Businesses Declare War on Debit Card Swipe Fees - Other News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Businesses Declare War on Debit Card Swipe Fees

Businesses Declare War on Debit Card Swipe Fees

Add to Favorites:
Businesses Declare War on Debit Card Swipe Fees

The Credit Card Act of 2009 put safeguards in place for consumer credit cardholders; however, those same safeguards don’t extend to business cards. As a result, many consumers who take advantage of business credit card offers may put their personal credit at risk. Also, issuers of business credit cards are allowed to change the terms within the first year, which is something most consumers don’t know. Some members of Congress, such as Nina Lowey, a democrat from New York, are asking Congress to extend the same protections for small businesses that they do for consumers.

Personal Liability

Even when consumers apply for a business credit card, the individual who signs the application is still personally liable for the management of the account. This is true whether you apply for a business credit card as an employee of a company so you can pay for business expenses or as a small business owner trying to separate your personal and business expenses. Consumers may be confused by this separation. Thedirector of the Pew’s Safe Credit Cards Project, Nick Bourke, blames the advertisements that credit card companies send out to entice people to apply for cards as the cause of this misunderstanding.

Credit

You will notice when applying for a business credit card that the application requests your personal information, such as your home address and social security number. When the business credit card is issued, the account shows up on your personal credit report as one of your credit card accounts. Payments and balances on the card are also reported to the credit bureaus and show up on your credit report. All of this means that actions pertaining to the business cards do affect your personal credit score.

Small Business Card Act

U.S. Rep. Nita Lowey proposed the Small Business Card Act to extend credit card protection to small business credit cardholders, as the Credit Card Act of 2009 does for consumers. Some ways that the act would protect business cardholders if it passes into law include:

  • Requiring a reason for interest rate increases
  • Putting proper notification procedures in place if a credit card issuer intends on increasing the interest rate or terms of the credit card
  • Prohibiting interest rate increases on existing credit card balances
  • Prohibiting interest charges on debts that are paid by the due date
  • Requiring that any payment amount over the minimum payment due apply to the balance with the highest interest rate.

Until changes are made, consumers need to use caution when applying for business cards and make sure they fully understand the limits on their personal protections. Dozens of the top credit card issuers have promotional rates and other incentives on consumer credit cards, according to Credit-Land. These cards may offer a better fit for prospective cardholders since they offer the full protections from the Credit Card Act of 2009.

Add to Favorites:

Related News:

Checking Credit Scores May Improve Financial Health

Posted: June 27, 2017

If you have been wondering if you should check your credit score more than once a year, according to a new study by Discover, the answer is yes. The study found that 70% of people, who checked their score on a monthly basis, or even more ... Continue reading
Some Mobile Banking Apps Score Better with Consumers Than Others

Posted: June 26, 2017

With banking and mobile payment apps increasing capturing consumers attention, the new J.D. Power 2017 U.S. Banking App and U.S. Credit Card App Satisfaction Study illustrates that some are doing better with consumers than others. When it ... Continue reading
Interest in Mobile Payments on the Rise

Posted: June 23, 2017

Consumer interest in using connected devices outfitted with payment technology is growing in a market where voice-controlled assistants and wearable devices are becoming part of the cultural landscape, according to a new study by Visa. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. Bonus Miles - For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee
For Bad Credit