Credit Card Points

[GeorgiaAgent]

A company that I represent suggested that I take a payment from a client in office (cash) and use my business credit card to make payment to them.

Is this legal?....if it is, I would love the extra points on my card.

Thanks for the responses.

 

[djs]

All depends.
Your contract with the carrier may prohibit this, which is the first place to start. Many don't, and they may not care. Some may not specifically prohibit it, but they discourage it.

If you are submitting money for clients, you should have a separate trust fund that is used specifically for this purpose. This is pretty common in the P&C world, less so in life and health.

My biggest piece of advice is if you take cash from clients is to have a double signed reciept (both you and them) for the amount and the date/time. This will avoid confusion in the future.

Also, I'm assuming this has nothing to do with securities. Never, ever take cash for any securities related sale.

Dan

 

[patch36]

Make the client buy a money order if they do not have checking or a credit card. Do not take cash. It isn't just securities that money laundering is illegal.