STOCKTON – Credit card comparison website CardHub released its 2015 small business credit card report, April 22nd. Among some of the findings in the report was that 37 percent of of small businesses rely on credit cards for funding for at least part of their businesses. Despite that fact, the report found the most basic consumer rights are not afforded to small businesses using credit cards.
Arbitrary rate increases on existing debt are common according to the report. Also, major credit card companies hold customers personally liable for business credit card debt. Card issuers also use personal credit data to determine business credit card eligibility.
The report found that Bank of America was the most small business friendly of the big providers, extending all major Credit Card Accountability Responsibility and Disclosure (CARD) Act protections to its business-branded cards.
Bank of America and Citi Bank are the only two major issuers that do not report business card activity to customers’ personal credit reports
Discover, U.S. Bank, and Wells Fargo were the least small business friendly credit card companies according to the report. Those companies extended just 30 percent of CARD act protections to its business customers.
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