Business Credit Cards

All Chase Ink Business Credit Cards Now Offering Very Easy $100 Cash Back

noreply@blogger.com (Steve Brown) — Sun, 10 Oct 2010 19:55:00 +0000

I don't know anyone who doesn't love a cash back credit cards. So today's news is pretty exciting: All the Chase Ink business credit cards now feature a $100 cash back bonus. It's a very sweet benefit, as cardholders qualify for the $100 bonus simply by making just one purchase with a new Chase Ink business card. Sweet.

We've updated all the Chase business credit card application links on the Prime Rate website to ensure that applicants have access to the $100 bonus offer. Click here to select your preferred Ink card and apply.

Half Glass Full: Business Credit Cards Better Than Ever for Responsible Borrowers

noreply@blogger.com (I.C. Jackson) — Fri, 24 Sep 2010 22:00:00 +0000

If you perform an internet search on “business credit cards”, you will more than likely return a myriad of results that paint them in a bad light simply because there are no added protections for card holders under the Credit Card Accountability and Responsibility and Disclosure Act of 2009 (CARD). The legislation was designed to protect not-so-savvy consumers who may experience drastic, unexpected interest rate hikes by not-so-honest card issuers willing to take advantage of them. Many business credit card holders were surprised to learn that CARD does not protect them, and so journalists far and wide are shaking their fingers at business credit cards, warning possible applicants against the ‘pitfalls’ of applying for business or “professional” credit cards.

These naysayers are not telling you the whole story.

For responsible credit card users, now is a great time to apply for a business credit card and use the current economic slump to your advantage. The Wall Street Journal reports that after CARD was enacted, credit card issuers mailed out 47 million professional offers in Q1 of 2010, a 256% increase from the same period last year. Why the huge jump? Because business owners are tightening their belts and postponing expansions, causing credit card issuers to lose profits. In a scramble to increase their own bottom lines, card issuers are relaxing certain application criteria for business (or “professional”) credit card applicants and beefing up the card reward programs. For instance, the Ink From Chase business credit card application has been changed to help make approval easier. The same Wall Street Journal article reveals that January 2010 mailings for the Ink From Chase card required applicants to provide the name of their company, the nature of the business, its address and its federal employer identification number. Solicitations in July, on the other hand, only required applicants to check a box that said ‘Yes, I am a business owner’ or ‘Yes, I am a business professional with business expenses.’ A Forbes blog also reports that the Ink From Chase card pays 3% back on fuel, home improvement, dining, and office supplies, as well as 1% on everything else. Small and home business owners are well able to combine personal and business expenses, making this and other similar business credit cards a very attractive option for business and even personal finance.

So, despite the lack of added protection by the Credit Card Accountability and Responsibility and Disclosure Act (CARD), these new and improved professional and business credit cards with expanded rewards programs can actually prove to be advantageous for the right kind of card user.

But who is that, exactly?

If you have a good credit score, pay your balance off every month, and do not usually incur late payment fees, the current economic climate has blown the winds of opportunity in your direction. Since the lack of added consumer protection in CARD only affects credit card users who tend to carry balances and are at times delinquent in their payments, these penalties are not a major source of concern for business owners who are conservative in their spending, keep good records, and pay off their credit card bills by the end of each month (at least most months). Getting a new business credit card now, while issuers are still looking to woo new applicants, can help build your business credit score and set you up nicely for the time when banks begin offering better business loans and you are ready to expand.

Don’t let the mainstream media tell you that this glass is half empty - it’s really half full.

Senator Chuck Schumer Is Mad at Credit Card Banks

noreply@blogger.com (Steve Brown) — Thu, 02 Sep 2010 22:19:00 +0000

I love my business credit cards. I've got 3, including a new one from Chase. Building my business's credit history is very important, but I also find the purchase protection very useful, as well as the way business cards make it easy for me to keep my personal and business spending completely separate.

It's so easy to vilify credit card banks for some of the sneaky tactics they sometimes employ to generate revenue via fees and interest. However, I know from extensive experience that if you use credit wisely, avoid carrying a high balance, and pay your bills on time, every time, chances are you will have few if any complaints about your credit card bank.

Moreover, I've been to many different parts of the world, and I've seen how difficult or expensive it is to get credit. I'm quite thankful for the easy credit that I enjoy as an American. For proof, all one has to do is step over our southern border and try to get a loan or credit card with a decent interest rate and fair terms. Good luck!

Credit card banks send out lots of mailings; lots of offers for both consumer and business credit cards. Many recipients of these mailings don't do what they know they're supposed to do, i.e. reads the terms and conditions associated with these offers. Sometimes a credit card offer looks like an offer for a consumer card, but is in fact an offer for a "professional" card. The difference is important, because a professional card is actually a business card, which means it's not covered under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (a.k.a the Credit CARD Act of 2009.)

Senator Chuck Schumer is mad at the credit card banks because they've allegedly started pushing professional cards, a lot. Here's a clip from the Senator's website:

"...U.S. Senator Charles E. Schumer (D-NY) today expressed alarm about a new tactic credit card issuers may be using to evade last year’s milestone credit card law, warning that card issuers are increasingly pushing consumers into signing up for corporate cards that are not subject to the law’s protections. In a letter to the Federal Reserve, Schumer pressed for a crackdown on this potentially abusive practice so that unsuspecting consumers are not lured by card offers intended to circumvent the law passed by Congress.

'Credit card companies seem to be purposely hawking corporate cards to consumers who don’t own a business and may even be retired. This is more than deceptive marketing; it is a dirty trick meant to get around the new credit card law. We need to put an immediate stop to this scheme, but in the meantime, consumers should be sure to read the fine print of the offers they are getting in the mail. This is the latest, most brazen attempt yet by the credit card industry to get around the law,' Schumer said.

Last year’s credit card law, signed by President Obama, imposed a host of reforms on consumer credit cards, such as a ban on rate increases in the first year of a cardholder’s agreement and a requirement that the card issuer provide 45 days notice before a rate increase can be assessed in later years. But these reforms are not applicable to corporate, or professional, cards – which are intended for use by small business owners.

Not coincidentally, credit card companies appear to now be marketing these corporate cards more widely, to ordinary consumers who don’t own a business and may even be retired. According to a market research group Synovate, mailings for corporate cards increased a whopping 256 percent in the first quarter of 2010. Average consumers are unwittingly signing up for the cards without realizing they are not covered by the stronger rules governing personal credit cards. In fact, the card companies appear to be playing to that confusion in the application materials for these corporate cards. A published report last week noted that an application form recently issued by one major card company no longer includes a section seeking detailed information about the potential cardholder’s business. Instead, the application merely requires a box to be checked indicating 'Yes, I am a business owner' or 'Yes, I am a business professional with business expenses.' This simplified application could easily prevent a card applicant from realizing the nature of the card they are signing up for..."

Ok, and here's Senator Schumer's proposed remedy:

"...In response, Schumer proposed today in a letter to Federal Reserve Chairman Ben Bernanke that card companies be required to solicit and verify an applicant’s federal tax identification number before approving a corporate card application. This way, Schumer said, the card companies would no longer be able to trick an ordinary consumer into signing up for a card that is not covered by the new credit card law..."

Here's what I propose: The Business Credit Card Accountability Responsibility and Disclosure Act of 2011. Why 2011? Because you know how long it takes for Congress to work things out.

Here's another idea: have the Federal Reserve put new rules in place that restrict credit card banks from engaging in anything that is obviously unfair with regard to business credit cards. They have the power to do it. They did it with consumer credit cards earlier this year.

Remember to read those terms and conditions carefully. If you signed up for a professional card thinking that you were signing up for a consumer card, just cancel the account. Lots of of credit card banks are very eager to get your business, so it's really no big deal, in my opinion. I wasn't born rich, and I need access to credit to run my business. I'm very happy to see plenty of competitive offers continue to stream into my snail-mail box. Credit is good. Competition is good. It's a great country.

Bank of America Clarity Commitment Summary.

noreply@blogger.com (Steve Brown) — Sun, 02 May 2010 16:24:00 +0000

Yesterday, I got a letter from Bank of America (BofA). I have two business credit cards issued by BofA. The letter is a Clarity Commitment Summary, and it begins, "Bank of America values its Small Business customers..." To be perfectly honest, when I read something like that in a letter from a credit card bank, I readily dismiss it. But, based on my experience with BofA, I actually said to myself, "yes, I believe you" when I read this. Here's why:

During the worst of the banking crisis and subsequent Great Depression, American banks cut back on all types of financial products, including credit cards. Accounts were closed, credit limits were slashed and interest rates were hiked. Citibank closed an inactive business card I had with them, then Chase forced me to close my Chase business card as I would not agree to a change in terms: a rate hike from 9.9% fixed to a variable rate of Prime + 11.99%. As for my Advanta card: that credit card bank closed all their small business credit card accounts about a year ago.

