Company Forced American Express Card, Legal?

yangptangkipperbang

I used to work for a mid-sized company (part of a huge pan European group) which merged with another larger company within the group. I had a NatWest card in the company name. I was given a copy of the monthly statement, for which I had to make an expenses claim to justify all the items on the statement. I was responsible to my employer - he was responsible to NatWest.

After the merger we were "told" that we had to apply for an Amex "company" card - but the card was to be in the individual's name - but any "perks" on the card went to the company. (Apart from which many traders would rather you gave them a pile of dog's mess rather than an Amex card )
I queried, several times, who would be responsible for any disputed entries on the Amex account - each time I was told that the company would "assist" - to me this meant that I was responsible, although the company never actually used those word - surprise, surprise.

I refused to apply for an Amex card. If I was taking the risk on payments, I would have the perks. I was told "unofficially" that they would not pay me expenses against any other card. I then said that if they wanted me travel (which I did a lot !) then I would require cash advances (in the appropriate currency) to cover my upcoming expenses.

I heard no more - I opened a new Mastercard account with a good cash back rate and used that. All my expense claims were paid with no queries !!

Clive_Woody

I work for a pretty big global company and do a reasonable amount of international travel. I believe that I have the option of a company credit card, but I would still be liable for paying this off each month and submitting expense claims.

Instead I choose to use a personal card that gives me cashback so that I benefit from the spending. So long as I submit my expenses promptly then the money goes into my account quickly and there are no hassles.

We use a central travel agency for booking all travel and they keep my card details securely to make bookings for me. This works fine plus they also have all my loyalty scheme details (Hilton, BA, Virgin, etc...).

[Deleted User]

Clive_Woody wrote: »

they also have all my loyalty scheme details (Hilton, BA, Virgin, etc...).

Who benefits from the loyalty scheme, you or them?

planteria

yangptangkipperbang wrote: »

I opened a new Mastercard account with a good cash back rate and used that. All my expense claims were paid with no queries !!

good work. risking the political issues is one to weigh-up carefully, but if you can do the same as yang, a great solution all round. and, of course, use it responsibly. 1.5%CB from my Amex is going well at the moment...whacking work expenses on that, if i had a job, would be great;)

Clive_Woody

Bedsit_Bob wrote: »

Who benefits from the loyalty scheme, you or them?

Me. When they make the booking for me they make sure I get my points.

inmypocketnottheirs

I have a corporate card with a high limit as I travel internationally on a monthly basis. The card is issued by my employer, although I had to complete an application form with my own ID. The payments are made through my employers.

I would be greatly concerned if I was expected to pay and claim using my own credit card. As stated before, the debt would be mine and effectively I would be funding my employers.

My advice - find out all the facts - check the agreement/application form.

mow2512

Thanks everyone for your abundance of replies.

To clarify a the situation a bit.

Yes it is a large global recognised company.
It is classed as a corporate charge card with no credit limit and joint responsibility.
It will be taken out in my name at my address and paid from my bank account.
I will have to claim the expenses monthly which the company will pay directly to my bank account.
Late fees will only be paid by the company if they are responsible for the delay.
Our office admin lady wants to hold the card details so she can reserve hotels and hire cars etc.
The company policy states claims will NOT be paid for expenses on other cards unless you can show that Amex cards were not accepted.
Cash advances are still allowed but this is an awkward system to use and not helpful for reserving hotels.!
No perks can be claimed by the individual users.
This is being forced onto all employees that make two or more expense claims a year.
The company line on this is that its for compliance reasons and allows then to show the tax man where all the money is going.
I think some of you were also right though and they are basically getting up to do an admin teams work and are probably saving some wages somewhere.


Mow

Eonel

Your summary above is quite correct. Like many here, I have a corporate card with the same arrangement. I am forced to use Amex for everything except where it is not accepted.

In terms of perks,the company is primarily interested in the bigger & cash stuff - for example accepting a payment to take a flight or hotel downgrade.

They are generally not bothered with lower level perks such as Frequent Flyer miles or Hotel Reward schemes and will not ask about these. You should be able to quietly earn & spend these benefits.