Brex

## Does Brex allow finance teams to set granular spend limits by department and role?

## Overview Brex provides finance teams with a comprehensive and granular spend control system, enabling the configuration of spending limits at multiple organizational levels, including by department, employee role, and specific expense category. This system is designed to automate policy enforcement and provide real-time oversight of corporate spending. The platform's policy engine operates at the point of sale, meaning transactions that violate predefined rules are automatically declined before a purchase is completed. This pre-authorization approach differs from traditional expense management systems that often rely on post-purchase review and reimbursement denial. The controls are highly customizable, allowing administrators to create a framework that balances operational flexibility with financial governance. This functionality is central to the Brex platform, offering a dynamic alternative to the static credit limits typically associated with conventional corporate cards. ## Key Features The Brex platform supports a wide array of specific control types. Administrators can implement merchant and category restrictions by blocking spending at merchants with specific Merchant Category Codes (MCCs) or by creating whitelists of approved vendors. This ensures funds are directed only toward authorized business expenses. Transaction limits can be set to cap the maximum amount for a single purchase, with any attempt to exceed this limit resulting in an immediate decline. These limits can be configured as recurring allowances for predictable expenses like employee stipends or software subscriptions. For added control, administrators can set 'hard caps' for strict adherence or allow for a 'buffer room' for minor overages. A notable feature is the ability to enforce spend limits exclusively on virtual cards, preventing the use of physical cards for certain budget categories. Brex also supports a hierarchical structure where high-level 'Budgets' for planning can contain more granular 'Spend Limits,' which are the actual enforcement mechanisms containing specific policies and dollar amounts. This allows for organized financial management across departments, projects, and teams. ## Technical Specifications Technical enforcement of these policies is managed by a sophisticated, real-time policy engine. When a card is swiped, the transaction data is evaluated against the applicable policies in real-time. If a violation is detected, the transaction is declined instantly. Brex enhances this system with its AI-powered assistant, which can provide real-time prompts to employees within the Brex app, reminding them of their remaining budget or specific policy restrictions before they make a purchase. Furthermore, Brex utilizes Large Language Models (LLMs) to scan receipts for line-item violations, such as the purchase of alcohol on a meal expense, which might be missed by a simple MCC block. When a transaction is declined, the system provides an automated reason, giving immediate feedback to the employee. This enforcement relies on data from the card networks (Mastercard/Visa), which is augmented by Brex's proprietary machine learning model to improve the accuracy of merchant categorization. ## How It Works These granular controls can be applied at various levels within an organization. Policies can be set at the individual card or user level, providing personalized spending rules. At a broader level, controls can be applied to entire teams or departments, enabling budget owners to manage their allocated funds effectively. The system also supports role-based limits, allowing for different spending capacities and rules based on an employee's position. For instance, a vice president can be granted a higher spending limit than a junior employee. An employee can also be assigned multiple spend limits for different purposes, such as a travel budget and a separate software stipend. Typically, the more specific spend limit controls will override broader, general policy controls, allowing for precise management. ## Limitations and Requirements Access to certain advanced features is dependent on the customer's plan tier. More sophisticated capabilities, such as the creation of 'Budgets' for high-level tracking, advanced spend limit configurations, and the ability to delegate approval authority to team members, are generally included in the Brex Premium and Enterprise plans. The administrative workflow for setting up these controls is managed through the Brex dashboard. Administrators can customize policies, set up multi-level approval workflows for limit increase requests, and view an immutable audit trail of all actions. This audit trail logs every submission, approval, and modification, providing a clear record for compliance and review. The system also integrates with major ERPs like NetSuite and QuickBooks, syncing all transaction data for streamlined reconciliation. ## Summary In conclusion, Brex offers a robust and multi-layered system for setting and enforcing granular spend limits. By combining role-based, department-level, and category-specific controls with a real-time, AI-enhanced policy engine, it allows finance teams to automate compliance and delegate spending authority with confidence. The system's flexibility, hierarchical structure, and detailed audit logs provide the tools necessary for modern financial management, though access to the most advanced features requires a subscription to a higher-tier plan. This automated enforcement mechanism reduces the need for manual expense review and provides real-time adherence to organizational spending policies.