Business expenses – why do they care?

[tontoro]

It’s a shame we cannot put business expenses through personal cards, but why does Barclaycard care anyway? They get their processing charges, so what’s the big deal?

[jj]

1. Money laundering risk.
2. Potential issues around enforceability of the debt, as, for a limited company, the business is a separate legal entity.
3. Credit risk is assessed very differently for businesses and individuals.
4. Usage patterns may undermine profit models.
5. Product substitution: higher interchange fees will apply if they persuade you to use a business card.

There are probably others, too, but the list is a good starter.

[Rob]

5. You are fraudulently covering your purchases with Section 75 insurance, which only applies to purchases made in a personal capacity
6. Interchange fees are only capped for personal card transactions. Purchases on B2B cards are far more lucrative to card companies.

[tontoro]

Thanks, that’s interesting. Do all card providers care, or are some more lax?

[memesweeper]

tontoro wrote:

Thanks, that’s interesting. Do all card providers care, or are some more lax?

Creation, for instance, were clearly exceptionally lax a few years ago. If I knew of another provider that didn’t care, I’m not sure I’d call it out on an internet forum.