Top Business Credit Card Fees You Should Never Ignore

Never Ignore These Business Credit Card Fees

A credit card can be an asset to your small business's finances. But read on for a few pesky fees that are best avoided.

Opening a credit card account for your small business

can be a really good move. You can take advantage of perks like getting to keep your personal and business spending separated (a big help at tax time), establishing good credit for your business, and having a new way to manage your cash flow.

Foreign transaction fees

Foreign transaction fees are charged to cover the cost of processing payments using banks in other countries, and they often amount to around 3% of the transaction amount.

Late fees and penalty APRs

Just like personal credit cards, business credit cards have the potential to cost you a lot of money if you don't keep up with payments. If you carry a balance, you'll be charged a late fee as a percentage of it. Penalty APRs can come in closer to 30%.

Annual fees

Cards with an annual fee usually pay a higher percentage of cash back or rewards on your spending. If you're just getting your business off the ground, it might be a good idea to stick with no annual fee cards, at least to start with.

Is your business eligible for a credit card?

You can qualify using your own Social Security number. Take the time to assess all the fees you could be subject to and make informed decisions to avoid unnecessary expenses.