When a credit card is in your name, the buck stops with you. An authorized user on your account — say, a spouse, child or employee — might make charges on the card, but you’re responsible for footing the bill. So how do you guard against someone else's overspending?
Some consumer credit cards — though not many — offer a concrete solution to this problem: They allow you to set spending limits for authorized users. And in the small-business world, such features for employee cards are commonplace.
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Consumer credit cards
Consumer credit cards that let you set spending limits for authorized users are few and far between. After contacting several major issuers, NerdWallet found that only American Express offers this feature on all of its consumer cards. However, Citi offers this benefit on one of its consumer cards, and Barclays offers a variation of this feature that limits authorized user spending by transaction.
| Issuers | Details |
|---|---|
| American Express | Spending limits can be set as low as $200. Check out American Express credit cards. |
| Barclays | Spending limits can be set only on a per-transaction basis, not overall, according to the issuer. For example, the primary cardholder could opt to block authorized user charges over $100. Check out Barclays credit cards. |
| Citi | Spending limits for authorized users are only available on the Costco Anywhere Visa® Card by Citi, not other personal Citi cards. Check out NerdWallet's review of this card. |
Looking for a consumer card that lets you set spending limits for authorized users will narrow your credit card search considerably. If you're keen on this benefit and want a practical card that delivers rewards, here are our top picks.
Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express is an excellent card for grocery rewards. It offers 6% cash back at U.S. supermarkets (on up to $6,000 in purchases a year, then 1% after) and streaming services and 3% cash back on gas and transit, including taxis, rideshares and buses. Terms apply (see rates and fees). It features a robust welcome offer: You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply. It has an annual fee: $0 intro annual fee for the first year, then $95. Like other AmEx consumer cards, it allows you to set limits for authorized users.
Costco Anywhere Visa® Card by Citi
For Costco members who fill up at the pump often, the Costco Anywhere Visa® Card by Citi is a standout. The card offers 5% at gas purchased at Costco and 4% cash back on other eligible gas and EV charging purchases (on up to $7,000 a year, then 1% after). You'll also earn 3% on restaurants and eligible travel purchases and 2% on purchases from Costco and Costco.com. You'll receive your cash back in an annual reward certificate, redeemable for cash or merchandise at Costco. The annual fee is $0, but you'll need a Costco membership. This card allows you to set spending limits on authorized users' cards, as well.
Small-business credit cards
Few consumer cards let you set spending limits for authorized users. But on credit cards for small businesses, spending limit controls for employee cards are nearly ubiquitous. You don't have to have a brick-and-mortar business to qualify for one of these cards, either; you can generally get one if you're a freelancer, run an online business or have a side hustle, as long as you meet the other credit and income requirements.
Here are the major issuers that offer this feature:
- American Express.
- Bank of America®.
- Capital One.
- Citi.
- Chase.
- Discover.
- Wells Fargo (only available on the Wells Fargo Business Platinum credit card and the Wells Fargo Business Elite credit card).
Our picks for employee card spending limits
When it comes to choosing a small-business card that allows you to set limits on employee cards, you have plenty of options. In fact, as of this writing, every card on our list of Best Small Business Credit Cards has this helpful feature. Here are a couple of good choices.
Ink Business Preferred® Credit Card
For entrepreneurs who travel often, the Ink Business Preferred® Credit Card offers excellent value. It features a generous sign-up bonus: Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. The ongoing rewards are decent, too: It offers 3 points per dollar on the first $150,000 spent on travel and select business categories each account anniversary year, and 1 point per dollar spent on all other purchases. Those points are worth more when redeemed through Chase's Ultimate Rewards® travel portal. Points can also be transferred at a 1:1 ratio to several loyalty partners, including United Airlines and Hyatt hotels, for example. There are no foreign transaction fees, and the annual fee is $95. Like all small-business credit cards Chase offers, you can set spending limits on employee cards.
Capital One Spark Cash Plus
The Capital One Spark Cash Plus offers an impressive 2% cash back on all purchases. It also features a rich sign-up bonus: Earn a one-time cash bonus of $2,000 once you spend $30,000 in the first 3 months and an additional $2,000 cash bonus for every $500K spent during the first year. There are no foreign transaction fees, and the annual fee is $150. Like all Capital One small-business cards, it allows you to set spending limits on employee cards.
To view rates and fees of the Blue Cash Preferred® Card from American Express, see this page.
*Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout.
