Can an Employer Force You to Get a Corporate Card?

• 

  airzone on 18/07/2017 - 23:50

  +3

  It's common enough, however I was in a position (with other staff) where corporate tried to get us to exchange company liability credit cards to personal liability credit cards for travel / emergency spending. After seeking legal advice, we told them to jam it. They did cut off our cash advance capability though :(

  In the 15 years I had the card, only one person did the wrong thing, and they got gutted for it.

  The usual problem with the personal liability cards was an employee would put in their expenses, and their boss wouldn't approve them on time. The company wouldn't pay your expense claims until the boss approved, and they also wouldn't pay late fees or interest. People got stiffed all the time. But they did use the corporate travel agent (unlike us, because they had no Australian offices), so they didn't have credit card bills to the same extent as us.

  My personal take is that I don't spend personal money on company endeavours, and a card I am financially liable for is personal money.

  • 

    2ndeffort on 19/07/2017 - 16:23

    My experience exactly, at several different employers. Delays in the expense claim procedure mean that sometimes the monthly Amex bill doesnt get paid on time and there is an interest charge. Some companies refuse to pay the interest charge and blame the employee for being late with their expense claim. The employer skips responsibility as the card is the responsibility of the employee.

    As a manager I have also had it where my PA used to use my credit card for staff that didnt have their own cards and I ended up having to chase underlings for their lunch receipts or else cop interest charges on their expenses.

• 

  KitchenSink on 19/07/2017 - 00:04

  +2

  It's a trap.

  They can't legally force you, but you know the office politics of what can happen.

• 

  bluesky on 19/07/2017 - 06:35

  +5

  So long as the corporate card account belongs to the employer (although a card will be made out in your name), so they are liable for amounts charged to it (not you) - it is fair enough if the employer wants you to put work-related expenses onto such a corporate card. Usually, the company Admin or Finance department will receive the statements, and is responsible for payment. That is how it works from my experience. They should not make you liable, or be responsible for the payment.

• 

  altomic on 19/07/2017 - 07:48

  -1

  Yes, they can force you to get a corporate card, that is if you give in and get one.

• 

  psy on 19/07/2017 - 08:09

  One of my previous employers made us all get AMEX cards that were in our name, and that we were responsible for.
  Had to claim the expenses back for reimbursement.

• 

  Ocker on 19/07/2017 - 08:26

  If you are spending the employers money then why shouldn't they dictate which card they provide? After all, the services offered to employers by Amex goes beyond just issuing the card, for example they provide consolidated expenditure reporting etc etc

  • 

    D C on 19/07/2017 - 08:38

    +2

    The company isn't really providing the card, OP is responsible for it.

    It's crap, and I'd be saying 'no way'.

    The usual procedure is the company says "Here's you card, the limit is $5,000, don't spend any of it on hookers" and that's the end of it.

• 

  reno on 19/07/2017 - 08:32

  i'm sure u can choose not to get one, and the same time… they can choose not to reimburse you for any expenses

  • 

    RockyRaccoon on 19/07/2017 - 09:13

    And you can refuse to incur any expense on their behalf … So where to next?

    • 

      reno on 19/07/2017 - 09:28

      as long as you get your work done, that's all that matters
      if you choose not to travel (if that's a requirement), then I guess it means you're not fulfilling your duties/roles that you signed up for

      • 

        RockyRaccoon on 19/07/2017 - 09:38

        So it just ends in a stalemate.

        The point is that as I say below, the OP needs to discuss the concerns wih the employer first, then and only then if they cant resolve it, seek help.

• 

  Skramit on 19/07/2017 - 09:29

  OP are you sure you are responsible for paying the balance? That's highly unusual for a corporate Amex. Most employers pay the balance (as long as you put in your receipts etc internally).

  Yes most corporate Amex cards are in the individual name of the user. That's normal because it's a good preventative to stop you walking in to a car dealership, buying an Audi then quitting your job the next day.

  Also, corporate Amex cards are usually eligible for reward points programs but normally the employee has to pay the $89 fee. So if you are burning through thousands of points per month with business travel this can be more than worth it.

