What Are The New Preload Limits For Business Credit Card Accounts ?

[trajan]

I seem to recall new regulations being brought in a few years back to prevent people squirrelling cash away in credit card accounts with large positive balances.

But common sense has to come into play too.
I mean, if a sales manager has to go to S. America to establish new suppliers and other contacts over a period of ~ a month then he/she has to have some ready access to cash for travel/hotel/meal/etc expenses.

Still, even business credit cards would have some limits to positive balances.
Does anyone know what preload limits apply to business credit card accounts in such situations ?

 

[ClubMan]

I seem to recall new regulations being brought in a few years back to prevent people squirrelling cash away in credit card accounts with positive balances.

Never heard of this - what would be the rationale for such legislation if it exists at all?

 

[trajan]

Never heard of this - what would be the rationale for such legislation if it exists at all?

It need not be legislation. It can be just new regulations for existing legislation.

Simply a preventative measure against income hiding and/or tax evasion.

I think it was among a raft of measures thrown up after Gilligan was found to have hidden a share of cash in things like card accounts, bookie's accounts, etc. Was there something about buying bank drafts also - you have to specify a receiver and purpose or something like that. I think George Redmond's carry-on was what prompted that one.

 

[ClubMan]

How would money on a credit card be any more hidden than if it was in a bank account?
Doesn't make sense to me.
And I can't find any evidence of such legislation.
The Consumer Credit Act would surely be the likely place for such measures and I can't see anything there.

 

[trajan]

As I said earlier it need not require new legislation to effect this change, it only needed new regulations which the Revenue Commissioners already had the power under existing legislation to bring in.

How would money on a credit card be any more hidden than if it was in a bank account?

Well, that was the thing, wasn't it.

While tax officials theoretically had the powers to to go wherever, in practice they only went to the 'usual suspect' hideouts used by people putting money to keep. You gained no interest in a credit card account so they may have thought it unlikely to be a cache for hidden money. Back around 20 years ago there was also a trend of people making big purchases like cars with a credit card so as to gain big points benefits from their card. Then there was also no danger of your CC account going too far in the red if you preloaded it.

I suppose bookie's accounts were a bit too pleb for members of the Irish Civil Service so they mightn't even considered it till Gilligan's tax case showed their potential as hideaways.

 

[ClubMan]

As I said earlier it need not require new legislation too affect this change, it only needed new regulations which the Revenue Commissioners already had the power under existing legislation to bring in.

I can't find any evidence of any legislation or other regulations in this context.

 

[trajan]

Let me get a low-down from my CC company and I'll return here.

 

[ClubMan]

My personal PTSB credit card terms and conditions say nothing about any limit on positive/credit balances.

Why would restrictions in this context only apply to business cards?

 

[trajan]

Why would restrictions in this context only apply to business cards?

Apply only to non-business credit cards, you mean.

Presumably because the preloaded cash would be legitimately disposed of within a short time after deposit and all disposals would be traceable. Plus recognition of the operational requirement of businesspeople travelling in countries outside the sphere of their business bank to have ready access to money for the efficient conduct of their business affairs.