more-arw search

Q&A Forum

Corporate Credit Card, Personal Liability

I will be starting a new controller job in October. The company has a 90 day probationary period during which time I am ineligible for PTO, benefits, 401(k) and all employee programs. The company demands I be issued a company Amex card to which all eligible expenses must be paid, some of which are over $11,000.00. I have not seen any financial statements for the firm. I do not know their cash reserves, aging A/R, open A/P, etc. I have no idea if the Amex card is paid in full each month or if an open balance is retained. My question is, can I be held personally liable for any and all charges posted to my name in the event Amex cannot collect from the primary cardholder?

Answers

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

The answer is possibly. My firm offers Amex cards to about 60 employees. When I joined, I was asked for my personal information for an Amex application. It was explained to me that, if I do not submit my Amex in time for a reimbursement, my personal credit report takes a ding. My firm is held harmless.

We had a situation where a new employee was denied a card. Amex asked if the firm wished to assume the liability for that card, as the employee did not pass the standards set by Amex.

I know there are several programs. I would ask your HR Manager which program applies to your firm.

Topic Expert
Christie Jahn
Title: CFO
Company: Prime Investments & Development
(CFO, Prime Investments & Development) |

Anon,

Definitely let them know your concerns. I am sure they can clear up your anxiety over it. It's most likely a precaution to limit the exposure to the company for erroneous charges. They will also probably appreciate your concern.

We use a business American Express but it's only tied to the CEO's name. I have a corporate Chase Card as do all of our Store Managers but we limit the exposure and the policy states we can deduct any unauthorized charges.

Ashley Collins
Title: Director
Company: 3D Procurement Solutions
LinkedIn Profile
(Director, 3D Procurement Solutions) |

In answer to the first part of your question yes the Amex charge card will be acquitted in full at the end of each month or cycle cut. This is irrespective of the transaction type / amounts registered on the card. As a point to note for corporate based expenses Amex does not issue a credit card.

The second part of your question will be dependant upon the liability profile required by the card issuer. In the case of Amex it is sole Corporate liability for Purchasing Cards and Limited Liability which is defined as the Company and the Cardmember sharing liability for charges on the Corporate Card. The company’s liability is limited to approved business expenses that have not been
reimbursed to the Cardmember. The Cardmember is liable for all other charges for the Corporate T&E card.

The other consideration you may want to take into account is the spend limit applied to your card. During implementation Amex will work closely with the business to ensure spend on cards is consistent with policies and is therefore capped to ensure compliance.

I hope this brief outline covers off your concerns.

Carl Cork
Title: President
Company: Compass Engineering Corp
(President, Compass Engineering Corp) |

Actually Amex does have a Corporate Credit card, My employees all carry one and I do not necessary have to pay it all off at once. We have had these cards for many years and at times carry a balance.

29482 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.