Scout group - credit card advice

Skippydo29

Hi...

First time poster... we are looking to change bank accounts to allow for a credit card. Not sure if this is possible as we are a charity... if it isn’t is the best way to go a pre-paid credit card?

Any ideas gratefully received!

strawb_shortcake

I'm pretty certain our scout group wasn't allowed a credit card - can't recall the reason why but seem to think its something to do with getting a charity into debt??
What's your reasoning for wanting a credit card? Quite often for large purchases a leader will use their credit card and claim the money back from the group.

Socajam

Second the opinion given above
I would not trust anyone with a credit card that is not theirs.
Better off having the person reclaim the money back from the group.
Also ensure that there are 2 signatures on any cheque that is written. Stay away from debit cards as well.
If money is needed write a cheque and ensure that receipts are given for every purchase - no matter the cost.

DigForVictory

Fellow Wood Badge holder. Wouldn't try for a group card - could only end in tears & risk of losing Treasurer.

Simpler, safer, just as effective to train leaders to keep the receipts. (Our Treasurer digitises & stores in case of issues.)

Big fan of a credit card for absolute traceable safety & consumer rights protection but ye gods not through a Scouts group card. Nightmare!

rach_k

I'd agree with others that a credit card is a bad idea.

I wouldn't agree that using cheques is a good idea though; they are quite outdated. You'd be better setting up internet banking with dual authorisation so you can make payments and pay expenses by bank transfer. Much less hassle than cheques - much quicker and easier all round.

With bank transfers, they will usually be instant so if somebody buys something and submits a receipt straight away (we accept a clear scan or photo emailed or texted), if you can get both signatories to authorise it straight away they will probably be reimbursed the same day. For larger purchases, we accept a copy of a shopping cart or itemised list with prices and we will make the payment before the purchase. Obviously that is only to trusted members who we know will submit receipts afterwards and not scarper with the money.

00ec25

your major problem would be convincing the bank

it can be done

I know of people with credit cards in such circumstances, but they are underwritten by personal guarantees from the named cardholder - so effectively it defeats the objective of having it in the "group" name since it really isn't - eg: Nat West One Card

Savvy_Sue

Skippydo29 wrote: »

we are looking to change bank accounts to allow for a credit card. Not sure if this is possible as we are a charity...

It is possible, but not necessarily sensible, for all the reasons outlined above. I'll say a little more below when I've answered the other question.

Skippydo29 wrote: »

if it isn’t is the best way to go a pre-paid credit card?

That is possibly one of the least cost-effective ways of spending money known to humankind. There will be a charge to load the card, and possibly a monthly or annual charge to keep it 'live'. Plus not necessarily sensible for all the reasons outlined above ...



If you explain WHY you think you need a credit card, we might be able to suggest other solutions, although I suspect most of them have already been outlined ...



because from where I'm sitting, what you want in a charity or voluntary organisation bank account is accountability. Two signatures on cheques (and never ever sign a blank cheque to await completion by another signatory!), two people involved in authorising any online payments.



I've generally found it sensible to have four people who can authorise these transactions, with any two of them able to do so. That avoids the situation where someone's waiting for reimbursement, but you can't make the payment because the two people who might do so are just not available.



Last time I was 'raised up' to treasurer (of a small walking group), the first thing I did was set up a new bank account which allowed online banking - with two part authorisation - and change the existing bank account to require two signatures. I refused to set up online banking with the original account because everything could be done by just one person. And as I said to the committee, just because you CAN trust me doesn't mean you should.



Now, I also work for a medium sized charity. We do have some people with company credit cards, but the finance manager doesn't like them, BECAUSE there is no dual authorisation required. So if you are given a credit card, there are strict limits on expenditure, AND it's a disciplinary offence to use them for anything other than company expenditure - I keep mine in an ENTIRELY separate place in my bag so that I NEVER get it out by accident. Oh, and it costs £3 per month for each card.



What do we use them for? We have a weekly Sainsbury's delivery: it's not considered reasonable to require the various members of staff responsible for that to HAVE to use their own credit. We buy occasional rail tickets and make occasional hotel bookings: again, not all my colleagues who need to travel would have access to a credit card. And we have a few regular suppliers where we can't set up a credit account.



For everything else, you spend the money and claim it back on expenses, OR you arrange to make a BACS payment as and when - which is what happens with the walking group. And for the walking group, where I'm no longer treasurer, I'd be very much opposed to the use of credit cards!

gettingtheresometime

My first question would be why do you need/want a credit card for the group?