Credit card for charity

CollH

Hello, 
Has anyone out there managed to secure credit cards for a charity?  
I have contacted most high street banks but it's either not a service they offer or we have to hold a bank account. We currently bank with CAF bank and use their business debit cards. 
Thanks

Savvy_Sue

We bank with Unity Trust, and they offer a credit card through Lloyds Bank Commercial Services. £3 per month per card, relatively straightforward to administer. 

One thing my manager twitches about slightly is that with cheques and BACS there is always someone who has to authorise, and we can't set up DDs without two signatures. With the credit card, we don't have that security: I have to get my purchases signed off AFTER I've spent the money, and that goes against all our financial controls. of course I've signed to say I won't use the card for personal expenditure under any circumstances, and I will only use it for necessary expenditure, but you do have to trust the people you give them to!

CollH

Thanks for your reply. I have spoken to Unity Trust but it's the bank charges that seem to be the issue for my manager (even though they are very reasonable).  Also another problem would be changing banks. Feels like I'm fighting a losing battle 😔

sliphi

There's little money to spare in the credit card business nowadays, hence the withdrawal of most cashback cards (or reduction in cashback to almost zero).

Have you considered donating directly to charities you wish to support?

CollH

Thanks for your reply but I work for a charity looking to use a credit card for day to day purchases 

Savvy_Sue

So what's the problem with continuing to use the CAF debit cards? 

sliphi

CollH said:

Thanks for your reply but I work for a charity looking to use a credit card for day to day purchases 

Whoops. I obviously had completely the wrong end of the stick.

But now I have the same question as @Savvy_Sue . i.e. What are you looking to be able to do with a credit card that you can't already do with your business card from CAF, which I understand is operated by Mastercard?

If it's credit itself your charity is seeking, could they not take advantage of the loans CAF have on offer?

Savvy_Sue

DH was doing a training course the other day on Financial Controls for Charities. 

Like many charities, we have an 'incoming' and and 'outgoing' account: the details for the 'incoming' account are publicly available, but we don't write cheques on it, or set up DDs or SOs from it. The only place money goes out to is the 'outgoing' account, by internal transfer. 

However, it was suggested in this course that it could be worth having an account which only has, say, £1000 in it for minor expenditure - that would be the one you'd have your debit cards connected to. If the cards or the details fell into the wrong hands, there would be limited damage. 

Not fully relevant to the OP's question, but possibly helpful if there's a concern about use of debit cards. 

vikki_louise

I’ve been looking for one too, I’m tempted to just get one in my name and use that and refund me at the end of each month (with correct paperwork and 2 signatures).

Does anyone have a charity account with a debit card? I wouldn’t mind if it was credit or debit but we can’t get one with Lloyd’s based on needing 2 people for a transfer or a cheque. Do people find with a second account it makes the reporting accounts messy in anyway or is it ok?

Savvy_Sue

vikki_louise said:

I’ve been looking for one too, I’m tempted to just get one in my name and use that and refund me at the end of each month (with correct paperwork and 2 signatures).

Does anyone have a charity account with a debit card? I wouldn’t mind if it was credit or debit but we can’t get one with Lloyd’s based on needing 2 people for a transfer or a cheque. Do people find with a second account it makes the reporting accounts messy in anyway or is it ok?

Certainly just running a personal card is an option, plus you can get one with cashback. We did that for DH for a while.

We don't have a debit card, but the OP does, with CAF bank. Also I think Unity Trust has a prepaid card you can load before it's needed. But there's a charge to top it up so we stick with the credit cards.