Things to know about a business credit card
A business credit card is a type of credit card issued for enterprises by a bank. Accordingly, the bank shall give the enterprise a card credit limit within the short-term credit limit of the enterprise or based on the value of its collateral. Based on the granted card credit limit, the enterprise shall authorize some employees to use the card for covering the enterprise's operating expenses. Each authorized employee shall have his/her name on a supplementary card linked to the card credit limit of the enterprise and spend within the limit specified by the enterprise.
Issuing business credit cards is a form of credit extension for enterprises; compared to loans and disbursements in cash or bank transfer, where enterprises need to present disbursement or advance dossiers, using business credit cards is much more convenient. Each swipe is one disbursement without presenting any documents to the bank. The use of business credit cards may enable enterprises with a more convenient and easier payment method in areas requiring complex accounting procedures such as payment of online advertising costs, air tickets, taxi, etc. Especially, if enterprises can actively calculate the transaction time and repayment time, they may also take advantage of the bank's credit capital with the maximum interest-free period of up to 45 days.
Conditions for issuing business credit card
Depending on the issuing bank, the conditions for opening a credit card for enterprises will vary. Normally, to ensure competition, banks do not disclose specific conditions. However, because the nature of business credit cards is basically to provide credit to enterprises through cards, this will also comply with the conditions for granting credit to enterprises, for example: Time of establishment of the enterprise; revenue for the latest months up to the time when the card credit limit is considered; enterprises are profitable, have no bad debts and maintain good capital status in the nearest application time, etc.
Benefits of business credit cards
- - Time and cost saving: Save time for mobilizing cash, paying the exact amount for partners. The expenses of an enterprise are often of great value, so it will take considerable time to mobilize the cash resources to cover these expenses, the management of large amounts of cash is also often troublesome or causing unavoidable cash loss.
- - Effective expense management: This type of card will separate the expenses of individuals and enterprises. All expenditures will be saved by the bank and a statement will be sent to the enterprise when it comes nearly to payment due date, especially individual and corporate spending transactions are separated with a clear description, therefore; thus it will be easy for the enterprise to track all information about expenses and spending purposes.
- - Minimize cash risk: Owning credit cards, business card users may avoid situations of being robbed or dropping money on traveling.
- - Receive incentives and promotions from banks, card organizations, and partners: When issuing business credit cards, customers will receive regular incentives from banks, card organizations and partners to encourage card use.
How to safely use a business credit card
In essence, business credit cards and personal credit cards differ only in the subjects granted credit while the use of cards is the same, therefore; business credit cardholders should also note a few points when using the card as follows:
- - Carefully check to make sure your card information is the same as registered
- - Sign on the signature box on the back of the card the same to the signature registered with the issuing bank right after receiving the card and use this signature when making a transaction.
- - Secure confidential personal information such as full name, address, date of birth, ID card number ... and card information such as card number, expiration month, CVX authentication number, CVV2, PIN, etc.
- - Carefully maintain your card, refrain from giving your card to others to avoid the risk of card information disclosed/card stolen, which may lead to fraudulent transactions.
- - Call the customer service center of the bank immediately to request a card lock when a card is found stolen, lost, seized (by ATM or other organization/individual) or suspected to be abused.
If you do not receive your credit card account statement, immediately call your bank Hotline to request a statement.
Currently, Bank for Investment and Development of Vietnam (BIDV) has implemented BIDV Visa Business credit card which possesses many outstanding features compared to similar products in the market. While other banks' business credit cards are controlling the maximum number of supplementary cards, with BIDV Visa Business, enterprises can offer an unlimited number of supplementary cards and credit limit up to VND5 billion. Therefore, BIDV is one of the two banks offering the highest business card credit limit in the market.
When requesting a credit card issuance, annual fee, transaction fee, and interest rate should also be carefully considered by the cardholder. However, with BIDV Visa Business credit card, customers are ensured security due to extremely competitive fees. For example, the interest rates of the other big banks in Vietnam range from 15 to 17%; that of the small commercial banks and foreign banks are up to 27%. However, at BIDV, the interest rate is very attractive at 16% p.a. and the fee stands at 2.1% of the transaction amount.