A business credit card buffers exposure to receivables, tracks spending and enables you to separate business from personal finances. Business credit cards often have rewards programs that appeal to the needs of business owners. You can issue cards to employees to streamline business-expense processes. However, if you don’t choose wisely, you might wind up with a new business credit card that takes advantage of the fact that the Truth in Lending Act and the Credit CARD Act of 2009 do not apply to business credit cards.
Issuers of business credit cards can legally charge you more than $25 in late fees and give you less than three weeks to pay your bills. It is also well within the law for business credit card issuers to raise the interest rate on previously accumulated balances. To better understand business credit cards, please read our articles about business credit cards and reviews of The Business Platinum Card® from American Express OPEN, The Business Gold Rewards Card from American Express OPEN, and The Plum Card® from American Express OPEN.
Business Credit Cards: What to Look For
Business credit cards are not the same thing as consumer credit cards. For that reason, we have suggestions in a number of areas to help you compare business credit cards and help you find the best credit cards for your company.
Terms
Of course you should always pay off the balance of any credit card every month, but credit cards are marvelous safety valves for cash-flow crunches. Don’t get teased into an attractive introductory interest rate while the actual rate waits in the wings to make an unannounced appearance. To make an informed decision, find out when the introductory rate expires, whether the rate is fixed or varying, and understand the late fee and over-limit fee. Then, monitor your behavior accordingly.
Features
Small business credit cards often include business-related features such as the ability to track expenses online according to commonly accepted business categories, expense management reports and QuickBooks integration. Some let you enroll in office-supply and business-related savings or rewards programs. Some provide various protections against identity theft, fraud and employee misuse.
Benefits
Some banks reward your use of the card by giving you points that you can redeem for goods and services or cash.
If they don’t come at too high a price in terms of annual fees or higher interest rates, you might be attracted to benefits that can include auto rental loss-and-damage insurance as well as purchase protection in case of loss, fire, theft, damages or price depreciation. Some providers offer advanced benefits such as access to exclusive events, hotel amenities and air travel upgrades.
Customer Service
In addition to online access to manage your account, make sure you also have access to customer service via telephone.
Company credit cards are a convenient way to maintain the separation that will help you when it comes time to prepare your tax returns. Your CPA will thank you for separating your personal and business finances, and may charge you less. The benefits and rewards associated with business credit cards are intended to be helpful to business people. However, realize that the legal protections for consumer credit cards do not apply to corporate credit cards. We sincerely hope that our reviews will help you select the best visa for your business with speed and confidence.