Small businesses are the backbone of the U.S. economy, and credit card issuers have products that help them finance, procure, and transact. Small business credit cards control and report expenses with integration into many small business accounting programs; special tools help keep the financials organized.
The research report, U.S. Small Business Credit Card Forecast, 2017-2022: Healthy Market, Room for Improvement, projects that small business card will approach $700 billion by 2022. The report suggests that an additional 50 percent of transactions now posted on consumer cards could instead run on small business payment cards if small business owners realize that the dedicated cards have features suitable for running a small business.
"Some small business owners prefer to use their personal credit cards for their business," commented Brian Riley, Director, Credit Advisory Service and author of the research report. "There are some benefits to the consumer card, but when it comes to accounting for expenses and controlling usage it is hard to beat the current infrastructure," Riley added. "Issuers might accelerate movement if they give small business owners the same protections afforded to consumers in the CARD Act."
Highlights of the research report include:
- Estimated spend volume
- Shadow credit, small business spend posted to personal credit cards
- Detailed market view of co-brand and issuer small business cards
- Essential features of a small business card.
1. Executive Summary
2. Small Business Credit Cards in the U.S.: An Overview
3. Defining the Small Business Card Market
- Growth Barrier: Preference for Consumer Cards
- Small Business Card Transactions Break $500 Billion
4. Consumer Credit Cards versus Business Cards: Same, but Different?
5. Small Business Credit Cards: A 2018 Market Scan
- Small Business Charge Cards: American Express
- Small Business Secured Cards: Wells Fargo
- Small Business Co-Brands
- Small Business Offerings by National Issuers
- Small Business Offerings by Regional and Small Business Card Issuers
6. Small Business Credit Cards: A Tool for Growing Companies
7. Small Business Credit Cards: The "So What"
List of Figures
Figure 1: Number of U.S. small businesses by number of employees, and total employed by them
Figure 2: Better rewards and lower risk are small business' top reasons for using personal cards
Figure 3: Small business cards have weaknesses with regard to protections for cardholders
Figure 5: Estimated small business card transaction volume by payment network
Figure 6: Similarity of terms of small business credit card and a consumer credit card
Figure 7: Successful small business card programs have certain characteristics
List of Tables
Table 1: Small business co-branded cards, compared
Table 2: National small business co-brand issuers, compared
Table 3: Regional and credit union small business card issuers, compared