Business credit cards can be very useful tools for small business owners during startups, emergencies, travel,or even in the everyday running of a company. While business credit cards work very similarly to personal credit cards, there are several important benefits of using a card specifically tailored for small businesses for work related expenses instead of a small company owner using a personal credit card or an alternate payment option. Several of these important benefits include:
Increased Credibility - Business credit cards can make a small storefront or online company seem more established and therefore more legitimate than other methods of payment. Using these specialized cards can also contribute to a positive credit rating which, when used wisely, can build future trust in the company.
Convenience - If money is needed immediately, such as in a work-related emergency, last minute travel, or unexpected expenses, a business credit card can be very convenient if cash isn't readily available. It is often difficult for new companies to obtain a business line of credit, so having a specialized credit card on hand can be very helpful.
Book-Keeping - When these cards are used for company purchases, the credit card issuer automatically keeps a record of all transactions. These records are then sent to the owner in a monthly statement. This is especially useful during travel or when entertaining potential clients. These are situations when the business owner's focus might not be on recording all expenses as is necessary.
Time Saving - Just like with personal credit cards, company credit cards allow a business owner additional time to pay for expenses incurred rather than paying in full all at once, making them ideal for large purchases.
Security - Just as with personal credit cards, business credit cards offer some protection on purchases by an owner, where other forms of payment such as cash would not offer the same protection. This can come in handy if the company owner received defective purchases but was not able obtain a usual refund from the supplier, or if there were problems with travel arrangements while on a business related trip.
Additional Perks - Business cards can offer similar advantages as personal cards, such as cash back rebates or frequent flyer miles which often are very handy for frequent travelers.
In short, business cards offer all the benefits of a personal card, with some additional benefits that a company owner would appreciate. It is recommended that owners keep at least one business credit card account on hand for the reasons stated above.
While physical robbery of a credit card is a part of this crime, it is only a small part. Theft of credit card numbers are far more easily done and more proliferate in today's society. It can occur in a situation as simple as ordering a pizza. Or paying for a dinner, or purchasing items in a retail outlet. It can even happen online or in any situation where the card need not be swiped.
All that is really needed is the number and the key code located on the back of the card and the thief can begin making illegal purchases. The theft of the credit card can have far reaching implications like taking out loans, rent a house, and even attain citizenship through fraudulent means. In short, stealing a credit card can be identical to stealing someone's identity.
All of this can mean awhole lot of trouble for the card owner down the road. Should their credit card be used to commit some other crimes, then the card owner could be asked many awkward questions. It can damage the owner's credit rating, and damage any future chances for a loan. It may even have a negative impact on the card owner's job prospects.
The least of these negative impacts will be that the card owner will have to pay for charges that they never made. Though, to my understanding, the credit card companies are getting more active about these fraudulent charges.
The first step to be taken in protecting your credit card, is to trust noone with it. Not friends, not family. Noone. This will go along way in ensuring that your card number does not fall into the wrong hands.
The second step it to never reveal your card number publicly. Do not IM it and not over the phone. If you are asked to verify your account by your credit card company, use alternate information such as your birthdate.
The third step is to destroy all credit card statements(and all financial statements) once they are paid and duly accounted for. This can be done properly by using a shredder. The best ones to use are cross cut shredders. A good rule of thumb is the smaller the pieces it makes, the better off you are.
The fourth step is to insist on online banking. This will ensure that your bank statements come to you and noone else. Always use land lines for security instead of wireless. It is always easier to protect your online statements than the one you get in the mail.
The fifth step is never do business with a website that cannot be trusted. Scammers tend to have cheap looking sites which does not have any form of secure payment method. Furthermore, ensure there is some sort of guarantee and that you have the means to return the merchandise if it is damaged.
The final step is to check your credit card statements carefully. If you see any charges you are not sure of, don't hesitate to ask. It is always better to be safe than sorry.
Both Peter Kenny & Ryan Smith are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Peter Kenny has sinced written about articles on various topics from Credit Cards, Finances and Best Money Market. Peter Kenny is a writer for Finance 123. Please visit us at and. Peter Kenny's top article generates over 368000 views. to your Favourites.
Ryan Smith has sinced written about articles on various topics from Valentines Day, Dating and Romance and SEO Articles. Ryan Smith is the author of the hot, new, blog "The 10 Commandments of ID Theft Protection" Learn more at . Ryan Smith's top article generates over 33100 views. to your Favourites.