Can You Use Your Work Credit Card for Personal Expenses?
When using a work credit card for personal expenses, it can be a source of confusion and potential risk, especially without clear policies or approval from your employer. Personal and business expenses must be distinguished and managed properly to avoid any financial or professional repercussions.
Understanding Work Credit Cards
Work credit cards, often provided by companies like Boeing, are issued to employees for business-related expenses. However, the responsibility for payment typically lies with the employee, complicating the scenario when personal expenses are involved. This essay explores the nuances of using work credit cards for personal purposes and the potential consequences.
The Boeing Example
When I worked for Boeing, a company credit card was provided, but I was responsible for making the payments. The theory was that I would be reimbursed through the travel department after submitting a travel report. However, the timing of these reimbursements was not always predictable. In cases where the expenses were deemed questionable, such as personal laundry or alcoholic purchases, the travel department could withhold the payment until a satisfactory explanation was given.
Adapting to Reimbursement Policies
The flexibility of using a work credit card for personal expenses varies greatly depending on the company's policies and the employee's position. Some companies may allow small personal expenses, such as up to 10% of the total, as long as they are promptly reimbursed. For higher-value personal purchases, immediate reimbursement or payroll deduction may be required.
Managerial Flexibility
Managers with hire/fire authority might have more flexible policies since they are seen as representatives of the company. They might be allowed to use the card for both business and personal expenses, provided they ensure the expenses are justifiable.
Risks and Consequences
Using a work credit card for personal expenses without explicit permission can lead to severe consequences, including reprimand or termination. It is crucial to obtain prior authorization from your employer before making any personal purchases.
Emergency Usage
In emergencies, you may have no choice but to use the card for personal expenses. In such cases, it is imperative to inform your boss immediately and explain the circumstances. Documentation of the emergency can help in justifying the expense and expedite the reimbursement process.
Types of Company Credit Cards
There are two main types of company credit cards: corporate cards issued by credit card providers like American Express, and business cards, also issued by American Express. Corporate cards are primarily used for business expenses and require expenditure justifications. Business cards, while not closely monitored, are typically not enforced for personal expenses.
Conclusion
The decision to use a work credit card for personal expenses should be approached with caution. Clarity on the company's policies and obtaining approval are essential to avoid any unnecessary complications. Whether it's a minor personal purchase or a significant emergency, it is always best to seek permission and ensure proper documentation and reimbursement.