Advanta Will Release A New, Small Business Credit Card with PayPass Technology Next Month

It was back in October of 2005 when we last posted about Advanta business credit cards here at www.BusinessCreditCards.cc. We reported that the Advanta Platinum BusinessCard was, at the time, the business credit card (with no annual fee) that beat its competitors in the lowest annual percentage rate (APR) category.

Today, we have some more Advanta-related news: Advanta will be launching a new small business credit card in September, and it will be the first MasterCard® small business credit card that utilizes the nascent PayPass^TM contactless payment technology.

Some of you may already have a credit card with contactless technology. Basically, the technology works by using a tiny RFID chip that's embedded into a credit or debit card that allows the cardholder to simply wave the card past a terminal to pay for items or services. No contact between the card and terminal is necessary so, as you can imagine, using a card with contactless technology can make for some very speedy checkouts.

I recently got a new Chase debit card that features the Blink^SM contactless payment system; I've used the contactless feature on numerous occasions, as I'm a bit obsessed with efficiency these days. Certain nightclubs in Europe are implanting RFID chips into the hands of their VIP customers. Would I accept an RFID implant if it was offered to me? Probably!

FYI: you can use a PayPass card at a Blink terminal, and vice versa. American Express® has their own contactless system called ExpressPay^SM.

Chase has a cool presentation of their Blink system here.

For more about Advanta's new small business credit card with PayPass technology, here's a clip from today's press release:

"MasterCard Worldwide and Advanta Corp. (NASDAQ: ADVNB; ADVNA), one of the nation's largest issuers (through Advanta Bank Corp.) of MasterCard business credit cards to small businesses and business professionals, announced today that they will begin issuing the PayPass^TM-enabled Advanta MasterCard® Small Business card in September. This marks the first small business credit card to be equipped with PayPass contactless payment technology. This new small business card can help small business owners and business professionals keep track of their business expenses, while offering the speed and convenience of PayPass' 'tap and go' functionality when making purchases at participating merchants.

'The new Advanta MasterCard Small Business credit card with PayPass will deliver immediate benefits to small business owners who routinely find themselves constrained for time and juggling multiple priorities,' said Dennis Alter, Advanta's Chairman and CEO. 'With PayPass their purchasing experience will be quick, easy and safe, allowing them to spend more time focused on their business.'

The new card combines the worldwide acceptance of the existing Advanta MasterCard Small Business card with the added functionality of PayPass contactless payments. This technology allows customers to simply tap their PayPass-enabled Advanta business credit card on a specially-equipped terminal that utilizes a radio frequency (RF) chip to complete their transaction at participating retailers and restaurants. Payment is processed quickly and easily without the hassle of swiping a card, fumbling for cash or signing a receipt. Moments after a customer taps the PayPass-enabled business card, account details are communicated to the terminal and then processed through MasterCard Worldwide's secure network for clearing and settlement.

'When MasterCard developed this technology, its benefits were most easily associated with simplifying transactions for the everyday consumer. But it has become very clear that the small business owner can benefit from PayPass just as easily,' said Ann Camarillo, executive vice president, MasterCard Worldwide. 'Now, small business owners will spend less time standing in line and more time on what it takes to successfully run their business.'

As of Q2 2006, there were nearly 10 million PayPass cards and devices in the market and approximately 32,000 merchant locations around the world that accept PayPass, including McDonald's, 7 Eleven, CVS, Duane Reade, Sheetz and Regal Entertainment Group. Interest in PayPass has not been limited to retail establishments. PayPass technology has proved popular in sports facilities as well, and PayPass is now accepted in many Major League Baseball and National Football League stadiums as well as at numerous golf events.

In addition, Advanta is working with MasterCard to identify the merchants that small business owners do business with in order to grow acceptance of contactless payment cards. The Advanta MasterCard Small Business card includes the traditional magnetic stripe technology and can be used at the over 24 million MasterCard-acceptance locations around the world.

About Advanta

Advanta focuses on the small business market and related community, providing funding and support to the nation's small businesses and business professionals through innovative product offerings and services. Using its direct marketing and information-based expertise, Advanta identifies potential customers and provides a high level of service tailored to the needs of small businesses. Advanta is one of the nation's largest issuers (through Advanta Bank Corp.) of MasterCard business credit cards to small businesses and business professionals. Since 1951, Advanta has pioneered many of the marketing techniques common in the financial services industry today, including remote lending and direct mail, affinity and relationship marketing."

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Massachusetts Sales Tax Holiday Snubs Business Credit Cards!

If you live in Massachusetts, or plan on being in the state this upcoming weekend, then you should plan on doing some shopping. That's because Massachusetts is having a Sales Tax Holiday Weekend on August 12-13, 2006.

This coming weekend, you can buy tangible, personal items from retailers in the great state of Massachusetts and pay no tax on each item, as long as each item costs $2,500 or less.

The bad news is that there are a number of restrictions, one of which is that you can't use a business credit card if you want to take advantage of the tax-free weekend; you can't use a business check either.

Nevertheless, the tax-free weekend is still an excellent opportunity to save some money.

More details from Saturday's press release:

"The Commonwealth of Massachusetts will not be collecting sales tax on tangible personal property sold by retailers to the general public at a price of $2,500 or less during the sales tax-free weekend.

Here’s an overview:

• A single item, not exceeding $2,500 maximum, will be sales tax-free.
  
  
• When more than one item is purchased at the same time, and each item has a price of $2,500 or less, then all of the items may be rung up on one receipt and all items are tax-free.
  
  
• Bundled items, such as computer packages that include computer, monitor, keyboard and printer in a single sales price only qualify for tax exemption if the price of the entire bundle is less than $2,500.
  
  
• Prior sales and lay-a-ways do not qualify under any circumstances. The sale has to be generated during the tax-free weekend to count.
  
  
• Business purchases are excluded, which also means any purchase made with a business check or business credit card.
  
  
• Special order items such as furniture are eligible for the sales tax holiday so long as they are ordered and paid in full on the sales tax holiday weekend, and the cost of each item is $2,500 or less, even if delivery is made at a later date.
  
  
• Motor vehicles, which includes ATVs and small motorcycles are excluded.
  
  
• Motorized boats are excluded, but non-motorized boats such as canoes and kayaks do qualify for the sales tax exemption.
  
  
• Car and boat rentals are considered services and do not qualify, but golf carts are eligible because they are not considered motorized vehicles.
  
  
• Meals, telecommunication services, gas, steam, electricity, tobacco products and any item in excess of $2,500 remains taxable.
  
  
• All services are excluded. Only tangible purchases are eligible. Airline tickets and sporting events are considered services."

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