A procurement card (pcard) is

A procurement card (pcard) is

• A. A credit card used by external vendors
• B. A payment method allowing internal customers to purchase via credit card
• C. A check system
• D. An annual procurement budget

Answer: (B)

A procurement card is a payment method that allows internal staff to purchase goods and services directly with a credit card on behalf of the organization. This setup speeds up buying for routine, low-value transactions while maintaining control through preset spending limits, merchant restrictions, and monthly statement reconciliation. It captures the idea that internal customers use a card to pay vendors, which is why this option fits best. It isn’t a check system, it isn’t a fixed annual budget, and it isn’t something used by external vendors, so those descriptions don’t describe the pcard’ s purpose.

A procurement card is a payment method that allows internal staff to purchase goods and services directly with a credit card on behalf of the organization. This setup speeds up buying for routine, low-value transactions while maintaining control through preset spending limits, merchant restrictions, and monthly statement reconciliation. It captures the idea that internal customers use a card to pay vendors, which is why this option fits best. It isn’t a check system, it isn’t a fixed annual budget, and it isn’t something used by external vendors, so those descriptions don’t describe the pcard’ s purpose.