For managers who have struggled to control extravagant spending on corporate credit cards, MasterCard has a new product that may help.  Called inControl credit (BusinessWeek, April 21, 2008), the program allows companies to set strict controls on the types and amounts of spending allowed.  These controls can be applied to entire departments or to specific cards.  Furthermore, managers can even elect to receive real time updates on employee spending through email or text messages.

Mastercard eventually plans to roll this product out to the consumer market, even creating a card specifically designed for college students.

While this approach may seem like a good idea to help a company control costs, also realize it could have a negative impact if not handled correctly.  Make sure all employees understand why the product is being used, and take the time to completely spell out the parameters.  If possible, phase it in or test it with those individuals within your team whose opinions seem to lead the others (whether positively or negatively).

Enacting tight controls such as this product offers usually serves to enhance employee negatively and poor morale.  Be prepared to counter that, or this product will only exacerbate existing conditions.