September 28, 2009
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News: JPMorgan Launches Business CC
After Advanta, a major small business credit card company, closed all its accounts to future spending, many small business owners have been searching for a lender to replace their account. Small business credit cards have not come in great supply and the market has been mostly dominated by American Express. For customers who do not qualify for an American Express account, Advanta's exit has left a void in the market that offers a rewarding economic opportunity for banks. JPMorgan Chase & Co., is about to capitalize on that opportunity. The nation's second largest credit card company has launched its new small business card program in a strategic move to sweep up a chunk of the market.
JPMorgan Chase is now offering the Ink Bold charge card which requires businesses pay the balance in full each month. The Ink Bold card is the first of its kind being offered from JPMorgan, Visa, or MasterCard. Richard Quigley, President of Chase's Business Card Division, said small business owners will be driving a more stable economy which we have already begun to see. According to Quigley, small business spending accounts for nearly $5 trillion and Chase is launching three new small business credit cards that will enable business owners to earn rewards while paying expenses. These new credit cards offer higher credit limits with reward and cash back programs.
Although the recession appears to nearing the end, JPMorgan has projected the bank's card business will not see a profit for over a year. They have also estimated that the new legislation will cut into earnings by over $500 million a year. The new Ink Bold charge card has no annual fee and a 0% introductory rate for the first six months. It also offers 0% interest transfer rate for the first six months along with access to Ultimate Rewards. The three credit cards also offer a 0% introductory rate and no annual fee along with rewards. JPMorgan is the nation's largest issuer of Visa cards and the second largest MasterCard issuer.