⚙️Card Expenses vs. Out-of-Pocket Expenses: What’s the Difference?

Managing business expenses efficiently is key to maintaining clear financial records and streamlining reimbursements. At Pemo, we make it easy to track both card expenses and out-of-pocket (OOP) expenses—but what’s the difference between the two? Let’s break it down.

What Are Card Expenses?

Card expenses are transactions made using a Pemo card—whether virtual or physical. These payments are automatically recorded in your Pemo account, making expense tracking seamless.

Key Benefits of Card Expenses:

✅ Real-time tracking – Transactions appear instantly in your Pemo dashboard. ✅ No reimbursements needed – Since the company covers the cost upfront, employees don’t need to wait for reimbursements. ✅ Better control & security – Set spending limits, approve expenses, and prevent unauthorized purchases. ✅ Automated receipt capture – Upload receipts directly for each transaction, reducing manual paperwork.

Example:A team member books a flight for a business trip using their Pemo card. The transaction is logged automatically, and they simply attach the receipt in Pemo—no need for reimbursement.

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What Are Out-of-Pocket (OOP) Expenses?

Out-of-pocket expenses are payments a team member makes using their own personal funds and later submits for reimbursement. These expenses still need to be logged in Pemo for proper tracking.

Key Considerations for OOP Expenses:

Manual submission – Team members must enter the details and attach receipts. Approval process – Admins review and approve OOP expenses before reimbursement. Reimbursement time – The company reimburses the amount, but the team member temporarily covers the cost. Policy compliance – Expenses must align with company guidelines to be approved.

Example: A team member takes a taxi to a client meeting and pays with their own money. They submit the expense in Pemo by uploading the receipt, and once approved, they get reimbursed

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Where Do These Expenses Appear?

Both Card Expenses and Out-of-Pocket Expenses are displayed in the Expenses tab in your Pemo account. This ensures all company spending—whether made via a Pemo card or reimbursable—is tracked in one place.

Card Expenses appear automatically in the Expenses tab when a transaction is made. OOP Expenses are visible once a team member manually submits them for reimbursement. Admins and team members can easily filter, review, and manage all expenses in one view.

By keeping everything in one place, Pemo makes it easy to stay on top of company spending without juggling multiple tools.

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Which One Should You Use?

Feature	Card Expenses	OOP Expenses
How it's paid	Pemo card	Personal funds
Tracking	Automatic	Manual submission
Approval needed?	No (pre-approved)	Yes
Receipt upload	Required for compliance	Required for reimbursement
Reimbursement process	Not needed	Required

Pemo Powe Tip: For smoother expense management and better visibility, we recommend using Pemo cards for all company-related transactions whenever possible. However, OOP expenses remain useful for cases where card payments aren’t an option.

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How Pemo Simplifies Both Expense Types

No matter how expenses are made, Pemo ensures everything stays organized: ✔ Seamless tracking – Whether it’s a card payment or an OOP expense, all transactions are recorded in one place. ✔ Quick approvals – Admins can review and approve expenses in just a few clicks. ✔ Expense policies in check – Ensure all transactions comply with company guidelines.

Pemo Power Tip: Want to minimize out-of-pocket expenses? Issue Pemo cards to your team members for easier, more controlled spending.