Anybody here have a Company Credit Card?

wassap · 13 Mar 2009 at 17:40

Hi Guys, I know theres a few corporate types here, just wondering if you use company cards?

Our company has signed up with American Express and we have been told, we have to use the card for our expenses. Now my problem with this is, that it seems we are being forced to use the card, which would be fine if the company actually paid the bill, but we actually have to pay the bill and claim that on expenses.

Basically the liability is with the employee, what irks me is that the company get a kickback from AMEX, we get nothing as such. I dont have a problem with using the card, but quite a few places I go to, dont actually accept AMEX, I know some of the smaller hotels I use, dont accept the card, so it means my business units OPEX goes up, just so as the corporate part of the company can get a nice kick back.

I didnt think it would be legal to have a credit card forced upon you?

bum · 13 Mar 2009 at 17:47

How did they actually force you to use the card?

Heliospherez · 13 Mar 2009 at 17:49

Most companies I know do exactly the same as you stated. Mine Also. When you say 'forced to use ' I'm assuming they just make you use it (rather than your own Visa or similar) when business needs.....not force you to spend for the sake of spending.

It means they can tie-in your 'claimed' expenses with the card a lot more easily - and probably have access to your account in some way if they needed it - and if there are any abnormalities or court cases - it's a lot easier to sort than if say you used your own CC.

Our company works the same way - when on company business you must use the company card. Then when you are home and get the bill - you itemise your expenses and it should tally with the card bill and gets paid. It means you are basically covered for problems like a normal CC, but with the added layer of having your business also covering you. Our also has increased travel insurance built-in (American Express also)

Anything non-business related - we use our own cards. I can't see a problem with it really. And if a shop/restaurent doesn't accept the American express card - you draw the money out of an ATM / keep all your receipts & claim it back that way.

rpstewart · 13 Mar 2009 at 17:50

I have exactly the same deal.

I use my corporate Amex once per trip to keep it alive and that's usually just a meal. Everything else goes on a personal CC. The way I see it if I'm liable for it then I'm having the cashback.

What killed it for me is our automated expenses tool takes a feed from Amex but also requires approval for any credits which are applied. Therefore whenever a hotel with a quick checkout screws up the bill (regularly) you need to get management approval for the resulting credit/debit pair which delays the expenses payment.

unclelonghair · 13 Mar 2009 at 17:51

We use AMEX at work as well, but our expenses system is set up to pay AMEX directly so it's actually more convenient.

I'm sure the fact that we use AMEX has nothing to do with the top man in the company also being a director of American Express...

wassap · 13 Mar 2009 at 17:53

Force is the wrong word I guess.

Basically if I put anything on expenses, I can only claim that back, if an Amex was used to pay, if I have used any other kind of card, then my expense claim will be rejected.

The expense policy states,if you make more than 2 expense claims during the year, AMEX must be used to pay, my expenses are normally ~£500 pm.

wassap · 13 Mar 2009 at 18:00

unclelonghair said:
We use AMEX at work as well, but our expenses system is set up to pay AMEX directly so it's actually more convenient.

I'm sure the fact that we use AMEX has nothing to do with the top man in the company also being a director of American Express...

I wouldnt have a problem with that system, but then from a companies point of view that kind of system could be open to abuse.

Its annoying as I cant use 4 or 5 of my regular hotels, I like small hotels, Im not a big fan of chains of hotels, I prefer the service you get from a smaller establishments, plus I have to pay more

unclelonghair · 13 Mar 2009 at 18:05

wohoo said:
I wouldnt have a problem with that system, but then from a companies point of view that kind of system could be open to abuse.
(

You still have to fill out an expense report and get it approved for a payment to be made to AMEX. They don't just automatically clear your balance.

wassap · 13 Mar 2009 at 18:18

Ahhh ok, that would work well, Our expense system is PITA now, all automated,but takes me 1/2 a day to sort out

mr.bond · 13 Mar 2009 at 18:19

I've got a company cc. I use it for expenses etc and the company gets the bill. Thought that was a idea behind having a company cc.

rpstewart · 13 Mar 2009 at 18:27

mr.bond said:
I've got a company cc. I use it for expenses etc and the company gets the bill. Thought that was a idea behind having a company cc.

