It’s been a long time coming, but credit card companies are finally specifically targeting their business competitor — checks. As credit card issuers begin to increasingly offer credit cards to small business owners, they have noticed a trend – credit cards only account for about 5% of the $4.9 trillion small business owners spent in 2006.
According to the senior vice president of small business products for Visa, checks and check writing are the main competition. In response to the competition, credit card companies have begun offering more unique card benefits to compete with check writing and to win small business owners over. For example, many small business credit cards currently on the market offer up to 5% in cash back rewards on purchases such as gasoline and office supplies. Many cards are also offering discounts to cardholders on overnight shipments and other services small business owners often use.
With credit card companies vying so aggressively for the business of small business owners, there is no time like the present for these owners to get on the credit card bandwagon. A credit card can provide quick money in a pinch for goods or services that are needed quickly. In addition, with the cash back rewards and other benefits associated with these credit cards, a small business can actually look at using one of these cards as an investment – so long as the balance gets paid at the end of each billing cycle.
When shopping for a small business card, be sure to find one that offers cash back rewards on items your business frequently purchases. In addition, if your business has the need to write checks often, make sure there are no extra fees associated with writing a check to access your credit card account. Traditionally, credit card checks have been associated with high fees and high interest rates. Remember, the credit card companies want your business and there are literally dozens of options to select from. Comb through all of your options carefully and find the card that will keep the most money in your pocket where it belongs.
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