What is the purpose of limiting the number of cards issued in P-Card programs?

Limiting the number of cards issued in P-Card programs serves primarily to reduce potential fraud. By controlling the distribution of cards, organizations can closely monitor who has access to company funds and ensure that only authorized personnel are able to make purchases. This oversight helps prevent misuse of the P-Cards and minimizes the risk of fraudulent transactions. Additionally, when fewer cards are in circulation, it is easier to track spending patterns and identify any irregularities that could indicate fraud.

Organizations can implement more stringent controls and audits on a limited number of issued cards, ensuring that there are established protocols and accountability for each cardholder. This strategic limitation is critical in maintaining the integrity of the purchasing process and safeguarding company assets. Other options, such as increasing transaction fees or allowing for more employee spending, do not align with the fundamental objective of a P-Card program, which focuses on efficiency and fraud prevention.