Common Fees for Business Cards
There are great benefits to business credit cards like they are known for offering special 0% Introductory rates and good rewards. Business cards are available to both large and small business. Business credit cards are different from personal cards. The cards are geared towards businesses which makes them function in a different ways then your typical credit card. One different way they function is by the fees they charge. There are some fees that work similar to personal cards and some fees that don’t. This article offers an explanation of common fees for business credit cards.
- Application Fees: An application fee is not all that common anymore but some cards to charge it or at least they could. It is a fee you pay when your application is processed. The fees can range anywhere from $20 to $75. Generally, the fee is used to cover the cost of running the business credit report and other background information.
- Annual Fees: There are many personal cards that offer no annual fee or even no annual fee for the first year. However, most business cards do charge an annual fee. Some cards charge a preset amount for the fee and some cards base their fee on other things like: the credit limit on the card, the size of the company, the amount of transactions the credit card company can expect to handle. The idea behind this is the larger the company the more transactions the card issuer will handle so the higher the annual fee will be.
- Late Fees: If the business card payment is not made on time an late fee will result. With these late fees other things can be a factor like the amount of time the payment has been late. The late fee could increase after each month that it has not been paid. There are some cards that charge a standard late fee of a certain dollar amount or they will charge a percentage of the past due amount. This could seriously increase your late fee.
- Over The Limit Fees: Like with personal cards, if the business card exceed their credit limit the card is going to get a late fee. These fees can be much higher than the late fee for a personal card. If the business card has a very high credit limit then the chances of going over the limit are going to be less likely, but it is still possible.
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