Is letting someone else use your credit for their business and having them give you cash legal????

Question

My boyfriend has a restaurant delivery business. He uses my credit card to purchase all of his goods that he then in turn sells to his vendors. He gives me cash to pay me back for the credit card purchases. I deposit the money in my bank and them use that money to pay off my credit cards. Some months it can add up to quite a bit of cash. Is this in any way illegal? I have recipts for all of his purchases and he has all his reciepts from his customers.

Answer 1

It is called "cash flow".  He can make a profit in his business but he can only do that if he can afford to buy the materials that he resells.  You are allowing him to purchase the materials with your "money" because that is what a credit card is ..... money.  Perfectly legal unless you find that his "material" is marijuana.  Is it. /

Answer 2

Check your Credit Card Terms & Conditions (I expect they can cancel your card if they find out you have allowed some-one else to use it).

NB. He's doing this to avoid any 'records' of the buying (& selling) appearing in his name  .. most likely to avoid Tax .. and (needless to say) since all that cash is going through YOUR accounts, sooner or late the IRS is going to come knocking on YOUR door ..

Answer 3

Just be wise, as i read in the source below that one needs to be careful in handling credit/debit cards.