Can I use a corporate credit card for personal use?

A corporate credit card differs from conventional credit cards in that it is primarily used for business transactions. Therefore, the private use of a corporate credit card is usually prohibited. Violation of the terms of use can have serious consequences and, in the worst case, even lead to dismissal.

Corporate credit cards offer a wide range of applications aimed at efficiently handling business transactions and expenses. This includes paying invoices, purchasing office supplies, paying service providers, and covering project-related costs. Corporate credit cards are often used for travel expenses and simplify the expense reporting process significantly. Business expenses are charged directly to the card, and transactions are automatically recorded. Additionally, the card can be used to purchase goods and services necessary for the smooth operation of the company, such as office furniture, technological equipment, and inventory.

It is important to note that a corporate credit card is primarily intended for business purposes. Employees should always ensure that private and business expenses are clearly separated and that all transactions are properly documented to ensure transparent bookkeeping.

Generally, private use of the corporate credit card is not permitted. Exceptions only apply if they have been clearly communicated and documented in writing by the company beforehand. Violating the terms of use of the corporate credit card can result in legal consequences and, in the worst case, dismissal.

If you misuse the corporate credit card for personal expenses, various consequences can occur. Depending on the severity of the misuse, this can range from a warning, repayment of the private expenses, to the termination of your employment.

The company is typically liable for every transaction made with the corporate credit card. However, in cases of gross negligence and violation of the terms of use that can harm the company intentionally, the employee is liable for the damage.

If the terms of use are clearly defined and the corporate credit card is not available for personal use, the employee commits a serious breach of the duty of care according to § 241 Abs. 2 BGB (German Civil Code). This law obliges the contractual parties to take appropriate account of the legitimate interests of the other contractual partner. A violation of this law may entitle the employer to terminate the employee without notice and without a warning.

In some severe cases, unauthorized personal use of a corporate credit card can even be considered fraud or embezzlement. Fraud offenses can be prosecuted criminally, which may result in the imposition of a fine.

Most companies have clear guidelines on how the corporate credit card may be used. These rules can vary from company to company. Therefore, it is crucial to review the usage agreement of the corporate credit card at the beginning. If no clear usage agreement is available, get written information from your company on how the card may be used. This can prevent misunderstandings and legal consequences.