Bank of America didn't cut the credit limit on either card I have from them. They didn't raise my APR or close either account, even though one account has been inactive since I got it back in 2007.
A few months ago, I messed up. I missed a payment on my active BofA business card. I was hit with a $45 late payment fee, and my account was suspended (account was still open, I just couldn't make any new charges until I made a payment to cover 2 billing cycles.) I called the bank and explained that I had setup "scheduled payments" in advance, but one can only do this for up to a year into the future. I didn't realize that a year had passed since I setup the scheduled payments, and I needed to setup a whole new set. My mistake could have cost me dearly, but it didn't. After waiting on hold for 12 minutes, the BofA customer service rep' (CSR) removed the late fee and lifted the suspension. He thanked me for being a valuable Bank of America customer (my payment record was spotless up until my scheduling blunder) then told me that I should try setting up automatic payments instead of scheduling. With automatic payments, one can setup a certain amount to be paid each month on an account's due date, and not have to worry about scheduling anything else.

I explained that had tried setting up automatic payments a long time ago, but was only able to do so with my personal Bank of America credit card. When I called for help back then, I was told that there was a glitch and that I should be able to setup automatic payment with my business cards within a few days. I should have stayed on top of BofA's progress with fixing the glitch, but I instead opted to use scheduled payments. Do I have automatic payments setup for my business credit cards now? Of course!

How often do you read about a bank being so cool about a missed payment? No interest rate hike, no reporting to the credit bureaus. Absolutely no adverse action taken on the part of BofA. Kudos.

The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 does not include any new protections for business credit cards. However, Bank of America has decided to apply some of the most significant protections from the CARD act to the business cards I have with them. Here's a list from my Clarity Commitment Summary letter:

We will no longer increase your rate on existing balances for late payments or other risk reasons.
We will always provide 45 days notice before we increase your rate for future balances.
Any amount you pay over the minimum payment will now be used to pay down your balances with highest APR's first.
We will no longer charge a fee for going over your credit limit.
Your payment due date will now be at least 25 days from the statement closing date printed on your statement.

Again, Bank of America deserve a hearty pat on the back for adding a lot more value to their business cards. I'm sure that other credit-card banks will eventually follow suit, which is great. But BofA should be commended for taking the lead.

No Rate Hikes On Existing Balances for Bank of America Business Cards

noreply@blogger.com (Steve Brown) — Mon, 05 Apr 2010 02:04:00 +0000

As a Bank of America business credit-card account holder (I actually have 2 business cards from BofA) I was very happy to read today's news: No rate hikes on existing credit-card balances. Here's a clip from a recent Charlotte Observer article:

"...Bank of America Corp. won't raise interest rates on existing balances held by its 2 million small-business credit-card accounts, the bank said Thursday.

The bank also said that those customers will get 45 days' notice before rates change on future balances. It won't charge fees when customers go over their credit limit.

Small-business credit-card customers will also receive a one-page "Clarity Commitment," which is a summary of their rates, fees and payment information. The bank has already sent such statements to customers with mortgages, home equity loans and consumer credit cards..."

What’s Next For Small Business Credit Cards?

noreply@blogger.com (CCF) — Sun, 01 Nov 2009 20:05:00 +0000

During the past twelve months we have seen a paradigm shift in small business lending to say the least. Once a staple of the industry, small business credit cards are now a rare find. As previously reported on this blog, banks left and right have been terminating business cards; including Advanta, Chase, and Citi. Many cardholders have also complained about higher interest rates and lower credit limits.

What’s Next?
Although there is some dispute as to whether or not the recession is over, there’s no denying that economic conditions have significantly improved since last winter. According to the United States Commerce Department, the U.S. economy grew 3.5% during the third quarter. Positive GDP growth has also been reported by some other countries, with China leading the way so far at 8.9%. If economic conditions continue to improve, we most likely will see business credit cards trickle back onto the market.

What Will Be Different?
It’s important to note that business cards are currently excluded from the Credit Card Reform Act of 2009. Therefore, it's possible we may experience the same "bait-n-switch" complaints on credit card deals in the future. That being said, due to increased scrutiny and regulation of the industry, these questionable practices will likely become far less common.

It is also likely that new cardholders won’t be granted high credit limits, at least initially. Before the economic turmoil erupted, many new customers were given extremely high limits; often in the tens of thousands of dollars. For now, it is unlikely we will see these same spending limits awarded to new accounts.

Furthermore, applicants with lower credit scores will probably not be approved. We may even see business credit card deals explicitly mention they are only seeking those with excellent credit profiles.

Advanta Settles with The FDIC Over Fair Trade Violations

noreply@blogger.com (Steve Brown) — Fri, 03 Jul 2009 15:50:00 +0000

Here's some good news for all those who used to have an Advanta business credit card account. As you may already know, Advanta shut down all business credit cards accounts on May 30, 2009. No account was spared. Small business owners who relied on their Advanta credit cards to buy equipment, inventory, etc. were forced to find new sources of temporary financing in a hurry. This, of course, made lots of cardholders very angry, since business credit cards and lines of credit are not easy to find in the current credit crunch and recessionary economic environment.

To add insult to injury, Advanta also raised the interest rate on many accounts without providing fair warning. This happened with my own Advanta Platinum Businesscard account. Advanta ended my 0% intro APR period early, and without warning. Moreover, I'm still calling Advanta every week, as I'm trying to resolve a problem with an opt-out correspondence. All very vexing stuff.

So here's the good news: Advanta has settled with the Federal Deposit Insurance Corporation (FDIC) over fair trade violations related to business credit card accounts. Bottom line: if Advanta modified your interest rate without fair warning, you may eventually receive a restitution payment.

Here's a clip from Wednesday's press release:

"...Under the settlement, Advanta has agreed to an order to cease and desist, to pay restitution, and to pay a civil money penalty in the amount of $150,000. In addition, restitution of approximately $14 million will be paid to businesses that used Advanta's Cash Back Reward program and $21 million to accountholders whose accounts were repriced. In agreeing to the issuance of the order, Advanta did not admit or deny any liability.

Advanta's 'Cash Back Reward' program advertised a percentage of cash back on certain purchases by business credit card accountholders. Due to the tiered structure of the cash back payments, however, the advertised percentage was not available for all purchases. As a result, it was effectively impossible to earn the stated percentage of cash back reward payments. The FDIC concluded that the Bank's solicitations were likely to mislead a reasonable customer and that the representations were material and that therefore, the Bank engaged in a pattern of deceptive acts or practices in violation of Section 5.

In addition, numerous complaints were filed regarding Advanta's substantial annual percentage rate (APR) increases on the accounts of small business owners and professionals, who had neither exceeded their credit limits nor were delinquent in making payments on their accounts. The FDIC determined that Advanta's rate increases had been implemented in an unfair manner, that Advanta failed to adequately notify accountholders that their APR had increased, the amount of the increase, the reason for the increase, the procedures to opt-out and the consequences of an opt-out. The repricing caused substantial injury to customers, withheld and/or provided inadequate information that could have enabled the customer to reasonably avoid the injury, and provided no benefit to the customer or competition.

'The Advanta settlement demonstrates the FDIC's commitment to having banks take responsibility for ensuring that they do not engage in unfair or deceptive acts or practices in connection with the banking products and services they offer,' said FDIC Board member Thomas J. Curry. 'Any person doing business with an insured depository institution can expect to be treated fairly, and any such entity that engages in unfair or deceptive acts or practices should be aware that the FDIC will pursue such practices with all of the legal authority at our disposal.'..."

OK, so here's an example of one of the worst credit cards ever:

Yup.

I now pose this question to readers: is Advanta the worst business credit card bank ever? As always, your comments are very welcome, and appreciated.

Advanta Will Close All Business Credit Card Accounts on May 30

noreply@blogger.com (Steve Brown) — Tue, 26 May 2009 22:51:00 +0000

The outlook for domestic and international financial systems and institutions appears to be improving, as evidenced by new record lows for the 3-month London Interbank Offered Rate (LIBOR) and a narrowing TED spread (for more about the TED spread, click here.)

