Overview
Ramp can auto-generate digital versions of paper receipts on the customer's behalf. Ramp built this feature to be:
- Hassle-free for employees — Digital receipts save employees time on select card transactions.
- Comprehensive and compliant — Digital receipts contain relevant info about the transaction, such as items purchased, prices, and merchant information.
- Included vendors — The availability of digital receipts depends on the transaction data included with the charge. Historically, this feature covers some but not all transactions. Most transactions still require employees to submit receipts.
Are auto-generated receipts compliant with the IRS and audits?
Ramp uses specific transaction details sent through the card network (such as items purchased) to reconstruct detailed receipts that meet IRS and audit requirements. However, please note that auto-generated receipts over $75 are not considered IRS compliant - see more on the IRS website here.
The IRS requires that receipts for business expenses include the following information:
- Date of the expense
- Amount of the expense
- Description of the expense
- Name and location of the business where the expense was incurred
- Method of payment
How do I use auto-generated receipts at Ramp?
An admin can turn on auto-generated receipts in Ramp's company-level settings. When enabled, Ramp can automatically create a receipt on your employee's behalf so long as sufficient data is received from the merchant. If a receipt is auto-created, the employee does not need to upload receipts under $75 (the threshold for IRS compliance) manually.
Here's how to turn auto-generated receipts on:
Here's how it works:
- An employee spends money on any Ramp card.
- An auto-generated receipt is created for the transaction within a week.
- The receipt is automatically attached to the transaction, and the submission policy requirement for an uploaded receipt is dismissed.
Auto-generated receipts are only available for common merchants that share certain transaction details through the card network. Ramp will only auto-generate a receipt if a transaction does not already have a receipt attached, regardless of whether a receipt is required.
How does Ramp generate a digital receipt?
Ramp sources data for auto-generated receipts from the transaction information captured at the point of sale or payment.
For example, when a customer purchases an item at a retail store, the transaction data is typically captured by the store's point of sale (POS) system. This data can include the date and time of the transaction, the items purchased, the price of each item, any discounts or promotions applied, and the payment method. This information is transmitted to the merchant's payment processor, which may generate an auto-generated receipt if enough data is available.