Personal Credit Card For Business Use

[Flight777]

Given the fact that Personal credit Cards tend to have better rewards programs and benefits. I want to know if anyone uses a personal creditcard for business expenses?

Please give me your thoughts on whether this is an acceptable practice given the 'no business use clause' in the terms and conditions.

The reason I ask is that I run a sole-trader business and am looking at the best way to maximize rewards through creditcard spend

 

[Nutcase]

Hi there

Keep in mind this only applies to Scheme (Visa/MC) cards with certain banks.

Bottom line - Get yourself an AMEX or a citibusiness Visa.

 

[one9]

99% you won't have any problems. Using different personal cards I have earned close to 5 million points over the last 5 years. The biggest annoyance is having to keep change cards as points caps are introduced etc.

 

[Flashback]

I have done this for 6 years and never run into any problems.

 

[mysavings789]

I don't see any problem in using your personal credit card (cc) for business as long as you are the owner of the company. I noticed some of my office mates also use their personal cc for their official trip (to gain more reward points) and have it reimbursed from the office.

 

[Nutcase]

I don't see any problem in using your personal credit card (cc) for business as long as you are the owner of the company. I noticed some of my office mates also use their personal cc for their official trip (to gain more reward points) and have it reimbursed from the office.

Thats not quite the point. Some banks have a clause in their credit contracts that prohibit the use of personal cards for business use. The reason for this is that Business specific Cards (M/C and Visa) have a higher interchange than personal cards and therefore the bank is foregoing revenue by you not using a Business card. This is all there is to the reasoning

 

[Reggie]

The last 2 jobs I have had have not had company credit cards. All personnel use there own personal credit card and submit expense claims. Good for the points, bad if the company goes under and I have outstanding expense claim(s)

 

[albatross710]

I have noticed in the Westpac Krisflyer application and communications that they are reinforced the 'consumer' rules of the card and pointed out that it isn't for business use.

Of course, that is why they have 'consumers' $55k credit limit on the card isn't it?

I thought it was a line that they need to maintain in order to meet requirements under the consumer credit code or some such thing. Business-2-Business cards don't have the same protections.

 

[Flying Fox]

Thats not quite the point. Some banks have a clause in their credit contracts that prohibit the use of personal cards for business use. The reason for this is that Business specific Cards (M/C and Visa) have a higher interchange than personal cards and therefore the bank is foregoing revenue by you not using a Business card. This is all there is to the reasoning

I would say that this is very hard to police. Whilst it may be part of the T&Cs, I think that it would be difficult to enforce esp. if you paid on time and had a good credit rating etc