A credit card is an instrument that allows its holder or user to acquire goods on credit or pay for services on credit, in establishments affiliated with the corresponding system, in addition to other types of benefits that may be granted. Credit refers to the fact that the card has a line of credit approved by the financial entity or company that issued the card, which can be a bank or another type of institution and it is that line that one uses when using the card.
Making a Purchase
To make a purchase with a business credit card, the card must be presented at the store where the identity of the owner of the card must be verified, through a driver’s license. There you must sign the sales ticket or enter your password in the POS. In both cases, the sales receipt establishes the total value of the purchase. A copy of this is given to the buyer, who is recommended to keep the receipt to compare later with the Statement of Account that will be delivered on a monthly basis. If charges that do not correspond are detected, the user can make the corresponding claims.
The Completed Transaction
Once this transaction is completed, the commercial establishment presents the sales receipt to the card operator to collect the value of the purchase that was made. Subsequently, the company informs the Issuer of the cards (which is the bank) about each transaction, thanks to which the latter generates a monthly Statement of Account.
Rewards and Promotions
As you can see, business credits cards work similarly to the basic credit cards. However, in many cases, the business credit cards have a higher limit of credit that the user can access to pay vendors, buy products and pay invoices. There are some business credit cards that offer the user promotions and rewards.
Conclusion
It is quite easy for the user to qualify for a business credit card compared to a traditional personal loan because the risks are fewer. With a business credit card, the user will have access to the funds once needed. The business card helps the user to build credit so as to later apply for a commercial business loan.
