Making purchases with business card is a convenient option for many businesses. The different types of business cards include debit, credit, charge and purchasing cards. When you have decided which type of business card you are looking for, you need to know how to choose the right business card provider.
Debit card are chosen by most businesses. Your business card provider is most likely to offer a debit card as a part of the package. The leading names of debit business card providers currently are Visa cards and prepaid MasterCards, Cash2Go, Cashplus, and Amex Travellers Cheque Card along with I-Money and I-Travel. However, for other types of card it is worth considering a wide range of business card providers aside from your own bank.
Business Charge Cards
Acquiring a business charge card is part of the process of owning your own business and offered by most business card providers and companies such as Barclaycard, American Express and Diners Club. A period of credit is allowed, but must be paid off in each month. You will pay an annual fee, usually at least ?35. Many business card providers offer prom on rates and charge cards or even merchant accounts. Examine different deals with these key points.
?How much is the annual fee?
?Do they charge for every card holder?
?Can they give cards individually to some employees?
?What are the minimum and maximum spending limits?
?Do they charge penalties for late payment of your bill?
?Are there on-going special offers that would be useful to your business like Air Miles or hotel discounts?
The same rules apply when choosing a business card provider for your business credit card. You have to compare interest rates or what they call as the annual percentage rate (APR) - on different deals. Consider also the length of any interest-free period. The business card providers for credit card are Visa credit card and MasterCard. You can search online and compare business card provider's deals on credit cards.
Purchasing cards are for big businesses or public-sector bodies. Issued by companies such as Barclaycard and American Express, and designed to avoid using purchase order forms and the associated paper work. While you wait for your business bank account to be set up, you might decide to use a personal debit or credit card instead of a business card to pay for purchases. However, business debts will be mixed with personal debts and it will be difficult to track business expenditure.
Whichever type of card you are looking for, it is best that you scout and negotiate for the best deal offered by business card providers. Benefits, interest rates, interest-free periods, and charges offer significant differences. Your business card provider may be flexible in amending their terms if you compare benefits with other providers. Be careful of the drawbacks you might encounter like card fraud and debt. Even if it is your employees fault, your business will still be responsible for the charges.