Yes, that's the idea however it also means that the company is liable for anything which goes on the CC which makes recovering fraudulent expenses difficult. As a result a lot of companies pass that liability onto the employee (both the OP and I are in that situation) so that only legitimate expenses are reimbursed and the employee gets left with anything else.

mr.bond · 13 Mar 2009 at 18:29

rpstewart said:
Yes, that's the idea however it also means that the company is liable for anything which goes on the CC which makes recovering fraudulent expenses difficult. As a result a lot of companies pass that liability onto the employee (both the OP and I are in that situation) so that only legitimate expenses are reimbursed and the employee gets left with anything else.

I'm guessing I'm on a different deal then. although if my statement landed with a PS3 on it I'd prolly get sacked.

rpstewart · 13 Mar 2009 at 18:35

Yeah, expenses handling varies wildly by company. The smaller the company the better the system usually both in terms of what's allowed (class of travel, hotel chain that sort of thing) and how it's reimbursed - common sense prevails. When you start looking at multinationals (I'm one of over 300 thousand employees!) then the dreaded word policy appears at which point you're royally screwed. My last lot of expenses were delayed by a fortnight because some muppet in the Phillipeans put them on audit hold waiting for me to reply to an email which ended "there is no need to reply to this email". GAAH!

Richdog · 13 Mar 2009 at 18:37

wohoo said:
Our company has signed up with American Express and we have been told, we have to use the card for our expenses. Now my problem with this is, that it seems we are being forced to use the card, which would be fine if the company actually paid the bill, but we actually have to pay the bill and claim that on expenses.

This is normal and the same as what my company does... it's to stop people abusaing it and all about being able to screen and moderate what is paid out for by the company. Nowadays with companies getting so big and budgets so strict it's a real necessity. The days of the "company pays all" credit card are largely gone i'm afraid... not that I ever had one anyway.

wohoo said:
I didnt think it would be legal to have a credit card forced upon you?

DOn't be daft, if you're spending someone elses money then of course they can dictate how it's spent.

Jez · 13 Mar 2009 at 18:39

This is what i love about working for a smaller company. Anything goes as long as it is sensible and not a "waste", can be funded by any means and be paid back on demand if we do not want to wait until the payroll run. While its not ideal having to incur massive expense each month, it is at least made as painless as possible.

Policy when it comes to expenses is scary, this amex situation sounds far from ideal

OllyM · 13 Mar 2009 at 18:41

wohoo said:
Its annoying as I cant use 4 or 5 of my regular hotels, I like small hotels, Im not a big fan of chains of hotels, I prefer the service you get from a smaller establishments, plus I have to pay more

That's their problem for not accepting Amex - the fees aren't THAT much more than Visa/Mastercard and if they want to restrict their business then that's their problem!

unclelonghair · 13 Mar 2009 at 18:50

OllyM said:
That's their problem for not accepting Amex - the fees aren't THAT much more than Visa/Mastercard and if they want to restrict their business then that's their problem!

I don't think the problem with Amex is their fees - I've heard they are notoriously slow at paying, which is why a lot of places don't like accepting them.

Spitfir3 · 13 Mar 2009 at 18:51

I'd be careful with AMEX.. make sure you read the smallprint and beware of "joint liability" - apparantly comon on company AMEX cards. Heard stories of some guy being left with £50k to pay off himself. Apparantly the application form that is signed clearly indicates that all signatours on the card are responsible for charges incurred.

wassap · 13 Mar 2009 at 18:52

unclelonghair said:
I don't think the problem with Amex is their fees - I've heard they are notoriously slow at paying, which is why a lot of places don't like accepting them.

Yep.Thats what I have been told aswell.

Adam · 13 Mar 2009 at 19:00

I have the same arrangement for my corporate Amex card. Only use it for hotels and flights really and everything else is on my personal cards.