You have probably heard about some of the protection afforded consumers under the new credt card and banking regulations enacted by the Federal government under the CARD Act. What you may not know is that they might not mean a heck of a lot to your small business credit cards. According to Bloomberg Business Week's Jim Tozzi, surveys of the nation's leading banks indicate Bank fo America appears to be the only one extending the protection.
Credit card comparison website Card Hub polled the banks, and found their intent and working relationships with small businesses will remain as it was before. Card Hub's CEO Odysseas Papadimitriou responded to Mr. Tozzi that, "Small business owners get the worst of both worlds: They’re fully liable and they’re fully unprotected." Sky hiugh interest rates, hikes with littel to no warning, and tack on fee after fee all appear to be around for the long haul for small businesses.
The realtiy is that for many small businesses, credit cards serve as alifeblood for cash flow. Many of us would be hard pressed to operate a business at all with out a credit card. Ordering online would be insanely restricted. Travel by cash or check only seems a nightmare as well. Layer in security warnings about the hazards of using your debit card online and we really have few options a side from plastic.
The moral of the story is to BE AWARE. When those little paper inserts come in your bill, read them. If you get online statements, scroll through to the end read notices. Don't assume your personal and business accounts are under same policies, even if using the same issuing bank for each.
For the full text of the article, visit Bloomberg Business Week.
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