Credit Card Processing

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By creditwriter Credit card reward programs could provide the competitive edge that your business needs to succeed. With a credit card reward program you’ll accumulate points each time that you use your business credit card to make a purchase. Reward points can later be redeemed for discounts, merchandise, airline miles, or even cash. 

To find the best credit card reward programs for your business needs, you’ll need to consider the following:

1.  Compare credit card reward program point values.
2. Determine credit card interest rates.
3. Accumulate reward points before redeeming them.
4. Discover whether there are credit card fees.

Action StepsThe best contacts and resources to help you get it done.     

Compare Credit Card Reward Programs
Not all credit card reward programs are created equal. Rewards vary not only by type, but also by how quickly they accumulate. Be sure that you understand what rewards are available through your credit card’s reward program and choose the program that best meets your business’s needs.

I recommend: Explore the credit card rewards that offer the best options for your needs. Here are some to consider.
Citi Dividend Platinum Select
American Express SimplyCash Business Card
Advanta Business Platinum w/Cash Back Bonus  

You can also use MSN Money’s Credit Card Analyser to find a great deal.

Determine Credit Card Interest Rates
A reward program isn’t very helpful if you’re paying a high interest rate on your credit card balance. There are two types of interest rates: variable and fixed. A fixed interest rate does not change very often. The card issuer will notify you of changes. A variable interest rate is tied to an economic indicator, such as the prime rate. If you maintain a balance on your business credit card, a fixed interest rate is generally best. 

I recommend: You can use the following web sites to compare interest rates.
Apex Credit Cards
Credit Cards

Don’t Forget About The Grace Period
A grace period is the amount of time that you have between the time that you charge a purchase and the time that the credit card company begins to charge you interest. If you pay your entire card balance in full each month, then you may be able to avoid paying interest charges altogether.   

I recommend: The Federal Reserve Board offers information about credit card grace periods as well as credit card interest rates and fees.

Accumulate Points
Regardless of how you use your reward points, you will get the most value by allowing your points to accumulate, rather than by cashing them in frequently. 

I recommend: Use a credit card calculator to help you find the best rewards program for your spending habits. Here are two to check out:
Credit Card Tune-Up
Ask Mr. Credit Card    

Find the Lowest Fees
Credit cards can charge a variety of fees ranging from annual fees to late payment fees to fees for going over your credit limit. Credit card fees can eat into any benefits that you might get from your credit card’s reward program, so it is best to look for cards with low or no fees. 

I recommend: Credit card companies are starting to introduce cards without fees. One of these cards is American Express Clear 

Tips and Tactics
Helpful advice for making the most of this Guide

•  Remember that high interest rates or credit card fees can offset the value of any rewards that you receive.
• Understand what you want to use your reward points for and choose your business rewards credit card accordingly.
• Allow your rewards points to accumulate so that you can redeem them for higher value items.
• Avoid paying interest charges by paying your credit card balance in full before the end of your credit card’s grace period.