But one could argue that the improvement in interest rates is not a good indicator of the health of banks. Low, short-term interest rates, one could argue, are more a result of dramatic rates cuts and quantitative easing by the Fed and other key central banks across the industrialized world than they are the result of banks' improved condition. Yes, short-term rates are extremely low right now, but banks are still failing at an alarming rate. In fact, in the United States, there were 8 bank failures during April 2009, and 7 more have failed so far this month.

Advanta Will Close All Business Credit Card Accounts on May 30

Advanta, a bank that specializes in providing credit cards to small businesses, recently announced that the company will close all business credit card account on May 30, 2009. According to the Advanta's Account Closure FAQ page, May 29, 2009 will be the last day that Advanta business card holders can use their account to make purchases. Also from the FAQ:

If you plan on opening another business credit card account to help fund your operations, don't look to Advanta for a new account. The company is not accepting new credit applications. If you're worried that your credit score will be adversely affected by the reduction of available credit, or you simply need another card to use for temporary financing, other major banks like PNC, Citi®, Bank of America and Chase are still offering business credit cards. Also, look out for snail-mail business credit cards offers. These so-called "pre-approved" offers usually have slightly better terms, conditions and rewards than their online counterparts; if you are going to apply for a new business card, you might as well go for the best possible deal.

An excellent alternative to getting another business card is to get a small business loan via a peer-to-peer lending site like Prosper.com, VirginMoneyUS.com or the industry leader Lending Club.
Advanta's online account management system will continue to function after May 30. The company has no plans to remove or limit cardholder access to transaction data. Customer service will also be available after May 30.
Advanta accountholders will not be forced to pay their entire balance on, before or after May 30. Accountholders will still be able to pay down their account over time, according to the terms and conditions associated with each account.

Here a clip from the email Advanta sent out to business cardholders today:

"...Your Advanta Business Card account is funded by an independent trust which owns the balances you owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account. Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account, will be closed.

This means that you will not be able to use your card or account for new transactions, including purchases, checks and balance transfers beginning on May 30th. We understand that you may have written checks on your account before May 30th and we will make every effort to honor those checks that are presented to us for payment by June 3rd. If you use your Advanta card to make automatic recurring bill payments, you will need to make alternative arrangements for those payments promptly.

It is important to understand that you are not required to pay your entire balance at this time. You may continue to pay down your account balance over time, as allowed under your Advanta Business Card Agreement.

You will not lose the rewards that you have earned. If you participate in a Cash Back program, you will receive a check for the amount of any accrued rewards more than $1.00 as long as you make the required minimum payments and your account remains in good standing. If you participate in a Business Rewards program, you will have at least 60 days to redeem your points as long as you make the required minimum payments and your account remains in good standing.

We deeply regret the impact this action will have on your business and very much wish it was not necessary..."

Advanta did not apply for any TARP funds, but, maybe it should have. The lion's share of the company's revenue comes from it's credit card business, and the company recently reported that delinquencies have doubled year-over-year. Right now, you can buy shares of Advanta (trading on the NASDAQ exchange with symbol ADVNB) at $0.79 a piece. A year ago, the stock was trading at $7.60 per share. Two years ago it was trading at $25.68 per share.

How This Advanta News Has Affected Me

I liked my Advanta Platinum BusinessCard a lot when I was enjoying a 0% introductory APR, and continued using it sporadically when the intro period ended and my purchase rate jumped to 7.99%. I was using this card to fund a new business venture.

Last month, Advanta gave me an ultimatum: you can either continue to use your card and accept a 17.15% interest rate, or we will close your account and let you pay down your balance over time at 7.99%. I was given a month to make up my mind. 17.15% is a subprime rate, and I'm not a subprime borrower, so I chose to opt out of the new terms. I did not want to disrupt my cash position by paying the balance down to zero right away, so I chose instead to transfer the balance to a feeless balance transfer American Express consumer card.

Some months ago, both my CitiBusiness and Chase business credit cards were closed (you can read about it here), and now my Advanta card is gone. I'm now left with two business credit cards, and both are from Bank of America. I received a snail-mail offer for a Bank of America Business MasterCard® last week, and since the terms appear reasonable, I've decided to apply for this card.

I am hoping banks stop closing accounts and cutting credit lines soon, because, to be perfectly honest, I am really getting tired of this game.

For more on this Advanta news, check out this Consumerist.com article. You should also check out the content and comments at this article.

Chase "Forces" Me to Close My Favorite Business Credit Card

noreply@blogger.com (Steve Brown) — Wed, 25 Feb 2009 04:44:00 +0000

It's the old credit card bait 'n switch. The credit card banks bait you with attractive terms and generous rewards programs to get you to signup. Then, they wait. They wait for you to accumulate a large enough balance, then jack up your interest rate. I've been reading about this a lot on other websites recently; now it's happened to me, with my Chase business credit card.

Just got a snail mail notice from Chase informing me that the company is going to raise the interest rate on my favorite business credit card, from a fixed rate of 9.9% to a variable rate of (Prime + 11.99%) = 15.24%. 15.24% is now the interest rate floor for this card, since Prime is not likely to go any lower. Of course, I have the option to opt out of the change. This would cause my account to be closed, and I would then continue to pay the balance down to zero at the original 9.9% APR.

Thankfully, I'm prepared for this contingency. I plan on paying the balance off with some cash from savings and a small loan via Lending Club

I don't have to borrow any money via Lending Club to payoff my Chase business card, but I really like the idea of Lending Club -- bypassing the banks and borrowing from regular folks across the country -- and I want to go through the process of borrowing through Lending Club myself so that I can report on my experience here in this blog.

To be perfectly honest, I really like my Chase business card, but, clearly, it's time for us to part ways. With the U.S. Prime Rate at 3.25%, any rate above 10% is a subprime rate, in my opinion, and I'm not a subprime borrower. I took advantage of an excellent 0% intro APR offer with this card, and, when the 12-month, interest-free period ended, I used the cash back rewards program to lower my cost of borrowing to a nominal level.

I really like the cash back rewards program with this card. I spend money on it and reward points accumulate. Then, when points reach a certain threshold, I simply login to my account and request a statement credit. With a few business days, the statement credit is posted to my account. Easy. No forms to fill out, No waiting until the end of the year to get my cash back reward and no waiting for a snail mail check. I will miss this rewards program.

I have to hand it to Chase for being honest. In the change of terms notice they sent, they explained the change as a, "response to market conditions," and they also added that the company wants to "maintain profitability." I'm hating the change but I respect the honesty. Contrast this with the Barclay's notice I received when that credit card bank closed my BJ's Visa Card. The company wrote that it was to, "...help [me] better manage [my] credit accounts..." In other words, not only did they close my account without consulting me first, they also felt it necessary to insult my intelligence.

In other business credit card news: Citi® closed my inactive CitiBusiness® card recently. I will miss this card because:

it had a decent credit line (~$10,000) which enhanced my business's credit profile, and
the account was aged which, again, contributes to my business's credit rating. It was my first business credit card.

So now I'm left with 3 business credit cards: two from Bank of America and one from Advanta. The Advanta card is about to be anointed as my "goto" card, because I'm still enjoying 0% intro APR on purchases, and the purchase APR will jump to a somewhat reasonable 7.99% when the interest-free period ends . I have been reading some horror stories about this particular Advanta business card (unwarranted rate hikes), but so far I've all is well. If Advanta tries to pull some funny business by raising my rate, I'll just pay the card off (my credit limit is under $3,000, and my balance isn't anywhere near that.)

As a final note: it's really no wonder that American Express is consistently rated as the best credit card bank. Right now the company is offering some high-risk cardholders a $300 payment (in the form of a prepaid gift card) in exchange for these accountholders paying their balance down to zero within a certain timeframe, and closing their account. Now that's my kinda' credit card bank!

NB: In that same JD Power & Associates Credit Card Satisfaction Study(1), Discover Card placed second.

Chase, on the other hand, has identified certain credit card accounts that may be at risk for default, and has responded by imposing a $10 per month fee. Yikes! I'm not a public relations professional, but I do have some sage advice for JP Morgan Chase CEO Jamie Dimon: stop doing that!

