Friday, July 24, 2015

The Problem with Business or Club Credit Cards

So you have a credit card in the business or club name that offices/employees/workers use to make purchases for the business or club.  What if you see the statement and these purchases are unauthorized?  Unless you have a specific credit card policy signed by the person using the card, you cannot pursue the matter criminally.  And, chances are, if you try to recover in civil court, it will cost you legal fees and there will be nothing to recover.

Moral of this story: Do not allow anyone to have/use/hold a credit card in the name of the business or club without a signed specific authorization and limitation of use of that card for purposes directly related to the club or business – and limits on how much can be spent on a single item or per month or without authorization.  Have each person with access to the card sign the policy and keep the signed document in your file.

By Maura Phelan (