Small business credit cards are considered a necessity for most small businesses. They use them for many purposes from gasoline purchases for company vehicles to purchases used for airline tickets, entertaining prospective clients, and many other reasons. Many small businesses in the United States are concerned because of changes that have taken place recently.
These changes, they claim, are due to the new credit card law, Credit Card Accountability, Responsibility & Disclosure Act. Since this law went into effect, small business owners are complaining that their small business credit cards have experienced some very negative effects, such as higher interest rates. On an average small business credit card interest rates have increased by 30% since January, 2010. In contrast, individual consumer credit cards have increased only 16% since that time.
Small business credit card holders also say that they are not being treated fairly since they are often expected to pay their bills within 14 days after they receive their bills, which is very close to the purchase date of the merchandise that they bought. Small businesses used to have 25 days to pay after their small business credit card bill arrived. In addition, late fees have been raised for small businesses from $29 to $50, whereas individual consumers are protected by the new law. The largest late fee that they could possibly pay is $25. Individual consumers also get 21 days after their bill arrives to pay.
Credit card companies do offer some very attractive small business credit card packages to small business owners with excellent credit. One of these is the Chase Ink Cash Business Card. This card offers three percent cash back on office supply purchases. There is a point system as well each time that the business owner buys at $100 back on the first purchase that is 10,000 points. Purchases have point values, depending on the amount of purchase, and there is no limit to the points that can be earned. The Introductory APR is 0% with no annual fee, and the regular APR is 13.24% variable annual fee.
Capital One Business Platinum With No Hassle Cash offers a small business credit card as well with 0% APR, no annual fee, and one percent cash back on all purchases in a particular category that the business owner chooses, such as office supplies. An itemized year-end summary of purchases is provided that is helpful in double checking purchases that have been made. Also, Capital One offers free fraud protection if the card is lost or stolen. Employee credit cards are also offered with no annual fees.
This company offers several types of small business credit cards that are adaptable to a small business owner’s needs. Another is Capital One Business Platinum with Preferred No Hassle Miles. This card is targeted at small businesses with frequent travel expenses. When the card is used for airline ticket purchases, the owner receives three miles per $1 spent in a category where they spend the most money, such as office supplies or airline travel. All other purchases receive one mile per $1. The airline miles can be redeemed for cash, gift cards, or travel.
The Citi Business/AAdvantage Card offers small business credit cards that will give the small business owner 30,000 American Airlines AAdvantage bonus miles when the card is used to purchase $750 worth of goods within the first four months after opening an account. There is no annual fee for the first year, and card holders earn one mile for every dollar spent. Business owners can also accumulate miles from employee cards. Applicants can get a response from this company concerning their acceptance within 60 seconds of applying.
