Corporate Credit Cards For Employees

Filed under: Credit Questions

George asks…

Can an employer refuse to provide “Incidentals Allowance” to employees during extended O/S travel ? (3 wks)?

My employer is sending me O/S for 3 weeks on official business. The company’s travel policy is such that all expenses are payable for with a corporate credit card (accommodation, food and travel), which I am happy with. However, the travel and expenses policy states that incidentals such as newspapers, soft drinks and light entertainment (museum/movies) etc will need to be paid for by ourselves, and WILL NOT be reimbursed.

Can anyone tell me if this is legal or justifiable by any employer ?

Who can I speak to in order to know what I may be able to do ?

Thanks heaps

admin answers:

Yes it is legal. The company is not responsible for any entertainment they do not outline for you in the contract.It is justifiable by most companies.

My husband travels in state all the time. The only thing his company provides for him is a room to sleep in at night. All other expenses are his.

William asks…

Company issued credit card?

Hi- I’ve just started a new job with a multi-billion dollar company with about 36,000 employees world wide. I’m required to obtain a corporate american express credit card for business related expenses and travel. My question is, can I be denied this credit card if I have less than stellar credit? The company pays American Express directly after I submit my expense report to accounting. While I am responsible for submitting the expense report in a timely manner, the company as I said above, pays Amex, not me.

admin answers:

If its your credit in your name then yes they can if it is a company account with just your name on the card then all they have is your name on the card and not your credit then no you cant be denied

Thomas asks…

Do you think I’ll win the appeal for unemployment? If not please help with suggestions. Read below?

My unemployment was denied because I didn’t pay my corporate credit card on time which was the cause of my termination. My argument and the truth is that the credit card statements were delivered US Mail and placed on the cash wrap at the front of the retail store. Customers and employees have full access to items on the cash wrap. Then at some point the mail is placed in the office in the store managers basket. There is a possibility the statement was late even before I received it which is my argument. What do you think?

admin answers:

I worked in accounting for over 20 years. I have processed THOUSANDS of expense reports. I don’t think you were fired over a late payment. I think you used the corporate card for personal business. If the charges on the card were legitimate business expenses, the company would have reimbursed you for these expenses. Now if they did and you took the money and then failed to pay your corporate credit card, that is good reason to write you up. How long was it that you didn’t pay the bill? Even if one statement got lost, they send late payment notices. You never got these? You didn’t realize that you didn’t get a statement for that month? You apparently made a lot of charges, you didn’t question not getting a bill? You could have gotten a copy or gone on line at any time. I’m sorry I don’t buy your story and if I was looking at your case, I would deny it.

Maria asks…

Applying for a credit card…What type of business is a library considered?

I work at a small city library as the only employee (the director) and I have been given permission to apply for a credit card. I found a small business credit card that was agreed on, but when I went to apply, I was confused about which type of business to classify us as. The options are:
Business Individuals
C-Corporation
Corporate Trust
General Partnership
Individual Trust
Limited Liability
Limited Partnership
Professional Corporation
Proprietorship
S-Corporation

It doesn’t seem to me that we are any of these. Maybe a library doesn’t count as a business? Help please! Which one would you consider a library?

admin answers:

It would most likely fall under C-Corporation, as it is part of the city government, and cities are incorporated.

Susan asks…

Do you think that corporate big wigs will ever cut back on extravagant luxuries given the tough economy? ?

CITI Bank wanted to buy a 50 million $$$$-luxury jet for corporate big wigs even though they got billions in bail out money.

Another corporate executive whose office received bail out money spent $100,000.00 on a toilet for his office.

All the while laying off employees and raising credit card rates on people who have good credit.

Is there any chance that they are dining on less caviar and lobster?

I’m for a bail out for hard working Americans, but not for Wall street millionaires.

admin answers:

Well Ms. Pelosi flys in her own private jet, the first and only speaker of the house to do so. Hmmmmm

Corporate big wigs have earned their right to buy jets. Citi bank ordered that jet years ago and they are selling old ones to pay for it.

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Corporate Credit Cards For Employees

Filed under: Credit Questions

Maria asks…

Would an employee be responsible for an American Express corporate card in the employees name?

A corporation applies for an American Express card and gets 7 cards in individual employee names to pay for expenses for the business. Employees were told that it was a soft credit check and they would not be responsible for the bill. Is this true?

admin answers:

Unless fraud is committed. Employees are never exempt from fraud, ever.

Robert asks…

i need to write a letter to employees for the process of turning in receipts for reconicliation reports?

