CHASE - CREDITCARDS

Small Business Credit Cards vs. Corporate Cards

The term business credit card can sometimes be confusing. There are two variations on this theme—small business credit cards and corporate credit cards. Small business is a large market for credit cards since this sector is the engine driving the growth of the U.S. economy. The major credit card companies designed products specifically for small business owners and their payment needs. Corporate credit cards, on the other hand, are customized purchasing programs that are not advertised to the public and built to suit the needs of an entire business.

Corporate credit card programs

Large corporations, government entities, and charitable organizations may have fleet purchasing requirements and a large number of employees receiving credit cards. Their needs can be quite complex and dynamic, and an account team with specialized software programs usually manages the account. The plans can be compared to a large employee health care program with many options. The corporation is considered an individual under the law, so the credit cards are issued to the corporation and payment responsibility falls to the business or public organization. Employees incur secondary payment liability, and terms are typically described and enforced with human resources and administrative policies.

Small business credit card programs

Credit card companies generally issue small business credit cards in the personal name of the business principal, with the company name also noted on the card. Issuers usually base approvals for these cards on a combination of personal credit and business credit history. The individual businessperson is ultimately held responsible for the payment of all charges on the account, although the business is jointly responsible.

Fortunately, there are small business credit card programs to satisfy virtually all your small business needs and provide the types of rewards and rebates that you receive from your personal credit cards. A business credit card can become a valuable business partner.  With it, you can earn miles and travel benefits, points for purchase of merchandise or cash rebates for your business purchases using your business credit card.

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