When
you own
a small business you are, undoubtedly, going to use a credit card for
some of
your purchases. What all business owners need to keep in mind is that
these
cards do not offer the same protections that personal credit cards
offer.
When you own
a small business you are, undoubtedly, going to use a credit card for some of
your purchases. What all business owners need to keep in mind is that these
cards do not offer the same protections that personal credit cards offer.
First and foremost, these cards do not have the
same identity theft protection features that other cards include. If someone
makes unauthorized charges to the card the business is still responsible for
the amount. There is no consumer protection attached to these cards. You must
be very careful when using them.
Interest rates and fee limitations are not
controlled on these cards like a personal card. You can not contest a spike in
your interest or increase in fees like a personal card. Business credit cards
have not been included in this legislation.
Finally, if you should have trouble with any
representative from the company regarding payment or processing of your cards,
you do not have consumer protection. The FTC does not offer any protection from
unfair trade practices to a business credit holder.
If you are a small business, it is in your best
interest to have a personal card that you use strictly for business purposes.
If you designate a card in this fashion you will be given the FTC protections
and still have the tax credits for your business expenses. The trick is to only
use the card for your business and nothing personal – ever. This keeps your
books straight and your receipts in order for tax time.
