Don’t expect reward points of small business cards anymore
There is hardly anyone today who is not tired of the innumerable fees levied by banks on just about any type of account. Any transactions you would like to do has a specific fee associated to it. While customers are used to certain fees like the ATM fees, checking account fees and deposit fees, banks are now contemplating on levying fees none of us have every heard in the past. One such fee is the fee for keeping cash in the account without utilizing it.
If you are a business entrepreneur keen on either starting a new business venture or expanding the current one and you are planning on applying for a business credit card to reduce your financial burden, here is some news for you! Banks are now reducing the number of perks being offered to small business credit card holders.
Customers applied for small business credit cards because of the reward points that were being offered on every purchase made using the card. Though the amount that consumers were expected to spend to avail these cards were on the higher side, most of them did not fret since the perks were good. The fact that the points accumulated could help them redeem some merchandize without having to pay for it was lure enough to get them spending.
However, if JP Morgan and Wells Fargo get their way, the same people who used to adore their credit cards might begin hating the very sight of it. These are two major banks in the United States that were offering rewards points to customers liberally. Wells Fargo offered one point for $4 spent on the card which could go up to 16 points if customers used their card at certain select retailers. The bank also levied a moderate $12 for these rewards every year. But for those who used their card regularly for business purchases hardly found this fee significant. Though the card is still being offered to customers the rewards have been stopped.
JP Morgan, which used to offer lucrative rewards on business cards, has also stopped their rewards program. This program ceased a month before Wells Fargo made their move. Other banks that have taken a cue from these banking major and pulled back reward programs on small business credit cards are the Sun Bank Trust and a few other financial institutions.
