MilesBuzz! - What happens with corporate miles?

With more and more companies, and even governmental bodies, making bigger and bigger credit card purchases all the time, I can't help wonder, what happens to the miles?

My company is very small, and many of its miles go to fund my personal Fl-IRA, but what about big companies? What about your company's miles? What happens to them?

I was under the impression that corporate cards net the corporation a vendor discount worth more than, and not available with, a mileage-earning credit card.

What kind of discount?

Are you saying that Corporation "Y" buys a product from Corporation "X" for $10,000.00 and the credit card company pays Corporation "X" $10,000.00, but only charges Corporation "Y" $9,800.00?

If the merchant fee were 3%, yes. The credit card company makes $300 on the charge and gives back $200 of that to the purchaser in exchange for getting the credit card business.

Maybe that is not the precise mechanism, but I do know that my employer says that we have to use the corporate card for business travel in exchange for vendor discounts.

It can't be the usual airline corporate discount, because that is reflected in the charge amount regardless of how you pay. Or maybe the two are the same and the expense people are pulling the wool over my eyes and making me use their card for no reason. :mad:

I think I would rather have the miles. :D

In our industry (tradeshows and exhibitions) exhibit managers used to be able to rack up hundreds of thousands of miles/points a year using their own AMEX or VISA for travel expenses, shipping, drayage, and labor, and thereafter being reimbursed by their company. Very lucrative! After the economy tanked, most corporations gave their employees a debit card, which was paid by the company, with the miles going to the company and thereafter used to offset tradeshow travel expense.

Since I am the boss, I still get to decide what to do with our miles. We do use some for very expensive last minute travel, some are used for employee gifts and/or bribes, ;) and the rest are for me. :D

I hate to bring this up, but many corporate cards *don't* earn miles. So there are no miles in the equation for them. Some may give a bit of cash back, or other points for purchases, or nothing at all in many cases.

Maybe, Jaimito, that is a good thing. If huge companies were getting millions and millions of miles and points it might break the system. Then on the other hand, maybe the system is already broken.

here's a twist on corporate credit cards and miles:

http://www.zevez.com

Thanks, Randy.

Do you have any personal experience with this program? Do you have an opinion?

Bank of America offers a business card. We have one, but it drives me crazy because I can't access on my premier statement, so I end up using my deck of personal cards. I do alway trying to diversify as much as possible, in the event that a program goes under.

Diversification is a good way to reduce risk.

Oh yes, SPN Lifer, I know. Sitting there with several million UA miles on the day they filed bankruptcy was very, very painful. We are, however, still rooting for UA and going for our Million Mile Status.

Our credit card purchases do, however, go to other airlines/programs.