Using Business Credit Cards To Make Ends Meet - A Growing Reality

noreply@blogger.com (I.C. Jackson) — Wed, 29 Oct 2008 14:59:00 +0000

It’s reasonable to argue that small business owners are feeling the effects of the global credit crunch most of all. Small businesses use credit for capital purchases, operations, and payroll, so when banks stop lending, small business owners find themselves in hot water. This year’s stock market crash has sent the global economy into a tailspin, and the Congressional bailout plan hasn’t stabilized financial markets the way the Fed and the Bush administration hoped it would. Instead of using the money to sustain or increase lending, banks are using the bailout funds mostly as a cushion for their own operations, which is killing many small businesses. Big businesses and big banks made poor choices; now small businesses are left holding the bag.

That’s why business credit card usage is steadily increasing.

Many business owners are now using business credit cards to make equipment and inventory purchases to make up for their dwindling credit lines. Banks are not loaning as much as they used to and not nearly as often, so many small business owners have had to use credit cards to make up the difference.

The problem with using business credit cards like traditional lines of credit is that they are not designed to for that kind of usage. Business credit cards are supposed to be used for expenses in daily operations and minor purchases. However, these tough economic times are forcing business owners to make major purchases on credit cards, putting both their personal and business finances at greater risk. Most business cards require the cardholder to provide a personal guarantee, and all charge interest when balances are not paid off every month. It’s most likely that daily expenses will be covered monthly; however, running a business on credit cards costs the business more because of the interest and fees associated with credit cards.

So, what is a struggling business owner to do?

If you absolutely have to use business credit cards in non-traditional ways, you should get the best cards available. There are small business credit card resources that provide access to deals that allow business users to transfer balances with no fees and make new purchases with an introductory 0% APR. The rewards packages on many of these cards may also help you cut costs by making certain services and modes of transportation cheaper or even free. Performing a balance transfer to a new business card once or twice a year is an easy way to avoid paying interest on an outstanding balance, so it's a good idea to pay attention to all those snail mail business credit card offers you likely receive on a regular basis. Bottom line: if you can take advantage of favorable credit card offers when they are available, then you should.

Sooner or later the economy will recover, but until it does, small business credit cards may be the best financial tools available that can keep small business owners afloat.

No Preset Spending Limit with the Advanta Business World MasterCard®

noreply@blogger.com (Steve Brown) — Thu, 25 Sep 2008 23:26:00 +0000

We've added the Advanta Business World MasterCard® to our lineup of recommended business credit cards. This card does not come with an attractive 0% balance transfer offer, and it the purchase APR is currently 16.99% (indexed to Prime.) So why do we like this card?

Because for certain individuals this card could be a very nice fit. Those small business owners who pay their credit card bills in full each and every month -- thus avoiding any finance charges -- will almost certainly find the "no preset spending limit" aspect of this card attractive. This card is very unique: it's a credit card with no preset spending cap. Usually, only charge cards like the Gold Card from American Express card have no preset limit.

Here's a clip from the Advanta Business World MasterCard terms and conditions:

"....Because your account has no pre-set spending limit, we may permit you to incur charges that cause your balance to exceed your revolving credit limit. We may evaluate each such charge based on your account performance with us and your experience with other creditors. Any amount that we allow you to spend above your revolving credit limit will be due in your next statement, but we will not charge you an overlimit fee. All rates, fees and comparisons are valid as of April 1, 2008 but not necessarily thereafter. You should consult your tax advisor as to the proper tax treatment and deductibility of any business expenses, including the cost of credit..."

No need to worry about being charged an over-your-credit-limit fee, ever. But, if you do go over your credit limit, be prepared to pay whatever amount you go over when your next statement arrives. If you want to spend above your limit but Advanta decides not to permit the overage, the charge will be declined.

Interested? Click here to apply.

Help Entrepreneurs In Developing Nations Thrive with The New Advanta Kiva Business Credit Card

noreply@blogger.com (Steve Brown) — Wed, 23 Jul 2008 23:30:00 +0000

Advanta has just introduced the new Kiva business credit card. What's so special about this new Kiva card? Well, if philanthropy is your thing, this card might be just the right fit for you. That's because, as a Kiva BusinessCard accountholder, anytime you make a grant to Kiva.org using the Kiva card, Advanta will match the grant -- dollar for dollar -- up to $200 per month. Your grant will help entrepreneurs in developing nations.

Microfinance is a beautiful thing. A small donation can make a huge difference to a struggling entrepreneur in a relatively poor country. The future of philanthropy is in microfinance, in my humble opinion. Handouts can help deserving recipients temporarily. A grant to an entrepreneur, on the other hand, will not only improve that business owner's life, but also his family and his community.

The annual percentage rate (APR) for purchases with the new Kiva card is a very competitive Prime + 2.74%, which adds up to 7.99% at the time of this posting (NB: the index never drops below 5.25% for this card, no matter where the Prime Rate is.)

You can transfer a credit card balance at 0% Intro APR and the interest-free period will last 15 months! That's pretty darn strong. If you don't payoff your transferred balance by the time 15 billing cycles are up, the "goto" APR will be 7.99%, which is also very competitive.

A couple things I should point out before you decide to take the plunge:

From the terms and conditions:

"...Balance transfers must be from another business credit account..."
Again, from the terms and conditions:

"...Finance charges on balance transfers and cash advances begin to accrue on the date we process the transaction..."

Visit www.kivab4b.org for more info about how the Kiva program works. You can also visit the blog at www.b4bcommunity.org for the latest Kiva-related news.

New Business Credit Card from American Express

noreply@blogger.com (Steve Brown) — Wed, 02 Jul 2008 23:31:00 +0000

If you fly with Delta Airlines a lot, then today's news may interest you. American Express recently announced the launch of a new line of business credit cards aimed at consumers and small business owners who fly with Delta Airlines often. The cards are the Delta Reserve Credit Card and the Delta Reserve for Business Credit Card. Here's a notable quote from the April press release:

"...The Delta Reserve Credit Cards are now the most elite Cards offered in the line of American Express and Delta co-branded cards..."

If the above quote has piqued your interest, here's a much bigger clip from the release:

"...American Express and Delta Air Lines (NYSE: DAL) are launching new premium co-branded credit cards for U.S.-based consumers and small businesses called the Delta Reserve Credit Card and the Delta Reserve for Business Credit Card. These new products will offer added value, flexibility and new benefits for Cardmembers who are most loyal to Delta.

The Delta Reserve Credit Cards are designed to cater to the needs of Delta's on-the-go customers and provides Cardmembers with a greatly enhanced travel experience through benefits such as the ability to earn Medallion® Qualification Miles (MQMs) faster, share MQMs with family and friends for the first time ever, access to the dedicated Breezeway priority boarding lane and frequent traveler security line, Delta Crown Room Clubs® access, and 24-7 concierge services. The Delta Reserve Credit Cards are now the most elite Cards offered in the line of American Express and Delta co-branded cards.

'We are delighted to expand our partnership with Delta and to offer these premium co-branded cards that reward our most loyal customers in new and unique ways,' said David Rabkin, vice president, Delta Cobrands, American Express. 'We know that affluent customers want access to distinctive services and experiences, so we continually look for ways to meet these needs. With the launch of the new Delta Reserve Credit Cards, we can deliver on that commitment.'

'The Delta Reserve Credit Card was created to offer premium customers a best-in-class co-brand card that provides them preferential treatment when flying Delta,' said Jeff Robertson, Delta's managing director of SkyMiles. 'Not only does this unique Card offer generous rewards, it will also provide loyal Delta customers an experience that is designed to exceed their expectations.'

The Delta Reserve Credit Cards offer distinct benefits and options that allow Cardmembers to:

Achieve higher Delta SkyMiles Medallion status faster:
Earn MQMs as a first purchase bonus;
Earn 15,000 MQMs and 15,000 bonus miles when eligible spending reaches $30,000 in a calendar year;
Earn an additional 15,000 MQMs and 15,000 bonus miles when eligible spending reaches $60,000 in the same year.
Give the MQMs earned from Card spending to colleagues, friends or family – for the first time ever.

Enjoy complimentary access to Delta's Crown Room Clubs with two guests when flying on Delta.

Access to the dedicated Breezeway priority boarding lane and frequent traveler security line.

Utilize American Express' Personal Concierge Service with features such as gift buying and restaurant reservations – 24 hours a day/seven days a week.

Receive one complimentary companion certificate each year on the Cardmember's anniversary, good for either First or Coach Class travel.

Access to Pay with Miles, a new exclusive benefit for Gold and Platinum Delta SkyMiles Credit Cardmembers -- and now Delta Reserve Credit Cardmembers. Pay with Miles offers added flexibility, allowing Cardmembers to redeem miles for any available Delta seat, any time. Cardmembers can book flights on delta.com and use Delta SkyMiles to pay for all or part of a Delta ticket, with no blackout dates or inventory restrictions.
Terms, conditions, and restrictions apply to these benefits. See www.americanexpress.com/deltareserve for details.

