using the company credit card on personal expenses. Very obvious - clothing was bought. We attached this person to our account and gave them a credit card under their name. We did this to make purchasing for us easier but only for business not pleasure. The employee cannot be found. Are we liable for this money or is it considered fraud/stolen?
Mostly likely both. It is fraud, but you are most likely still liable as the employee stole from you - not them. You can try working with the credit card issuer, but they tend to stick you with the bill in cases like these. Hopefully your business has insurance. I know for a fact that any employee dishonesty policy would cover this, and many blanket BOPs (business owner policy) do as well. If you have any kind of business insurance, I'd call your agent ASAP. Good luck, HDAlex
thank you thank you thank you. I have a ton of insurance - at first look it looks like I'm covered - never thought my poilcy would cover stuff like this...all the premiums I've paid over the years finally may have paid off Thanks again for the advice.
Couldn´t you say that the card was cloned or lost/stolen. They ever say about the 0 liability or the $50 max liability.
I know I just got the terms for my AmEx business card, and it says that all persons are liable for the bill, not just the company or just the employee - IF I gave someone a business credit card to use (never happen) and they used it for personal expenses, it would be my problem, not the card company's. I would go file charges against this person so that when they are found, they can be prosecuted. I think $3,000 would make it a felony in my state. I imagine your insurance agent will tell you to file charges, also, or the policy will not cover the loss.
