who pays the annual fee on a business card?

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who pays the annual fee on a business card?

Postby Money card » Wed Sep 28, 2011 9:45 pm

Not a small business or corporate card. but a personal card that a employee uses for business?

for example, anybody that has any of these cards like the American express platinum, the Gold, gold rewards, green, any of the Deltas, the chase Sapphire preferred, the Ritz Carlton, any expensive card. who pays the annual fees for these credit cards? I know these are personal cards, not company cards but when was the last time you stood in line at bed bath and beyond and saw somebody ahead of you using a Delta reserve or at the gap seeing somebody using a ritz carlton visa?

I'm curious who pays the annual fees for personal credit cards that are solely used for business?

I'm sure there are places away from business where somebody will use a delta reserve, like Nordstroms, so it might not solely be used for business. But mostly used for business?


sdoonan
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Postby sdoonan » Thu Nov 03, 2011 9:18 pm

A personal credit card I believe is paid by the user. Only a business/corporate card is paid by the business.
Cards I Carry:

Visa: CitiForward Student (1k CL, 15.24%), Capital One Student Journey Rewards (.5k CL, 19.8%)
Discover: More Student (1k CL, 17.99% regular, current rate 1.9% through 3/6/12) (Primary card at this time)
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Pete838
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Postby Pete838 » Sat Nov 05, 2011 12:56 pm

I'm not sure I follow your question. Just because someone is using a Ritz or Delta Reserve card doesn't mean it is a business card, though several of those cards have a business version

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If the card account bears the businesses name, then the business would in all likelihood pay the annual fee as a business expense, and if it is a personal account then if the cardholder also owns a business and uses the card primarily for business, they could expense the personal card annual fee to the business as well. The CC issuer doesn't care who pays the bill, as long as it is paid.

I have a couple of personal cards with an annual fee; expensive cards, if you will. I use mine 90% for personal payments, and maybe 10% for reimbursable business expenses .
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naomibatac
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Postby naomibatac » Wed Nov 23, 2011 3:01 am

If the card was issued to a business then the business pays for the annual fee and if the card is issued to a an individual, that individual pays for the annual fee. These expensive cards whether issued for business or individual can be used anywhere it is accepted whether for business or not.
[size=60]I don't have any relationship to the credit cards or companies discussed here. I am solely a regular member of this forum with no direct financial rewards from this site. My opinions are solely mine.[/size]

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Postby Money card » Fri Nov 25, 2011 2:04 am

same as a corporate card and small business card whether used for business use or personal use they are accepted everywhere.

so what everybody's saying the Delta reserve the Ritz carlton the annual fees get paid by the cardmember instead of the corporation on the personal card. or any credit card that has an annual fee.

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Postby JNK » Fri Nov 25, 2011 8:40 pm

Business B applies for a Business Credit Card. They pay the annual fee.

Person A applies for a Business Credit Card. They pay the annual fee.

It's rather cut and dry unless the company point blank tells you, "Apply for whatever card you want and we'll pay the annual fee despite the fact that we don't use the card / own the card ourselves."

Why would the business pay for your choice of card which includes an annual fee if they themselves didn't apply for / want the card?
Personal Collection:

AMEX: Everyday (MR), Macy's (cobranded)
MASTER: Citibank Dividend Platinum Select (non-World version)
VISA: Chase Amazon Signature, Chase (bank issued)
GE: Care Credit (medical expenses), Macy's (store), JCP (store)


Business Collection:

AMEX: Costco True Earnings
MASTER: None
VISA: Chase Ink Cash

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Postby Money card » Sun Nov 27, 2011 1:20 am

JNK wrote:Business B applies for a Business Credit Card. They pay the annual fee.

Person A applies for a Business Credit Card. They pay the annual fee.

It's rather cut and dry unless the company point blank tells you, "Apply for whatever card you want and we'll pay the annual fee despite the fact that we don't use the card / own the card ourselves."

Why would the business pay for your choice of card which includes an annual fee if they themselves didn't apply for / want the card?


I will answer that years ago back in the 80's towards the late 80's, my father traveled on business he had an American express card, the personal level. he told me that the company paid his annual fee. But as i'm sure as you are thinking, visa and Mastercards had annual fees also. but American express had higher fees.



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