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Business credit card for private expenses

More and more entrepreneurs and employees use their business credit card for personal expenses, especially during business trips. This is according to a study that business travel organization Carlson Wagonlit Travel (CWT) had done in 2018. No fewer than forty percent of business travelers worldwide admit that they can also use the business pass for private purposes.

In the United States in Europe, the number of travelers who ‘mix up’ business and private life is the highest. In both cases this percentage is 46 percent. In Asia-Pacific, this is 28 percent. It should be mentioned here, however, that doing a personal spending with a business credit card is approved by a considerable number of companies, CWT reports during the investigation. In Europe, 42 percent of companies do not find this problem, in the US 37 percent and Asia-Pacific 31 percent.

Private card

credit card

It is therefore not clear from the CWT study whether the mixing of business and private matters only relates to companies that have prohibited this. Conversely, according to CWT, business travelers also use their private credit card for business payments. The business travel organization that commissioned the investigation has no percentage of this.

Many business travelers take a credit card in the name of their company when they go abroad for work. This is 67 percent in Asia-Pacific, 61 percent in North and South America and 56 percent in Europe.

Travel managers of companies must tackle the misuse of business credit cards

Travel managers of companies must tackle the misuse of business credit cards

That’s what Christophe Renard, Vice President of CWT Solutions Group, says. This is the consultancy branch of Carlson Wagonlit Travel. “They also have to find out why travelers do not simply comply with the rules.” However, the CWT study shows that in most cases this happens ‘normally’: the enforcement percentage for checks is above 85 percent worldwide.

Solution

According to Renard, the frequent mixing of business and personal expenses also says something about the companies in question: “The use of personal credit cards for business expenses means that companies find it difficult to gain insight into these expenses. And that immediately makes it a lot harder to enforce a policy. “Companies could reduce the use of personal credit cards for business payments:” If companies do not want to provide credit cards to their traveling employees, which is understandable, offering virtual credit cards a good alternative. As a result, travelers do not have to use their personal credit cards for business expenses. This also gives companies an accurate picture of what their money is spent on. “