On the brink of National Small Business Month approaching in May, noted credit card comparison site CardHub has released its 2015 Small Business Credit Card Report. Released annually, the study surveys the most and least small business friendly credit card companies.
A few highlights from the report are as follows:
• All major credit card companies hold customers personally liable for business credit card use. Also, every major issuer uses personal credit data to determine business credit card eligibility.
• Bank of America continues to be the most small business friendly credit card company, as it is the only major bank to have yet extended all of the major CARD Act protections to its business-branded cards.
• Discover, U.S. Bank, and Wells Fargo are the least small business friendly credit card companies, having extended the fewest CARD Act protections to their business-branded cards and scoring just 30% in this study.
Other sites such as Credit Cards.com encourage small business owners to
factor in interest rates, cash-back rewards, foreign exchange fees and
universal defaults when selecting credit cards for their businesses.
According to the CardHub report, one criticism of credit card issuers is the manner in which they deal with their cardholders who own small businesses. Although 37 percent of these business owners use credit cards for most of their business transactions, “they are not afforded the ban on arbitrary interest rate increases on existing debt.”
The full report can be found on CardHub’s website.