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Corporate Cards Vs Business

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Anonymous
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Corporate Cards Vs Business

How exactly do these cards differ from one another? For example, Amex has corporate cards as well as small business cards? Does anyone know what sort of features they offer to corporate customers that they do not offer to small business customers? Is there a central control panel where you're able to manage all of your employees? Are there terms that do no require a personal guarantor for corporate accounts? My guess is that they still see small businesses as sole properitors for the most part regardless of the actual entity, while corporate would be more for true corporations with a true corporate structure and multiple employees. They do not make this clear though so I was hoping someone here has either card and can shed some light on the actual features as well as terms and conditions. 

 

Any feedback would be greatly appreciated.  

 

Thanks  

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2 REPLIES 2
Anonymous
Not applicable

Re: Corporate Cards Vs Business

I am not sure myself. I carry a corporate Diners Club MC but do not carry a business CC of any kind. The only thing I can think of is that while I am liable for all of my purchases on the card and all the purchases must be company related, I do not benefit from the PIF every month or positive payment history. That makes sense I suppose sense every dime is reimbursed immediately upon receipt submittal. My guess is a business CC carries a personal stake on your CR whereas a corporate card doesn't help or hurt your personal credit score, if you screw up, your company takes it away from you and docks your check, so to speak.
Message 2 of 3
GST2008
Frequent Contributor

Re: Corporate Cards Vs Business

I'm not quite sure if the Amex Corporate cards work this way, but I know my father just signed a corporate card account using Visa cards through M&T.  Basically, there are huge fees for this, but they are waived depedning on how much money you spend with the card issuer.  He is able to limit what certain employees are and are not able to purchase (i.e., a secretary can make purchases at staples for supplies, but is not able to charge $300.00 for a kobi steak dinner).  There is then a master log in that keeps track and spending reports on all the cards and generates a monthly total which must be PIF at the end of each month.  The fees for the accounts are waived for him if he charges over $1,000,000.00 annually.  In addition, there is a tiered cashback rewards system where he gets a certain amount back at the end of the year for spending more than the $1,000,000.00.  I think it goes in increments of $250,000.00 and caps out at some point.  He shopped around with different large banks in the area to arrive at a package that was most beneficially for his needs.  BOA offered different fees, rewards, mimimum spending etc.  The primary difference between this type of account and a small business is the volume and number of cards being used.  He needed at least 100 cards and spends a lot of money doing business.  The issuing bank did an asset check and stated what their fees would be unless he spent x amount of dollars with them.

Current:
TU (5/14/14): 796 (Inquiries; 8/23/13)
EQ (3/23/14): 791 (Inquiries: 8/23/13)
EX (9/24/13): 780 (Inquiries: 7/2/12; 11/20/12; 7/30/13; 8/23/13)

Goals: No new inquiries for 2014, 800 for all CRs by 12/31/14
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