A lot of retailers are starting to make small business cards online and at the store in the hope that small business owners and employees can have more confidence in online transactions, says Mike Caulfield, a consumer insights and market insights analyst for Bankrate.com.
The online card may have some drawbacks.
For one, you have to pay the card issuer to issue it.
And, in some cases, the card is tied to your existing bank account.
“You don’t want to have your existing card tied to a bank account,” Caulfields says. “You don�t want to be tied to the card for any reason.”
“If you go online and you want to get a small business card, it is going to be a very expensive experience,” he adds.
“It is the biggest headache, and it is the most difficult.
The more difficult it is, the less likely it is to happen.”
The online business card is a great way to get your business card on store shelves, but it doesn’t mean you’ll always get it.
“Most small businesses have multiple accounts with multiple credit cards,” Caughfield says.
“So, you may not have a one-time purchase of $50,000 or $100,000 with your business account.
That�s what you want.
You want to make sure that you are getting the right card for your business.”
That�s why, according to Bankrate, the biggest barrier to small business online purchases is the fact that they don’t have a dedicated credit card processing account.
So, even if you are in good standing with your card issuer, the process of using it online can be a bit tricky.
“The online process can be confusing and difficult to navigate,” Cause says.
For instance, if you want a small-business card online, you must first create an account with a business credit card issuer.
This usually involves clicking on the ‘Sign Up’ link in the online card purchase page, but the process can take up to 30 minutes, so it may take a few days.
Then, you will be prompted to enter your bank account information, but if you already have a credit card in good working order, it doesn�t matter.
“And if you don�trick the bank into not doing that, it will take them a long time to process your transaction,” Cauce says.
You can still get a credit statement from your bank online, but that�s not guaranteed, so you should double check with your bank about whether or not they have a checking account or an ATM.
“If there is no checking account, or if there is a small fee associated with that account, then you will need to contact your bank to find out,” Causce says, adding that banks generally charge the fee associated to small businesses transactions, but do not have the option to refuse a transaction.
“If you have a small amount, it would be best to go with the checking account.”
If you don’t need a credit line or ATM to make your online purchase, then it will likely take you about a week to complete. “Then, it�ll be a lot easier for you to pay for the card online,” Caunfield says, and that can save you a lot in fees.
“When you are online, there is so much that you can do,” Cauces says.
If you need a small account to make online purchases, Cauls says to look into how your bank handles transactions.
If they charge a fee for transactions, you could also consider moving to a different bank.
“There are a lot more options out there,” he says.
And, of course, there are things you can still do to get started with the online business cards.
“I think the most important thing you need to remember is that there are people out there who can help you with that process,” Cade says.
You can contact your credit card company directly to find the best rate, if they do offer one.
“But, if it is a fee-free account, you can find it online or through your bank,” Cades adds.