Company Credit Cards: Who Pays?
Who, ultimately, carries the responsibility for company credit cards, you or the business? Some folks will tell you it’s the company while others will say the burden’s on your end. The truth, in fact, depends on the contract behind the credit card issued under your name.
When accepting the offer of a company credit card, always clarify the terms of its contract with your employer. In some cases, you are merely an authorized card user, with the company held responsible for the actual payments. In others, it is essentially your credit card that’s merely affiliated with the organization employing you (a good way to get a credit card if you have bad ratings).
Using Personal Credit Cards
For the most part, you can use your personal credit card for business-related expenses, pay off the balance on time then reimburse them later. While this isn’t that big of an issue, it can be if you work in a large organization where approval for reimbursements can take several signatures. Simply put, your employer is basically ending up using your money and all you’re getting are extra points (which, depending on what rewards program you’re on, may not even be all that good).
If this becomes a problem for you, we highly recommend getting a company credit card where your employers handle the payments. This should save you the headache of having to fund the payments upfront (to avoid interests) as well as avoid potential problems in the future (like getting laid off with business charges still on your account).
Posted in Business Credit Cards