The Cards are available for an annual fee of $450. If a Cardmember is the Basic Cardmember of a domestic American Express consumer Charge Card account or of a domestic American Express small business charge card account that has an annual fee greater than or equal to $55, the annual fee is $395.

Consumers will continue to earn Always Double Miles® (i) on every eligible dollar they spend on Delta purchases, as well as at gas stations, supermarkets, drugstores, home improvement stores, and more.

The new Delta Reserve for Business Credit Card incorporates all the above benefits of the Delta Reserve Credit Card. However, the ability to earn Always Double Miles® (ii) on every eligible dollar spent includes the following business relevant categories: Delta purchases, gas stations, home improvement stores, wireless phone bill payments, and office supplies. In addition, the Business Card offers programs and services tailored specifically to the needs of small business owners. In addition, the Business Card provides expense management reporting, an online spend tracking system and spending limits on additional cards that aid in better managing employee spending..."

Enjoy!

More Important News About Citi® Business Credit Cards and Balance Transfers

noreply@blogger.com (Steve Brown) — Sun, 13 Apr 2008 18:25:00 +0000

CitiBusiness® credit cards have been the most popular business credit cards at this website for some time. The fact that with most CitiBusiness credit cards, approved applicants could transfer credit card balances at 0% intro APR, and pay no transaction fee on introductory transfers, was certainly a contributing factor to their popularity.

Now, all the CitiBusiness credit cards we recommend at this site include a fee on both introductory and non-introductory credit card balance transfers. Here's a list, with corresponding intro APR details:

-- The Citi® Professional^SM Cash Card

0% intro APR on purchases for 12 months.
balance transfer fee on any credit card balance transfer to this card.

-- The Citi® Professional^SM Card with Thank You® Network

0% intro APR on purchases for 12 months.
balance transfer fee on any credit card balance transfer to this card.

-- The CitiBusiness® Card

0% intro APR on purchases and balance transfers for 12 months.
balance transfer fee on any credit card balance transfer to this card.

-- CitiBusiness® Card with ThankYou® Network

0% intro APR on purchases for 12 months.
balance transfer fee on any credit card balance transfer to this card.

The balance transfer fee for all the above CitiBusiness cards is currently "3% of the amount of each balance transfer, $5 minimum." Click here for more details.

I still like CitiBusiness cards a lot. I have a Citi® Business card in my wallet right now, and I've been very happy with it over the years. Citi is a highly reputable, world-class bank, and their credit products are outstanding.

Important News Regarding The CitiBusiness® Card

noreply@blogger.com (Steve Brown) — Wed, 26 Mar 2008 00:43:00 +0000

Some good news and some bad news to report today.

The web surfers who visit this site like the business credit cards offered by Citi® a lot. Why? Because, heretofore, with all the Citi business credit card we've been recommending at this website, you could transfer non-Citi credit card balances at a zero percent introductory rate, and pay no transaction fee on the introductory balance transfers. The feeless, 0% balance transfer characteristic of these cards has helped to make them the most popular cards on this website.

OK, so first, the bad news. The CitiBusiness® credit card has recently been reconfigured by Citi, and now charges a fee on all balance transfers, including the introductory ones.

Actually, this news isn't so bad when weighed against the good news, which is that Citi still has 5 business credit cards to which you can transfer credit card balances at 0% intro APR, and pay no fee for the privilege. The cards are:

The Citi Professional^SM Cash Card
The Citi Professional Card
The Citi Professional Card with Thank You^SM Network
The CitiBusiness Card with Thank You Network
The CitiBusiness PremierPass^SM Card

Click here for details about the above-listed cards.

FYI: The CitiBusiness credit card is still available. You can apply for it right now if you want, by visiting this page.

New Card Added: The Advanta Platinum with Rewards Customized BusinessCard

noreply@blogger.com (Steve Brown) — Sat, 22 Mar 2008 18:48:00 +0000

We've just added the Advanta Platinum with Rewards Customized BusinessCard to the list of card we recommend at this website. We like this card a lot, not only because it's cool, but also because it comes with some very competitive terms and conditions.

Why is this card cool? Because, as far as we know, it's the only business credit card in the American market that you can customize with your own logo or a favorite image, and/or have your company name emblazoned with bold lettering at the top of the card, like this:

If you want to transfer a balance to this card, you'll have to pay a balance transfer fee, but this downside is very well balanced with the upside of a 0% introductory APR on balance transfers for 15 months. Very competitive indeed.

And that's not all. The APR on purchases is a very competitive Prime + 0.24%. Now, it should be noted that the purchase APR cannot go lower than 7.75%, no matter how low the Prime Rate falls (Prime is currently at 5.25%, and is likely to be cut again on April 30.) A Clip from the terms and conditions:

...Your account rate for Purchases will be Prime plus a Purchase Margin of 0.24%...Your Variable Rate Index for any billing cycle will be chosen by us from among the Prime Rates published in The Wall Street Journal's "Money Rates" section during the three (3) months prior to the month which contains that cycle's Billing Cycle Closing Date, but will not be less than 7.75%...

Bottom line: despite these somewhat convoluted APR terms for purchases, the introductory and purchase APR's associated with this card are still excellent.

Other powerful features of this card:

Choice of 5% Cash Back or Travel Rewards
No Annual Fee
No Limit on the Total Rewards you can earn
$0 Fraud Liability

If you end up with this card in your wallet, feel free to revisit this blog entry and post your comments here. Thanks!

Added New Business Credit Cards from Capital One

noreply@blogger.com (Steve Brown) — Tue, 04 Dec 2007 18:05:00 +0000

Two new, Capital One business credit cards have been added to this website. The cards are:

I like these two cards. They each have a strong rewards program, and with both you get 0% intro APR on new credit card purchases for 12 months (if you are looking for a business credit card with a great 0% intro APR balance transfer deal then click here.)

I also very much like the fact that Capital One doesn't play the universal default game. Considering how many banks play "follow the leader" with their terms and conditions, Capital One should be commended for not jumping on the universal default bandwagon.

Both Capital One cards listed above include the following in their terms:

"...We do not engage in a practice known as "universal default." Universal default permits a credit card company to increase your APR's solely because you fail to make a payment on a loan with another lender or your credit history contains other negative information. If we increase your APR's for any of the reasons disclosed above, we may review your credit history to determine (a) that we should not increase your APR, or (b) the level of the increase, if any..."

Other leading banks, including Citi, are moving away from universal default, so perhaps the practice will be eradicated from the credit card industry at some point in the near future.

If you find universal default particularly irksome, you can always contact your Representative in Congress and/or your state's Representative in the Senate and let them know how you feel about it.

A New Business Credit Card from Advanta: The Life-of-Balance Platinum Business Card

noreply@blogger.com (Steve Brown) — Sun, 18 Feb 2007 22:19:00 +0000

Most consumer and business credit cards are indexed to the U.S. Prime Rate, which means that the Prime Rate is used a base or foundation rate for determining a credit card's annual percentage rate (APR). Finding a credit card with an APR that's close to the Prime Rate is not easy; finding a credit card with an APR that's lower than the U.S. Prime Rate is very rare.

So it's no surprise that we've been recommending the Advanta Platinum Business Card with Rewards Options for many months now: the APR is Prime minus 0.26%, and you can transfer credit card balances and pay no interest on the transferred balance for 15 months. It's a hot offer, but make sure your credit rating is up to snuff before applying, because with an APR below Prime, you can be sure that the folks at Advanta will be selective.

Advanta's New "Life-of-Balance" Platinum Business Card

We've added a new Advanta business card to the site. We like Advanta's new "Life-of-Balance" Platinum Business Card because the APR is quite competitive at Prime + 1.74%. But we really like the fact that you can transfer other credit card balances to this card at 2.99%, and the APR associated with the transferred balance will stay at 2.99% until you pay the transferred balance down to zero (you have to initiate the balance transfer within 3 months of opening the account.) The card also features a generous 6% cash back rewards program, or, if cash back isn't for you, you can choose to take advantage of travel rewards.

