Can you be personally liable for a corporate credit card? If you have an AMEX business credit card, who is liable? This is a great question. Can the business card you use as an employee of the company for which you work affect your credit rating?

There are different controls and liability options in place from AmericanExpress.

Combined liability

Combined liability means the company and each card member are jointly, and severally, liable, for all charges by the card holder. The Company isn’t liable for charges incurred by the Card Member which are personal in nature and which didn’t accrue as a benefit to the company, or charges for which the company reimbursed the Card Member.

Individually Billed, Individually Paid

Each card member gets a monthly billing statement from AMEX. The Card Member is responsible for submitting expense reports to the administrator in order to get reimbursed, and in order to get payments back to American Express.

  • It encourages timely submission of expenses
  • The card member is responsible for reconciliation and payment
  • It encourages accurate documentation of your expenses
  • It reduces corporate workload, since employees are responsible for reconciling their bills

Corporate Liability

This liability option is recommended if your company is strict about preventing personal use of the Card. Or, if your staff, like Directors, are trusted with personal expenses, this option is recommended.

  • The company is liable for all charges
  • The company isn’t liable for unauthorized use of the card

Centrally Billed, Centrally Paid

Central billing combines all of the statements into one group, which is sent to a central point of contact. The company then makes a payment for all charges on all card accounts.

  • You can make one payment
  • Improves cash flow

Summary

Bottom line, AmericanExpress business cards can split liability in many ways. It all depends on which program you choose for your billing options.

Delancey Street is here for you

Our team is available always to help you. Regardless of whether you need advice, or just want to run a scenario by us. We take pride in the fact our team loves working with our clients - and truly cares about their financial and mental wellbeing.

"Super fast, and super courteous, Delancey Street is amazing"
Leo
$125,000 Small Business Loan
"Thanks for funding me in literally 24 hours"
Jason
$35,000 Lawsuit Advance
"Great choice for first time fix and flippers"
Mary
$250,000 Hard money Loan

In The Media

Delancey Street CEO discusses ways to reward employees
Delancey Street CEO discusses the benefits of franchising on Forbes.
Delancey Street CEO discusses management on AMEX.
Funding Circle

What Is Funding Circle? In Funding Circle, business owners who…

What’s a SOLE PROPRIETORSHIP

In today’s society, it appears that many people are looking…

A Step by Step Guide to Incorporating a Business

Your business can never flourish without being incorporated, as there…

Best Payroll Software For Small Business

This article is about what is the best payroll software…

Namely Review

Namely is a cloud based solution for companies who need…

Delancey Street understands funding like no one else!
Steven Norris
Get Funding Today

Ready To Get Started?

If you have questions, feel free to shoot us an email, or fill out our live chat.

Apply Now