If you’re an American consumer, then the law often works in your favor, at least as far as credit cards are concerned. Private citizens enjoy various protections designed to prohibit unfair practices and limit abusive creditor activities.
You’re a business leader, however, and unfortunately, you don’t get to reap the same advantages even if you’re using one of the best corporate credit cards available. Make sure you understand how the following legal nuances apply to you.
Yes, it’s illegal for one of your employees to dip their fingers into the corporate coffers without permission and use the proceeds for unauthorized purposes. This doesn’t mean, however, that the companies they double-cross walk away scot-free.
Federal law states that cardholders aren’t liable for unauthorized spending above $50. Unfortunately, this doesn’t prevent discontented workers who were previously authorized to use your card from committing gradual theft that eventually piles up. The rules also limit how you can impose unauthorized purchase liability on employees. Since you have to notify the bank of problems within a certain time frame, you may suffer disastrous revenue consequences or have to assume the costs of civil lawsuits.
You might be thinking that evolving consumer protection laws, which often include sweeping measures to safeguard cardholders, work in your favor, but beware: Never assume that new rules will improve the realities of using credit cards for business. For instance, the Credit Card Accountability, Responsibility and Disclosure, or CARD Act, of 2009 notably excluded small business cardholders.
The future of the legislative landscape remains as unpredictable as ever for those who use business credit. If you’re one of the millions of small businesses and merchants that lack the lobbying power held by banks, credit lenders and similar entities, then the fight for positive legal change may be a long, uphill battle.
Credit usage is a problem for companies because it’s inherently unpredictable. No matter how necessary a given purchase may be, you’re borrowing money to complete it.
Predictive risk formulas aside, traditional card issuers have little recourse besides putting you and your company through the ringer with tough applications to ensure that you’re a safe bet. Although it’s arguable that some overstep the bounds of fairness by imposing high fees, surcharges and penalties, few legal scholars would claim that they’re doing anything unlawful in the process.
In short, the stage is set for a significant change, and the best corporate debit cards are delivering. By redefining the fundamental workings of corporate payment systems with a focus on debit funding, Bento for Business:
With so many advantages, it’s a small wonder that companies are drifting away from the best corporate credit cards towards debit-backed options. Bento for Business lets you trade the uncertainty of an unfriendly regulatory credit landscape for the simplicity of a system that does away with the unknowns. It only takes about 60 seconds to sign up, and you can try it for 60 days free of charge, so get started now.
Applying does NOT affect your credit score!*This is not a credit card.
Banking services provided by The Bancorp Bank, Member FDIC. This Card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A Inc. and may be used everywhere Visa® debit cards are accepted.