rocket finance

The Ethics of Rewards Credit Cards

Recently I was faced with the following situation:

While on a business trip that required the use of two, 15-passenger vans, I discovered that we were going to need more gasoline if we were going to finish the trip without having to stop by the side of the highway. It just so happened that the only card I had with me was my personal 3% cash back Chase Freedom Card. We were approximately 50 miles from our destination and since there was some gas already in the tank, we only needed $20 worth of gas in each van. I did not have a corporate card with me, so I was forced to use my personal card.

Now, I knew that I would be reimbursed for the expense, but my ethical dilemma was whether or not I should completely fill up the tanks. I knew that I would be reimbursed either way, but the vans did not need $100 worth of gasoline. Both gas tanks would have allowed me to pump that amount – and I was using a card that would give me $6 back after filling both vans with $100 worth of fuel. If I only put the required $40 total, I would only get $1.20 in cash back. $6 or $1.20 don’t seem like a whole lot, but many folks make a whole lot  more purchases on behalf of their companies than I do. The rewards could really add up over time.

Some questions:

Who gets the cash back?

Am I under an obligation to tell my employer about the reward?

What if I purchase items for my job through ebates? Can I keep the cash back that is generated?

Is the answer different if my employer is a non-profit organization/charity versus a corporation?

Is the answer different if I am earning points or miles instead of cash?

Is it wrong if the cash/rewards credit cards motivate me to spend more money than necessary solely because I know I will be reimbursed and higher spending will put cash in my wallet?

Should I have used a 5% cash back card instead?

Are situations such as this common in the business world? I have no direct knowledge, but I have heard of individuals earning frequent flyer miles through business use and then turning around and used the mileage earnings for personal use. Obviously if a corporate cash back card were used, the rebates would belong to the company. My thought is that cash/rewards might motivate employees to spend more than necessary solely because they know they will be reimbursed for the receipt price and get to pocket the cash back. Do companies have policies about such things?

Which choice do you think I made in the anecdote above?