  I think you are over reacting and being way too precious. Your employer is providing a separate line of credit for your work related expenses and you seem aggrieved by this?

• 

  RockyRaccoon on 19/07/2017 - 09:30

  Firstly. never indcate to your employer that you will lose the ability to accrue frequent points. If you do this all that you say next will always be seen as you trying to do anything to get the points.

  You say a previous agreement ended in tears, was this with the same company?

  However if they are late in paying off corporate cards, then they can also be late in reimbursing you. either way you can be out of pocket, the only difference is that you will know and can have some control over being hit with fees and your credit rating.

  That part aside, you need to discuss this with your employer. Explaining that you are concerned about your credit rating etc, especially in that you wish to buy a house etc, just like you have here.

  Ask them what alternatives that can offer.

  After that then go away and consider this.

  You maybe anticipating a storm that doesnt exist. Having too much info before you see what they have to say might just start world war3 before you need to

• 

  skittle on 19/07/2017 - 11:42

  +1

  Thanks for all the replies, I appreciate the advice.
  Just to be clear this is corporate charge card - requires paying off in full each month. It will be in my name and I am responsible for paying the balance. I will need to submit an expense claim to be reimbursed although this can happen within the 30 day payment window. I'm also responsible for any late fees incurred.
  I currently use a personal card for expenses so it isn't much different in that respect. I'm simply happy with the status quo and don't want to manage another card.

  The previous arrangement was with the same company but it wasn't implemented well and left a very bad impression.

  I've explained my worries on my credit rating. Amex responded with:
  "The American Express Corporate card is a charge card, it is not a credit card, thus
  it will not impact your personal borrowing capacity. American Express Corporate
  only enquire on your credit status and the line of credit is reviewed under the
  company financials and not from personal perspective.” ~ AMEX Australia

  I've further asked: "Could you confirm with AMEX that the charge card will not appear on an individual’s credit history search?"

  As I'm liable for the card, I'll be required to sign a credit agreement with Amex. I don't feel like this is a reasonable ask.

  • 

    Findo on 19/07/2017 - 13:26

    Can you get the card and not use it?

  • 

    trex on 19/07/2017 - 20:14

    Check to see what sort of liability the card comes under. In a company where I worked in Finance, our employees were issued a Limited Liability Amex card. As stated in item 3, the personal liability for the charges is only for business expenses which has been reimbursed. Anything that has not been reimbursed falls back with the Company. One of our employee had concerns that any overdue balance would affect her personal credit rating but Amex issued written confirmation that the card won't affect personal credit ratings at all as it still falls under the Company's Corporate account.

    The purpose of such card is to help employees out with cash flow and to prevent/reduce out-of-pocket situations when it comes to business expense. While late fees were generally not reimbursed but in situations where the fees resulted from the company's delay in processing the employee's claim, we usually reimbursed the late fees. I believe your Finance would do the same.

    From my experience, delays in reimbursement most often results from delays by employees in preparing and submitting the claim for approval.

• 

  ethanholden on 20/07/2017 - 20:27

  Yes, they can definitely do that. And when we are talking about "force", to most firms it means "induce", as they don't want this term to be associated with their policy.
  The company I have worked for one year ago told me to get a corporate card because the other employees have gotten one too and it would be best for us all to be on the same page. Later on, I found out that other employees were told the same. So I guess in this case "induce" would be the best word, although that was not what we were talking about.

• 

  skittle on 21/07/2017 - 21:18

  Sooo, just to finish this thread, and many thanks to all the responses:

  "we have further considered staff’s queries on whether the AMEX Corporate Card program can be an optional one (instead of a mandatory sign-up), given some concerns about impact on personal credit status & borrowing capacities with your local financial institutions. After taking much feedback on board, we can further inform that Australia or Singapore employees can choose to opt-in / -out of the application for a Corporate AMEX card."

  I never got a response from Amex on whether the charge card would appear on a credit search.

  https://www.youtube.com/watch?v=8PaoLy7PHwk