August 24, 2013
By ODYSSEAS PAPADIMITRIOU, CEO of CardHub
When Rep. Nita Lowey, D-N.Y., introduced the Small Business Credit Card Act of 2013 to Congress back in June, she was attempting to right a wrong that has persisted since the original CARD Act took effect in October 2010.
The landmark law, which has increased transparency and bolstered consumer rights throughout the credit card industry, does not apply to credit cards branded for small business use. And while Lowey’s bill has the potential to correct this oversight, it has only a 1 percent chance of being enacted, according to GovTrack.
The roughly 37 percent of small business owners who leverage credit card debt each year must therefore learn how to get by without important legislatively provided rights if they wish to achieve debt stability and avoid losing money. CardHub conducted a study analyzing the small business credit card policies employed by the nation’s 10 largest issuers, and the five major takeaways are listed below.