community magazine CAI community magazine December 2017 - Page 14

X By Heather J. Karamitsos Your Association is prohibited from using a debit card. Now what? As of July 1, Florida Statute Section 718.111(15) of the Condominium Act provides that an association and its officers, directors, employees and agents may not use a debit card issued in the name of the associa- tion, or billed directly to the association, for the payment of any asso- ciation expense. In short, this means that community associations must now use a credit card instead of a debit card for association expenses. But, not all associations have made the switch, whether it’s because they aren’t aware of the change, don’t understand the risks involved with contin- uing to use a debit card, or aren’t sure how to find the right credit card for their needs. The following are key considerations to keep in mind while navi- gating this important regulation change. X Benefits of the change Director of Association Banking, American Momentum Bank hkaramitsos@americanmomentum- 239-653-7389 14 Using a credit card for community association purchases provides greater transparency and security than using a debit card. For example, when a purchase is made using a debit card, the money is immediately deducted from the account; whereas, with a credit card, board members and community association managers (CAMs) can review purchases line by line on a monthly statement be- fore making payment. This gives leaders an opportunity to dispute any illegitimate charges and confirm all purchases are pertinent to the association prior to paying for them. In addition, credit cards are more secure than debit cards. It’s community • December 2017 WWW.CAIWESTFLORIDA.ORG