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Use of corporate credit card points?

Old 02-10-2018, 06:26 AM
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Default Use of corporate credit card points?

I use my corporate Amex to pay as many bills at work as possible and earn about 4 million points per year. The last few years I've been converting the points to credits on my bill which is great but what about personal use of the points? Id there a way to personally own the points generated from the corporate card?
Old 02-10-2018, 06:32 AM
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Do you own the business?
Old 02-10-2018, 07:26 AM
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^ This. If you own the company yes. If not negotiate them as a bonus?
Old 02-10-2018, 07:28 AM
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I personally use all the points I generate at my job (non owner). Covers all my vacation travel expenses. To me, it's basically part of the salary, if they ever removed that perk of the job it would basically be the same as cutting my salary $3000-4000/year.
Old 02-10-2018, 07:31 AM
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You have 2 options to do this. Either open up a different personal card account with AMEX and link the accounts or pay $90 per year and they will convert them for personal use.
Old 02-10-2018, 07:40 AM
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Btw, 4 million is a ton of points. I put 50k on my corporate card per year and that roughly $500 in gift card rewards.
4 million is 80x what I spend so you would get 40k in gift cards per year.
Old 02-10-2018, 07:44 AM
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Jesus 4M a year ?!!??

Last year I earned 100k points on my personal Amex

Good god !
Old 02-10-2018, 07:45 AM
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Originally Posted by jj1987 View Post
I personally use all the points I generate at my job (non owner). Covers all my vacation travel expenses. To me, it's basically part of the salary, if they ever removed that perk of the job it would basically be the same as cutting my salary $3000-4000/year.
It appears we, as businesses, can add the cost of using a credit card to the cost of the item. This can run 2-3%, to cover the cost of the "points" you get.
Old 02-10-2018, 07:59 AM
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Assuming you own the business I see no problem with you deciding. Technically the points would be property of the business and technically if you used them it should be reported as income to you. But from a reality standpoint it's a non-issue.
Old 02-10-2018, 08:07 AM
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Originally Posted by billinstuart View Post
It appears we, as businesses, can add the cost of using a credit card to the cost of the item. This can run 2-3%, to cover the cost of the "points" you get.
Yep. Some gas stations do that. I'll avoid them unless the discount exceeds the value of the points to me. I usually value points at 2%, or 3% if I've hit my airline status goals for the year and switch cards.

For me, I'll gladly eat 3% to not have to chase invoices and keep my freelance customers on auto bill. If I were a bigger company with a person dedicated to invoicing I think I would change my stance on that.
Old 02-10-2018, 08:22 AM
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It has been proposed several times by the Feds to add points and rewards to the list of taxable benefits, so far it hasn't happened.

As a business owner I used the points just the same as when I'm an employee.
Old 02-10-2018, 08:26 AM
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One thing I like about my current employer is that he uses all our combined Corporate Amex points to buy Christmas gifts for our hourly production workers each year. I keep my Expedia points from my hotel stays, currently at about $700 worth of free stays.
Old 02-10-2018, 08:26 AM
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Originally Posted by mikefloyd View Post
Assuming you own the business I see no problem with you deciding. Technically the points would be property of the business and technically if you used them it should be reported as income to you. But from a reality standpoint it's a non-issue.
Incorrect. IRS has said it's not income.
Old 02-10-2018, 08:27 AM
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Mil in points

I typically roll up 150k points with one card. I pay everything with that card.

Usually get 10+ $100 Bank Master Cards with the points. Save em for boating season helps pay for fuel and booze and such. Got over 50k points sitting in arrears as we speak.
Old 02-10-2018, 08:28 AM
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Originally Posted by billinstuart View Post
It appears we, as businesses, can add the cost of using a credit card to the cost of the item. This can run 2-3%, to cover the cost of the "points" you get.
Yep.. I absolutely love it when a customer comes in and tries to negotiate me down on the price of an item and them thorws out a "rewards card" and says "I'll use this card because I get airline miles"
Most don't understand that I'm paying for their airline miles..
Old 02-10-2018, 08:30 AM
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Points or cash back awards on a corporate owned card are owned by the corporation and should be reflected as a reduction to cost of sales, no different than any other rebate. If they are passed on the the employee then they are taxable to the employee.

The service's view on personal cards is that points are merely rebates and miles, whether on a corporate card or not, can revert to the flyer. Rebates are coming under increasing scrutinity in the merchant market and there are several lawsuits challenging them indirectly through the merchant fees charged alleging antitrust.

Curious as to what the accounting entries are currently being used to balance the corporate books.
Old 02-10-2018, 08:32 AM
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Originally Posted by rickboat View Post
Incorrect. IRS has said it's not income.
In the context of a corporate owned card the IRS has never to my knowledge said such thing. Flyer miles, yes.
Old 02-10-2018, 08:34 AM
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Originally Posted by jj1987 View Post
Yep. Some gas stations do that. I'll avoid them unless the discount exceeds the value of the points to me. I usually value points at 2%, or 3% if I've hit my airline status goals for the year and switch cards.

For me, I'll gladly eat 3% to not have to chase invoices and keep my freelance customers on auto bill. If I were a bigger company with a person dedicated to invoicing I think I would change my stance on that.
They use an "interchange" rate for cards. Some vendors like grocery stores get a really low interchange rate, and most card servicing is based on a percentage (we are 0.3 percent) plus the interchange rate. Some vendors pay much higher interchange, like up. Interchange rates vary from 0.0 (debit cards) to as much as 4%.

so how does cube do 2.5%? Averages. Typically servicing runs maybe 1-2%.

In our business, $6000.00 charge isn't unusual. At 2-1/2% that's a big number for use to take a card.
Old 02-10-2018, 08:35 AM
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Not very efficient to have employees basing corporate travel and purchasing decisions on credit card points instead of cost and efficiency.
Old 02-10-2018, 08:38 AM
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We have used ours for airline tickets and gift cards for personal use. My family owns the two business and its our names on the cards.

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