The creation of the credit card was named one of 50 important milestones in the 400-year history of the United States economy by American Heritage magazine in March 2007, in an acknowledgment of the card’s importance to the American consumer. However, the credit card industry realized that the ease and value of the credit card in the broad sense could be extended beyond individual users. The industry began to produce card products for use by companies, from huge companies to tiny sole proprietors, based on a worldwide infrastructure and a defined set of rules and expectations that ensured payment service integrity – and, as a result, the confidence of the public.
A FairFigure business credit card connected to a company bank account is an excellent way to establish business credit because bankers report to credit agencies; it will benefit your company when you need a commercial mortgage.
In the world of consumer payments, payment cards—debit, credit, and prepaid—have had a lot of success. Cards accounted for 46% of all consumer payment transactions in 2008, up from 26.5 percent in 2000.Consumers have for some time substituted payment cards for checks, currency, and other traditional forms of payment.
Why have a Biz Cardholder?
If you operate a small business, you might use your own credit card for work costs. However, as your business expands, you will incur more expenses of various types. Doing this with your own card might be challenging. Cards can have unique benefits and characteristics that cater to the demands of companies.
Calculating the Payment Mix in the Commercial and Consumer Sectors
Statistics on the rate of card penetration for business and consumer transactions come from two independent sources. The Commercial Consumption Expenditure Index, created by Visa Inc., calculates the percentage of business contracts paid for by payment cards. The total dollar value of commercial transactions is calculated using data from the Bureau of Economic Analysis (BEA) and the Census, as well as private data from the consultancy firm Global Vision. According to the statistics, intermediate inputs account for 56% of commercial total spending, 36.5 percent of wholesale and retail purchases, 3.5 percent of private capital spending, and 4% of government capital spending, according to the statistics.
Access to financing, as well as transaction accessibility and reliability, are driving card use among small enterprises. Small firms that can navigate the present economy without much reliance on credit should be able to continue using commercial bank cards to make transactions with minimal difficulty. Challenges face those who rely on cards for financing, as well as the card issuers who serve them, not only from the credit contraction that comes with recessions but also from the possibility of a “norm these days” as the card industry and the larger economy adjust to new conditions and a changed regulatory regime.