The Procurement Glossary » Procurement Card (P-Card)

Procurement Card (P-Card)

Procure-to-Pay

Also known as: P-Card, Purchasing Card

Definition

A company payment card issued to staff for low-value purchases, replacing requisitions and POs for small buys.

Explanation

P-Cards cut the process cost of tail purchases by removing paperwork, with control via spending limits, merchant restrictions and reconciliation. They speed small buying but need monitoring to prevent misuse and maintain spend visibility.

Example

Staff use P-Cards for sub-RM500 purchases, reconciling transactions monthly against receipts.

Related terms

• Tail Spend — The large number of low-value transactions and suppliers that together make up a small share of total spend but a big share of effort.
• Process Cost per Order — The internal administrative cost of processing a single purchase order, covering staff time, systems and overhead.
• Spend Under Management (SUM) — The proportion of addressable spend that is actively managed by procurement through contracts, sourcing and controls.
• Expense Management — The process of controlling and reimbursing employee-incurred costs such as travel, meals and small purchases.

Related concepts

• Tail Spend Management — Bringing the long tail of small, fragmented, low-value purchases under control through visibility, consolidation and catalog-driven self-service.

Frequently Asked Questions

What is Procurement Card (P-Card)?

A company payment card issued to staff for low-value purchases, replacing requisitions and POs for small buys. P-Cards cut the process cost of tail purchases by removing paperwork, with control via spending limits, merchant restrictions and reconciliation. They speed small buying but need monitoring to prevent misuse and maintain spend visibility.

Can you give an example of Procurement Card (P-Card)?

Staff use P-Cards for sub-RM500 purchases, reconciling transactions monthly against receipts.

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