Click here for the "Life-of-Balance" Platinum Business Card from Advanta

If You Hate Fees, Then You'll Like The New Commerce Bank Small Business Credit Card

noreply@blogger.com (Steve Brown) — Thu, 25 Jan 2007 17:41:00 +0000

Have you had enough with credit card fees? Have you ever wished for a credit card that doesn't charge any fees? What if I were to communicate to you that there's a new small business credit card on the market that doesn't assess any of the following fees:

Annual fee
Late payment fee
Over-the-limit fee
Cash advance fee
Balance transfer fee

Would you believe me?

Well, it's true. According to a recent press release, the folks at Commerce Bank are offering a new, small business Visa® credit card that is literally feeless. Believe it!

Now, I know what you are thinking: if a credit card doesn't have any fees, then the annual percentage rate (APR) -- the interest rate charged on outstanding credit card balances -- must be high. Well, here's another surprise for you: the APR associated with the new Commerce Bank Visa credit card is a reasonable Prime + 4.99%. So, if you were to signup for the new Commerce Bank business card today, the APR would be 8.25% + 4.99%, or 13.24%, which is quite competitive, considering the number of business and consumer credit cards out there which currently have APR's that are higher than 13.24% -- and some that are much higher!

If the absence of annoying credit card fees and a competitive APR aren't enough for you, here's another great feature associated with the new Commerce Bank business Visa card: it's a rewards card.

For more about the new Commerce Bank Visa credit card for small business, point your web browser to http://www.CommerceOnline.com. Here's a clip from a recent press release:

"Commerce Bank, 'America's Most Convenient Bank,' and one of the nation's top small business lenders, has launched a new Visa® Platinum credit card for small business customers that carries absolutely no fees and provides a significant rewards program.

The new, no-fee credit card is the only small business credit card available that has eliminated all the membership and penalty fees typically charged by banks and credit card companies. Commerce small business Visa cardholders will pay absolutely no fees for this platinum credit card account:

No annual fee
No late payment fee
No over-the-limit fee
No cash advance fee
No balance transfer fee
No default pricing

The new Commerce Bank Visa credit card will enable small business owners to avoid paying unnecessary fees and better manage their cash flow.

'By eliminating ridiculous bank fees and penalties charged by other financial institutions, the new Commerce Visa small business card doesn't penalize business owners for being busy running their businesses,' said Commerce Bank Founder and Chairman Vernon W. Hill. 'Commerce Bank is proud to support small business, the backbone of our nation's economy, by offering the best and most convenient free products and services for small business owners.'

Commerce introduces the new small business Visa credit card at a time when most credit card companies and banks are charging more and higher fees than ever. A report issued in October 2006 by the U.S. Government Accountability Office (GAO) indicates that the average penalty in 2005 for making a late payment was $34 - a 115 percent increase from the average late fee of $13 in 1995. Late fees will make up about 70 percent of the industry's $17.1 billion in penalty-fee income this year, estimates R.K. Hammer, a bank-advisory firm. Additionally, CardWeb.com says that in the past decade, fees assessed for exceeding a credit limit jumped 138 percent, to an average of $30.81 last year.

The new Commerce Bank Visa credit card also enables customers to earn quadruple Visa Extras Rewards Points for every purchase made -- four points for every dollar spent; most rewards programs typically award only one point for each dollar spent. Rewards points can be redeemed for a variety of business, travel, dining and entertainment products, services and gift certificates from popular retailers and service providers.

Commerce Bank's no-fee Visa small business credit card will carry a low annual percentage rate (APR) of Prime plus 4.99%. Last month, the Office of Advocacy of the U.S. Small Business Administration reported a recent increase in small business loans, which came mostly from credit card use by small business. 'Access to credit is vital for small business survival,' said Dr. Chad Moutray, Chief Economist for the Office of Advocacy, commenting on the report. Noting the increase of both the number of micro business loans and the increase in the dollar amount of outstanding loans, Moutray stated, 'The small business credit card market continues to be quite dynamic.'

Commerce is one of the leading small business lenders throughout its footprint and beyond. The bank has supported the growth and prosperity of the nation's small businesses by providing more than $1 billion in loans over the last five years. Commerce has consistently ranked high among regional lenders in the industry in both dollar volume and the number of Small Business Administration (SBA) loans made, and the bank regularly surpasses its regional competitors in dollar volume of loans made to minority-, women- and veteran- owned businesses.

Commerce business customers enjoy the same convenience, advanced technology and personalized service as retail customers. Business owners and their employees can bank at 400+ retail locations, seven days a week, during extended hours, or via the Internet or phone 24 hours a day, 365 days a year. Commerce combines its community bank roots with the financial strength of a major regional bank to meet the diverse needs of commercial customers. Commerce Bank's lending professionals are local bankers making local loans, and they establish customer relationships focusing on service and the delivery of individualized financing solutions.

About Commerce Bank

Commerce Bank, 'America's Most Convenient Bank,' is a leading retailer of financial services with 400+ convenient stores in New Jersey, New York, Connecticut, Pennsylvania, Delaware, Washington, D.C., Virginia, Maryland and Florida. Headquartered in Cherry Hill, N.J., Commerce Bancorp (NYSE: CBH - News) has $45.3 billion in assets and in fiscal year 2006 achieved an 18% increase in core deposits, a 23% increase in net loans and total asset growth of 18%. For more information about Commerce, please visit the company's interactive financial resource center at http://www.commerceonline.com, or call 888-751- 9000."

Citibank (Citi) Business Credit Cards Featuring No Fee Balance Transfers

noreply@blogger.com (Steve Brown) — Sat, 02 Dec 2006 02:16:00 +0000

Zero percent credit card balance transfer offers are very popular right now -- especially feeless balance transfer offers -- and it's easy to understand why. Why would anyone pass on a chance to save on interest charges for up to 12 months?

The good news for business owners is that many business credit cards have excellent zero percent introductory annual percentage rate (APR) balance transfer offers associated with them, and with some of them you won't have to pay a balance transfer fee.

Recently, the good folks at Citibank removed the balance transfer fee from the 0% balance transfer offers associated with some of their business credit cards. You can't do much better than a feeless balance transfer offer, and, right now, certain Citibank business cards feature a 12 month interest-free period on both transferred balances and new purchases -- like the CitiBusiness Card®. Bottom line: credit card deals don't get too much sweeter than that!

Other Citi® business cards which currently feature the option to transfer credit card balances at zero percent with no balance transfer fee are:

Of course, the terms and features associated with the above-listed offers can change at any time, so be sure to read any and all credit card terms and conditions carefully before applying for any card recommended here.

No Need To Work for Your Rewards with The SimplyCash Business Credit Card from American Express

noreply@blogger.com (Steve Brown) — Thu, 02 Nov 2006 21:23:00 +0000

Don't you just hate it when a bank or credit card company makes you work for your rewards? I know I do.

With one of the consumer credit cards I carry in my wallet, they won't send me a penny unless I login to my account, check how many rewards points I've accrued, then make a formal request for a check if I've accumulated enough points. Bah! Who has time for all that?

I like cash back rewards as much as the next guy, but no one should have to work in order to reap the benefits of any credit card rewards program. That's my opinion, and I'm very confident that I'm not the only one who feels this way.

American Express to The Rescue!

The latest business credit card from the good folks at American Express is the SimplyCash^SM card, which features cash back on just about anything you buy with the card, and the rewards program will automatically (no work!) credit your account each month with any rewards you've earned. Cardholders get 5 percent cash back on wireless charges, office supplies and gas, and 1 percent cash back on just about everything else that's charged to the card.

As an added bonus, the SimplyCash card comes with a 0% introductory annual percentage rate (APR) on new, card-in-hand purchases for the first 12 months, with a "go to" rate as low as the U.S. Prime Rate after that.

As usual, the folks at American Express get it.

Lots more details below in the following clip from a recent press release:

"American Express today announced the launch of the American Express SimplyCash^SM Business Card, which makes cash- back rewards simple for time-pressed small business owners through automatic monthly cash-back rebates(1). The new Business Card gives cash back on virtually all purchases and automatically delivers the rewards each month as a statement credit.

Cash rebates are among the most popular rewards, with 42% of small business owners saying they prefer cash back rewards, according to the OPEN from American Express Small Business Monitor, a semi-annual survey of small business owners.

With the SimplyCash Business Card, cash-back rewards are easy and automatic. All Business Cardmembers have to do is use their SimplyCash Business Card to automatically receive 5% cash back each month on gas, office supplies, and wireless charges, and 1% cash back on nearly all other purchases. There are no spending limits or caps on the cash-back rewards a Business Cardmember may receive, and the Business Card carries no annual fee.

