Business Credit Cards Seeing Voluntary Protection
By Steven Gibbs
April 8, 2010
Since the beginning of the economic downturn millions of business owners across the country have found themselves without any relief from the many changes that credit card issuers have imposed. Even with the implantation of the CARD Act, business owners were one of the few that were not protected unless they were using consumer cards instead of those that were labeled as business. Now it seems that business credit cardholders are finally seeing protection of sorts, but at the surprise to many experts it is not from the Federal Government. Instead it is being offered by the credit card issuers themselves, and businesses are saying that it is about time.
When it comes to some of the changes that business owners are seeing from issuers there are now quite a few of them as some of the largest business credit card issuers have announced changes. So far we have seen changes from American Express, Chase as well as Bank of America (who was the most recent to make changes). With these changes we are seeing the extension of time between the billing statements’s closing dates and when payments are actually due. In addition to that we have also seen in Bank of America’s case, that there will no longer be fees for going over one’s limit as well as rate increases on existing balances.
As business credit cards have become the lifeline of sorts for millions of owners both large and small, there is no doubt that these changes are more than welcome. While these are just three of the national issuers, there is no doubt that others will be soon to follow. The only question that remains is that since these changes were done voluntarily, how will the issuers make up for revenue that could potentially be lost by making such a move?