Company Forced American Express Card, Legal?

mow2512

Hello everyone, quick question on company forced charge cards.

My employer's expenses policy has recently changed and now requires every employee to take out an American Express charge card to pay for any travel / accommodation / buisness expenses. This card is taken out in my name and at my address and payments are made from my bank account. I have to submit receipts and claim the money into my bank account to then settle the card each month.

Apparently this has been done for compliance reasons and to allow them greater visibility of where money is being spent.

Firstly I'm not a fan of being told what credit/charge cards I have to use when they are going through my account and may have concequences on my credit score.
Secondly these card details are then taken by team administrators to book hire cars and hotels etc so I don't feel these are secure anymore.

Does anyone have any opinions on the legality of this situation?

polarization

I cannot see how your company can use your card information to book hotels or hire cars on your behalf using your card details. It seems to be in breach of the T&Cs.

Why shouldn't your company change the policy that everyone pay for their own expenses and cliam it back monthly through payroll?

The card details are very sensitive to me. You cannot call the bank on someone's behalf, how can someone use it to buy things on someone's behalf? Especially if somethings gone wrong in the card due to your company mistake when using the card online, you are the one that need to solve it with the bank.

I would rather pay all the expenses myself and claim it back through the monthly payroll than give them my bank details. Sorry that I cannot provide any legal opinions on the matter but just from my common sense.

MisterBaxter

The relationship between you and your employer should be covered by your contract of employment but I would be cautious about setting up a personal credit card for business use and relying solely on the employer to make your monthly payments, if they miss a payment date it will be you that is being chased and you that will have the default. I can't imagine that an Employment Tribunal would consider it to be a fair contract term.

There may be an issue of indirect discrimination but you could only rely on that if your religious beliefs prevented you from having credit.

If there are a large number of employees all racking up large expense claims each month the company could technically be hiding its financial liabilities as the line of credit is with the employee and not the company but I don't know whether this is actually illegal. More of an issue would be if the company becomes insolvent you would be liable for the debt on the card and not the company, you would probably have to rely on your status as a creditor to get the money back.

Has the question been asked why they can't or won't have a corporate card system. The company holds the line of credit and authorises employees to use it. The use or misuse is then a simple employment policy issue.

Hominu

So its your card connected to your bank account and you are fully liable for all payments? All you get is expenses paid? But the company can decide to use the card on your behalf? I wouldn't accept it.

Where I work its the other way around, I have my own personal card provided by the company and its up to the company to pay the statement each month. I just have to provide receipts for any expenditure else its charged to me (unless its fraud of course).

Auntie-Dolly

Sounds very unusual - it is normally the other way around and the Company hold the card. i wouldn't be happy with the system they are proposing.

GRM

It's not that unusual, the company I work for has 200,000+ employees worldwide and we have the same 'company'-Amex-that-isn't system. It's not mandatory though and I just use my own charge card for expenses and reclaim every two weeks.

PaulW922

Many employers run a system whereby staff claim back expenses at the end of the month - I have been doing that for over 20 years. However I think it is odd that (a) your employer dictates not only that you must use a credit card but also which one you have and (b) that they make charges to what is your personal card on your behalf.

I am wondering if, by allowing someone else to us your card, you are possibly breaking the terms of the agreement? Supposing a rouge charge was made and your employer didn't cough up for it? Have you thought about referring this to Amex and asking about the extent of your liability for transactions made? I think I know the answer but getting it in writing might help to bring the matter to a head.

InsideInsurance

Are you sure you are 100% correct on this.

A former client used AmEx for their company cards, it was applied for through the company account using your personal details. It was paid for by you (your choice of how) but the company was a guarantor for it if you didnt pay in time. You submitted your expenses and got the money back - before or after simply depending on timings.

Certainly with them, it was the only way you could get a company card and company cards were encouraged but ultimately if you wanted to pay using your own card, repay it and then claim it back then this was still acceptable.

FireWyrm

GRM wrote: »

It's not that unusual, the company I work for has 200,000+ employees worldwide and we have the same 'company'-Amex-that-isn't system. It's not mandatory though and I just use my own charge card for expenses and reclaim every two weeks.

It isnt usual and I wouldnt do it. If the company wants me to have expenses then they provide me with a card and the bill is entirely their responsibility. This sounds like an exercise to shift responsibility from them to you as you would be financially liable if they didnt pay the bill or give you the money for it. It isnt a case of 'if' they miss a payment it is a case of 'when' and I wouldnt stand for it. I would either tell them the above or tell them to do one and move on to a reputable employer.

planteria

Hominu wrote: »

So its your card connected to your bank account and you are fully liable for all payments? All you get is expenses paid? But the company can decide to use the card on your behalf? I wouldn't accept it.

nor would i. i suspect the intentions are right here, and assume, and hope, that it would be managed properly and not leave you short. but that's not the point. either it should be a company credit card, or yours. it can't be a combination of the two.

planteria

i don't see the 'troll' angle here.

i have had to pay for fuel, for example, on my own card when employed by another company. and have claimed back, as above. i don't the implied idea that someone from The Company can look at your account can be right.