community magazine CAI community magazine December 2017 - Page 15

more difficult to file a fraud claim and recoup money on a checking account than it is to report fraud on a credit card. Also, association credit cards place no liability for fraud on individual board members – unlike debit cards, which provide less protection for fraud. X Risks of non-compliance Also included in the recently amended Florida Statute Section 718.111(15) is the stipulation: The use of a debit card issued in the name of the association, or billed directly to the association, for any expense that is not a lawful obligation of the association may be prosecuted as credit card fraud pursuant to s. 817.61. It is absolutely in CAMs’ and board members’ best interest to comply with the new rule as soon as possible. Continuing to use a debit card opens CAMs to risks that could jeopardize their licenses and put board members at risk of fraud charges. For example, if a board member purchases something on a debit card and the board later says it wasn’t an approved expense, that board member could face prosecution for fraud charges under that Statute. X Finding the right credit card When it comes time to find a credit card to replace your debit card, it is important to remember that not all credit cards are created equal. Rather than going to the household names recognized through TV commercials and on street corners, community associations should specifically look for a nonprofit – or, even better, an association – credit card. Banks that specialize in Association Banking work with contractors to design credit cards specifically for associations. A credit card developed for associations will ensure that, during the application process, credit is not pulled on the individual board members, but rather the association itself. Also, an association credit card puts liability on the association, not current and former board members. Only credit cards specifically for nonprofits and associations will provide this kind of protection to individual board members. Also, when completing the paperwork for the credit card, board members need to make sure they’re not personally signing for any debts on that car BF2vV7W&RFfGV&&BV&W'2&V( @Ɩ&Rf"766F6&vW2FR&W6VBF"FvFR&Bv7F6ǒ7Vr6VG766F26fB766F7&VFB6&G2vFfVGW&W27V62vrf"fW&ƗGFW6vBЦr7VFrƖ֗G2FFfGV6&FFW'2BvfVg&WVV@6vVfW"r766F&&G27&VFB6&BFBffW'2V7&6W72f"vr&&B6vW'26&R&V&VVfBfǒVW֖BFB6rf"766F7&VFB6&B0BFR6R26rf"W'66&B7&VFB6&G2FBffW &ƖR֖W2BFW"&Wv&G26VF( B&R66FW&VBfW"FW'266R&&BV&W'2&RVvǒ&&FVBg&&VFVV֖rFW6PG2b&Wv&G2FR&V6VFǒVFVBf&F7FGWFR6V7FsR6W0'GVGf"6VG766F2F&fRG&7&V77&V6R6V7W&GBFV7&V6RƖ&ƗGf"&&BV&W'2vP7B6vW2&WV&R6RFVw&VRbF66f'BfFrFR&v@7&VFB6&BF&W6RW"766F( 2FV&B6&BvRf"6FG&6FB&fVBf6vVVBFRV'0F6Ruur4tU5Dd$D$p6VG( "FV6V&W"#pF( Bǒf W7B7&VF@6&Cf &fB 766F7&VFB6&BFW6vV@7V6f6ǐf"766F( 0VVG2P