Like all American Express Business Cards, the SimplyCash Business Card gives small business owners additional savings through the OPEN Savings® program. The OPEN Savings(2) program gives Business Cardmembers automatic savings at select travel and service providers, and business suppliers, such as Delta, JetBlue, Fedex Kinko's, and Hyatt. In just two years the OPEN Savings program has already saved small business owners more than $150 million.

'The American Express SimplyCash Business Card's automatic monthly rebates make cash-back rewards easy for small business owners who want to earn immediate cash-back savings on all their purchases, but don't have time for complicated cash-back redemption rules,' said Raymond Joabar, senior vice president and general manager, OPEN from American Express. 'In addition, this easy cash-back program has no cap on the savings that Business Cardmembers can earn, and cash-back savings are combinable with any merchant discount, as well as with the automatic discounts available through the OPEN Savings program.'

The American Express SimplyCash Business Card offers small business owners an introductory Annual Percentage Rate of 0% on purchases for the first 12 months.

American Express SimplyCash Business Card benefits include:

5% cash back on gas, office supplies, and wireless charges

1% cash back on virtually all purchases

Cash-back reward credited automatically on monthly statement

No caps on the amount of cash-back rewards Business Cardmembers can earn

0% Annual Percentage Rate (APR) for 12 months; after 12 months, as low as Prime + 0%(3).

No annual fee, and fee-free additional Cards

The OPEN Savings program, which offers automatic savings at select travel and service providers, and business suppliers like Delta, JetBlue, Fedex Kinko's, and Hyatt. For more information, visit OpenSavings.com

Retail and travel protections such as Global Assist, Car Rental Loss & Damage Insurance(4), Purchase Protection Insurance(5), Travel Accident Insurance(6), American Express Card Baggage Insurance(7), Buyers Assurance Plan(8), Automatic Bill Payment, Express Cash Emergency Card Replacement, Emergency Check Cashing, and 24-hour customer service.

About OPEN from American Express

OPEN is the American Express team dedicated exclusively to the success of small business owners and their companies. The OPEN Team supports business owners with exceptional service. With tailored products and services, the team delivers purchasing power, flexibility, control and rewards to help customers run their business. Specifically, business owner customers can leverage an enhanced set of products, tools, services and savings, including charge and credit cards, convenient access to working capital, robust online account management capabilities and savings on business services from an expanded lineup of partners. To obtain more information about OPEN, visit http://www.OPEN.com, or call 1-800-NOW-OPEN to apply for a Card or loan. Terms and conditions apply.

American Express Company (http://www.americanexpress.com) is a leading global payments, network and travel company founded in 1850.

1. Cash Rebate: Your Rebate is awarded monthly on the amount of your purchases (net of credits for purchases) made during the previous billing period, based on the following structure: You will receive a Rebate of 5% for purchases of wireless telephone services, automobile gasoline, and office supplies and equipment, in each case not purchased at warehouse clubs, superstores or supermarkets ("5% Purchase(s)"). You will receive a Rebate of 1% for all other purchases.

Important: You will receive a 5% Rebate only if the merchant submits the Charge for your 5% Purchase under the appropriate merchant code, industry code and required service or product identifier established by us with/for the merchant. For example, if a general merchandise retailer sells office supplies, and the retailer processes your Card transaction as a general merchandise charge instead of an office supply charge, you will receive a Rebate of 1%, not a Rebate of 5%.

You will not receive a Rebate for balances transferred from other accounts, purchases of American Express Travelers Cheques or American Express Gift Cheques, fees, Finance Charges, Cash Advances and similar means of accessing your Card Account. Additional terms and conditions apply.

2. OPEN Savings(R): Payment must be made with an American Express® Business Card at the time of purchase. Savings will be credited to your American Express Business Card billing statement. All savings referenced are in addition to any offers made by participating companies. Participation and offers are subject to change without notice. Terms and conditions apply. For more information, please visit opensavings.com.

3. Annual percentage rate for purchases: 0% introductory APR for 12 months on purchases made with plastic only. Then, 8.25%, 12.24%, 15.24%, or 18.24%, respectively, as determined by us based on our credit evaluation and a number of factors, including size of the credit line.

Other APRs: Balance Transfer APR: 7.99% fixed for the life of the transferred balance, but only if transfer is made during the first six months as a Cardmember. Then the Standard APR for Purchases will apply.

Cash Advance APR: 23.24% Default APR: 24.24% (30.24% for Cash Advances) for defaulted accounts; 30.24% on all balances for seriously defaulted accounts.

4. Car Rental Loss and Damage Insurance: Underwritten by AMEX Assurance
Company, Administrative Office, Green Bay, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0925 and is subject to change with notice. This document does not supplement or replace the Policy.

5. Purchase Protection Plan: Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0951 and is subject to change with notice. This document does not supplement or replace the Policy.

6. Travel Accident Insurance Plan: Underwritten by AMEX Assurance Company, Administrative Office, De Pere, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0948 and is subject to change with notice. This document does not supplement or replace the Policy.

7. American Express Card Baggage Insurance Plan: Underwritten by AMEX Assurance Company, Administrative Office, De Pere, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0400 and is subject to change with notice. This document does not supplement or replace the Policy.

8. Buyer's Assurance Plan: Underwritten by AMEX Assurance Company, Administrative Office, Green Bay, WI. Coverage is determined by the terms, conditions, and exclusions of Policy AX0953 and is subject to change with notice. This document does not supplement or replace the Policy."

A New Business Credit Card from American Express: The Starwood Preferred Guest Business Credit Card

noreply@blogger.com (Steve Brown) — Wed, 11 Oct 2006 04:37:00 +0000

You probably know Starwood by the brands they own:

Sheraton
Westin
Four Points by Sheraton
W Hotels
St. Regis
The Luxury Collection
Le Méridien
Aloft

Yup: some of the finest, world-class luxury hotels and resorts are owned by Starwood.

And now for today's news: Starwood and American Express are introducing a new business rewards credit card: The Starwood Preferred Guest® Business Credit Card.

You'll be impressed with the rewards and bonuses offered by the Starwood Preferred Guest Business Card. You can earn complimentary nights at over 800 Starwood resorts and hotels around the world. And earning reward flights is a snap, because there are over 30 airline brands that have partnered with the Starwood Preferred Guest Business Card rewards program.

And how's this for a great signup bonus: you get 10,000 Starpoints® just for making one purchase with the Starwood Preferred Guest Business Card; 10,000 Starpoints can be traded-in for up to three free nights at a Starwood resort or hotel. Good stuff!

More details from a recent press release below:

"American Express Company and Starwood Hotels & Resorts Worldwide, Inc. today announced the launch of the Starwood Preferred Guest® Business Credit Card for small business owners and the enhanced Starwood Preferred Guest® Credit Card for consumers. Cardmembers can take advantage of greater benefits and richer rewards, making it easier than ever for consumers, and now small business owners, to earn free nights at more than 825 Starwood hotels and resorts around the world and award flights with more than 30 airline partners.

New offerings on the Cards, include:
10,000 Starpoints® bonus with first purchase – that's enough for up to three free nights(1)

Double Starpoints on stays at participating Starwood Hotels & Resorts and purchases at select Starwood retail outlets, such as Bliss Spa and more(2)

Automatic upgrade to Gold Preferred Guest® membership status by spending $30,000 on the Card in each calendar year

Access to private sales with select Starwood retail outlets

The new Business Card incorporates all of the improved benefits of the Starwood Preferred Guest Credit Card, as well as programs and services tailored specifically to the needs of small business owners, including the OPEN Savings(SM) program which was designed specifically for small businesses and gives automatic discounts on purchases at OPEN Savings(3) partners, such as Delta, FedEx Kinko's and JetBlue. In addition, the Business Card provides expense management reporting, an online spend tracking system and spending limits on additional cards that aid in better managing employee spending.

Both Cards showcase a new vibrant design to reflect the American Express brand, as well as Starwood's brands, which include St. Regis®, The Luxury Collection®, Sheraton®, Westin®, Four Points® by Sheraton, W® Hotels, Le Méridien® and the recently announced Aloft(SM) and Element(SM) Hotels.

'We are excited about the expansion of our partnership with American Express and know that our mutual consumer and small business customers will appreciate the enhancements that the Starwood Preferred Guest Credit Cards bring to the Starwood Preferred Guest program,' said Robin Korman, vice president, Loyalty Marketing at Starwood Hotels & Resorts Worldwide. 'The benefits of both cards truly reflect our dedication to the principles that have made Starwood Preferred Guest an award-winning program - to set a benchmark in the industry and deliver the most generous and flexible award earning opportunities available.'

