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The Credit Card Reform Act which is supposed to protect consumers does not guarantee the same protection to business cards. Card companies may still raise interest rates and impose fees at will on business charge cards. The Card Act only applies to consumer cards. Business charge card usage has been on the rise in recent years. A report published by the Federal Reserve Bank of the United States in 1998 reported that only one third of small businesses used cards. Today that figure stands at a staggering 64%.

Card issuers have ramped up advertising efforts towards small businesses. Another study done by Synovate, reported that in the first quarter of this year alone, 46 million “businesses cards” were mailed out. That is a little over 250% increase since the first quarter of 2009. Card companies are emphasizing their efforts towards professionals and small businesses alike. However, some of these offers are also ending up with consumers as well.

Issuers are aggressively marketing charge cards to small businesses. According to Synovate, issuers mailed out 46 million professional credit card offers in the first quarter of the year, a 256% increase from the 13.2 million offers mailed during the first quarter of last year. During that same period, total card mail solicitations increased only 29%, so there is an emphasis on the business sector among issuers. Some of these professional offers seem to be crossing over and landing in the hands of consumers.

Card issuers are dancing along the fringes of the terms and conditions set forth by the Consumer Card Act by marketing professional cards towards consumers. These cards fall under the business credit card category and do not qualify for consumer protection programs recently set forth by Congress. Card companies may increase at will interest rates for any reason as well as impose unfair fines and penalties for anything from being late on a payment to going over your credit limit. “Many small businesses owners wonder why they do not get the same protection that are given to consumer credit cards. Card issuers argue that they must be able to “price loans for risk” and their inability to do so will only hinder credit and further raise rates across the board.

The National Small Businesses Association has made efforts towards enacting legislation that will also include businesses credit cards as part of the Consumer Credit Card Act. Little progress has been made in this department unfortunately. For those who plan to use their consumer cards for a businesses purchase will have trouble separating businesses from personal expenses. This can be particularly problematic during tax time or accounting. Furthermore, your businesses debt may also affect your credit score negatively. Businesses expenses that are charged to your personal consumer charge card may also raise your percentage of debt to available credit ratio. Ideally, you should have at least 30% of card limit available in order to not negatively impact your FCIO score.

As of today, Bank of America,stands as the only charge card issuing bank who extends any kind of Card Act Protection benefits to small-businesses cards. They will not raise your interest rates without 45 days notice as part of this program.

Todd Holliday is an avid writer who enjoys subjects such as

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