I have to write up for employee the process on turning in receipts so I can reconcile there corporate credit cards

admin answers:

Write a firm letter,stating the procedure and the process required. Don’t make any rules, because someone will break them. But try to establish some principles to follow.

If they are corporate people they could be helpful or quite arrogant.

That is why the letter has to be firm.

Helen asks…

Is it legal for an employer to require application to a credit card?

This question has been asked before, but those who answer don’t seem to read it right, I’ll explain:

A certain employer requires it’s employees to apply and use a particular credit card it teamed up with for all travel expenses (hotels, flights, rentals, etc.). This credit card IS NOT in the companies name. It would be in the employee’s name and under the employee’s credit. The employee would be responsible for it’s payments. The company then reimburses the employee. The Company makes no payments to the credit card company. The employer has access to the card for monitoring though. Employee recieves no benefits from the card, and all the risk. The employer gets all the benefits and assumes no risk.

For review:
*Employer requires application (whether approved or declined) and use or credit card.
*Employer doesn’t pay credit card, employee does.
*The card is in the employees name and credit.

*Personal note: Company has history of not reimbursing on a timely manner and makes process tedious and difficult. The company also has an actual corporate card that the company is responsible for, but prohibits it’s use for travel expenses because of the said program in place. This is in California.

admin answers:

From what i understand from this question this would not be legal but the only way to know for sure is to provide ALL the details to the state and they will give you an opinion on the legality of this procedure….
Contact information:

http://www.dir.ca.gov/DLSE/aboutDlse.html#contactdlse

as with all laws there are numerous exceptions and exemptions to labor laws and without all the relevant details no one on Y!A can give you a definitive answer………..

The state of California has by far the most employee friendly laws in the US………..

Http://www.dir.ca.gov/DLSE/dlse.html

http://www.dir.ca.gov

Charles asks…

Corporate Creditcard Fraud?

I was working with a company called eDesigntree in Bangalore. Company Management issued Corporate Credit card in the name of few employees stating we can use the creditcard when we spend for corporate travel and other corporate expenses and company will pay against the bill statement. Management one day took two of our Corp. credit cards and used for CEO’s travel for one of the project. As the management has not paid the bills yet, Credit card company (Dueschebank) is behind us threatening us saying our names will be in Credit Negative list. What can be done in this case?
I was working with a company called eDesigntree in Bangalore. Company Management issued Corporate Credit card in the name of few employees stating we can use the creditcard when we spend for corporate travel and other corporate expenses and company will pay against the bill statement. Management one day took two of our Corp. credit cards and used for CEO’s travel for one of the project. As the management has not paid the bills yet, Credit card company (Deutsche Bank) is behind us threatening us saying our names will be in Credit Negative list. What can be done in this case?
I quit the company. But now the problem is, the company itself has closed down few months back. that’s why Bank is following up with me

admin answers:

The Company (as you say) issued the Credit card. How does the Bank come into picture? There must be something in writing or guideline issued by the Company for reimbursement against the credit card. Dont worry. Thge Company will make payment. By the way are you stilol in the employmebnt of the Company?

Susan asks…

why must I use my personal credit card for company expenses?

I work for a startup of 15 people. 4 of us travel almost 100%. 1 of us travels 25%. 3/4 the people who travel 100% have corporate cards. I travel 100% and DO NOT have one. The person that travels 25% also has no corporate card.

My employer is very slow in reimbursing me for company expenses (food,hotel,flight,car etc). The debt usually accumilates to 3000-4000 $ before I get reimbursed. I dont like the idea of using my personal card for company expenses as on a long term its not right (I’ve been doing it for > 1 year now). I am expected to travel thru 2007 at a minimum.

My boss (& founder) says its “too much work” for him to get me a new card is is not even willing to give me a cash advance. I am very frustrated due to this. I think its unfair I travel 100%, am a regular employee and dont have a card while another employee does have it.

The guy does not even return my phone calls when I call to enquire about my reimbursement.

Other than quit, how else can I handle this?
I have taken the moral high ground of declaring that I refuse to use my personal cards in the future – PERIOD. I have askef for a corporate card or cash advance or billing all my travel expenses to the Project Managers card who is an employee and has a corp card

admin answers:

Ouch – sounds like a sticky situation.

Honestly, startups are weird environments. Frankly, they are probably slow the reimburse you because of poor cash flow management.

Tell your boss you can’t continue to charge the travel. Make the arrangments w/o paying for them and submit the bill.

Even if the company pays you the initial travel cost – if you are stuck covering a month of interest on $3000 – that can be quite a bit over the course of the year.

Wish I had a better answer for you!
Best of luck.

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