'In listening to our customers, they told us they want help managing rapidly rising travel costs and using rewards to offset travel expenses,' said Raymond Joabar, senior vice president and general manager, OPEN from American Express. 'The Starwood Cards from American Express offer consumer and small business Cardmembers one of the most lucrative rewards program with no blackout dates.'

Additional benefits for both Cards, include:

One (1) Starpoint for every eligible dollar spent on the Card

Redeem Starpoints at over 825 participating Starwood hotels and resorts in 95 countries with no black out dates – if there's a standard room it's yours.

Transfer Starpoints to over 30 frequent flyer programs, most on a one-to-one basis

Receive 5,000 Starpoint bonus when you transfer 20,000 Starpoints to miles(4)

First year fee-free, and $30 annual fee thereafter; fee-free additional cards

Automatic enrollment as a Starwood Preferred Plus member

Receive a 50% off certificate, good towards a Starwood hotel stay, upon Card approval and annual renewal

No limit on the amount of Starpoints a Cardmember can earn

Competitive Introductory purchase Annual Percentage Rate (APR) for six (6) months

Retail and travel protections such as Global Assist, Car Rental Loss & Damage Insurance, Purchase Protection Insurance, Travel Accident Insurance, American Express Card Baggage Insurance, Buyers Assurance Plan, Express Cash Emergency Card Replacement, Emergency Check Cashing, and 24-hour customer service. For these and other benefits visit spg.com/americanexpress, terms and conditions apply.

The new Starwood Preferred Guest Business Card and enhancement to the Consumer Card are an expansion of the existing relationship between Starwood and American Express. The new Cards make it easier than ever for consumers and small business owners to quickly earn exceptional travel rewards through spending on their cards. Starwood and American Express have enjoyed a strong cobranded card partnership since 1996, when American Express first launched the ITT Sheraton ClubMiles Card.

The Starwood Preferred Guest program made headlines when it launched in 1999 with a breakthrough policy of no blackout dates and no capacity controls, meaning members can redeem free nights anytime, anywhere.
The program also offers members the ability to redeem awards at more resorts, more luxury properties, more European hotels and more golf properties than any other hotel program, which has proven to be a big draw for the world's most frequent travelers, and a significant competitive advantage.

(1) To be eligible to receive 10,000 bonus Starpoints, you must make your first purchase with the Starwood Preferred Guest Credit Card within one year of Card approval. Bonus Points will appear on your Starwood Preferred Guest statement 8-12 weeks after your first purchase. Bonus Starpoints are for first-time Starwood Preferred Guest Credit Cardmembers only. You may have more than one Starwood Preferred Guest account, however, if you have or had any such account you are not eligible to receive bonus Starpoints you may be offered for any other such account.

(2) You will receive one additional Starpoint for each U.S. dollar of Eligible Spending charged on your Card Account at Starwood branded hotels and resorts then participating in the Starwood Preferred Guest loyalty program, and at stand-along retail establishments and on-line stores that, in each case, are wholly-owned by Starwood Hotels and resorts Worldwide, Inc.

(3) OPEN Savings(SM): Payment must be made with an American Express® Business Card. Savings will be credited to your American Express Business Card billing statement. All savings referenced are in addition to any offers made by participating companies. Participation and offers are subject to change without notice. Terms and conditions apply. For more information and the full OPEN Savings partner terms and conditions, please visit opensavings.com.

(4) A 5,000 Starpoint bonus is based on airlines with a 1 Starpoint to 1 mile conversion rate; equivalent bonus will be awarded in accordance with other airline conversion rates."

More Ways to Save with American Express Business Cards

noreply@blogger.com (Steve Brown) — Thu, 28 Sep 2006 08:43:00 +0000

The great thing about the OPEN Savings® rewards program from American Express® is that it's automatic: no coupon-clipping, no program enrollment -- the way it should be! No one likes to be forced to work for a discount; no one I know anyway.

The OPEN Savings rewards program is available to any American Express business card holder: both American Express charge cards and credit cards are included in the OPEN Savings network. And the savings can be significant.

The OPEN Savings program has allowed American Express business card holders to enjoy $100 million in savings since 2004. Not bad, eh?

Yup, the folks at American Express get it.

OK, so here's today's news (great news if you are a frequent flier): both JetBlue Airways and Delta Air Lines are now partners in the OPEN Savings program. More details below in the clip from a recent press release:

"OPEN from American Express^SM today announced a significant expansion of its OPEN Savings® program with the launch of airline partners Delta Air Lines and JetBlue Airways. OPEN Savings gives small business owners automatic savings virtually every time they use an American Express® Business Card to make purchases at any OPEN Savings partner.

Small business owners using any American Express Business Card can now reduce their travel expenses with an automatic 3% discount on the total cost of Delta and JetBlue flights. In addition, Cardmembers who purchase Delta flights with the Delta SkyMiles® Business Card or SkyPoints Delta Business Card, or who purchase JetBlue flights with the JetBlue Business Card, will receive an additional 2% discount, for a total savings of 5% off the total cost of Delta or JetBlue flights. Available to new and existing Business Cardmembers, these discounts are Card benefits -- not limited-time offers -- and apply to all flights booked directly from Delta or directly through any JetBlue channel.

OPEN Savings has delivered more than $100 million in savings to American Express Business Cardmembers since 2004. OPEN Savings eliminates the need for offer codes, coupons or program enrollment and provides automatic savings from well-known brands. Savings can also be combined with other marketplace offers or volume discount pricing that businesses may
already be receiving from program partners.

'Delta is pleased to expand our relationship with American Express and offer our customers an opportunity to save money for their small business while earning miles at the same time,' said Jeff Robertson, managing director of the SkyMiles Program. 'Our partnership with American Express continues to add to the multiple benefits offered to our SkyMiles members worldwide.'

'By the end of 2006, JetBlue will have introduced new service to 14 new destinations that our customers who travel for business tell us are important,' said Andrea Spiegel, JetBlue's vice president of Sales and Marketing. 'We are pleased to now offer our customers an easy way to save even more money when they fly JetBlue for business, through our exclusive partnership with American Express.'

'With the addition of these new partners, small businesses can effortlessly reduce their airline expenses just by using their American Express Business Card,' said Raymond Joabar, senior vice president and general manager, OPEN from American Express. 'Time-pressed small business travelers who are weary of coupons or special offer codes now have a better and simpler way to save, with OPEN Savings' automatic and combinable discounts. These two new OPEN Savings airline partners can help substantially increase the millions of dollars in savings that we're already delivering to our small business Cardmembers.'

OPEN Savings is a benefit embedded within all American Express Business Cards. American Express Business Cardmembers simply need to use their credit or charge card for purchases with any OPEN Savings partner to take advantage of discounts. The savings will automatically appear on the Cardmember's monthly statement and can be tracked at http://www.opensavings.com. OPEN Savings discounts are calculated on the full transaction amount, including any taxes and surcharges. Terms and conditions apply.

Partners and discounts include:

New Airline Partners

Delta Air Lines: 3% off flights (plus 2% extra with co-branded Business Cards)

JetBlue Airways: 3% off flights (plus 2% extra with co-branded Business Cards)

Travel and Dining

Hyatt Hotels & Resorts: 3% off hotel charges

Hertz: 5% off car rentals

Courtyard by Marriott: 5% off hotel charges

Fairfield Inn by Marriott: 5% off hotel charges

SpringHill Suites by Marriott: 5% off hotel charges

Wingate Inn: 5% off hotel charges

Ruby Tuesday: 5% off dining

eSkyGuide: 20% off eSkyGuide software

Supplies and Services

FedEx: 5% off Express and Ground shipping

FedEx Kinko's: 5% off business services

AT&T: 5% off local & long distance services

1-800-FLOWERS(R): 5% off floral and gift purchases

American Express: 3% off American Express Gift Cards

Business Building Tools

BizFilings: 20% off incorporation and registered agent services

Ceridian: 20% off payroll preparation

Constant Contact: 15% off e-mail marketing

ExpensAble: 25% off expense reporting software

LogoWorks: 15% off logo and graphic design

Terms and conditions apply."

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

noreply@blogger.com (Steve Brown) — Tue, 15 Aug 2006 17:45:00 +0000

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."

Massachusetts Sales Tax Holiday Snubs Business Credit Cards!

noreply@blogger.com (Steve Brown) — Mon, 07 Aug 2006 13:59:00 +0000

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."