The Credit Card Act’s Effect on Small Businesses: Minimal at Best

The Credit Card Act, which was put into effect earlier this year, has tightened up bank regulations for both consumer and small business credit cards. Some reports claim these protections have really just helped consumers, leaving small businesses in the lurch. This story gets into the nuts and bolts of why the law is clearly pro-consumer. Small business credit card rates are increasing at an alarming rate and the research is there to support it.

There’s really no way for the owners to protect themselves, short of switching their spending tools to business prepaid debit cards. If this is a path owners choose, they will never have to worry about surprise interest-rate increases or any increase at all. There are no transaction fees, no interest charges, no card issuance fees and no IT integration expenses. Additionally, administrative costs of cash advances and reimbursements become significantly lowered and the risk of unexpected overdraft charges are eliminated.

Toffer Grant is PEX's Founder and CEO. He founded PEX in 2006 as a prepaid card solution for small businesses. His background in the prepaid industry began at Clarity Payment Solutions, where he initiated 65 prepaid card programs in consumer, corporate, and emerging verticals of the prepaid card industry.