Small business owners — I commend you on thinking up that million dollar idea, I commend you for following through and getting the appropriate licensing and permitting, and I commend you for giving your customers a quality product. While I am full of commendations, the banks are quick to take back their rewards.
Due to tighter financial restrictions, banks have been cutting programs and adding excess fees left and right. Consumers felt the pinch with hiked outside ATM withdrawal fees — some topping $5 in certain states. Now, small business owners are the next to feel the pinch, as their credit card and debit card rewards programs are slowly, but surely being taken away.
Banks used to issue small business owners debit and credit cards with rewards points. Wells Fargo used to offer one point for every $4 spent, and depending on which retailer you made the purchase from points could total 16 for each $1 spent.
Small business rewards programs generally charge a fee. Wells Fargo charged a $12 annual fee. Small business rewards card work best for the small business owner who doesn’t need the rewards, but would like to use them as a bonus.
Wells Fargo had originally said that it was stopping this program for new customers, but as of August, they have decided to do away with the small business rewards program for their current customers as well. Sun Trust Bank has also stopped their credit card and debit card small business rewards programs, and JP Morgan stopped their program in July of this year.
The economy has had a huge effect on the banks over the past five years. In order for banks to remain competitive after years of bad investment decisions, they have to remove programs that aren’t generating income for them, and implement new programs that generate income. Many consumers are not aware of small business rewards cards, so it will be easy for this one to slip under the radar.
If you’re a small business owner in need of some rewards points, I’m sorry to say, but you will have to go the traditional route and find yourself a good rewards credit card (hopefully with a low interest rate). Try a reward card that gives you cash back on office supplies, or whatever your business specializes in.
