According to some experts, a set of regulations for credit cards that went into effect in 2010 should increase protections for small business owners.
In a recent article for American Banker, Odysseas Papadimitriou, founder and chief executive of Evolution Finance, writes that while Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 has helped end unfair practices for consumers, the same protections have not been made for entrepreneurs. He said that while non-business cardholders were protected from tactics such as “applying penalty annual percentage rates to a person’s credit card” after missing a payment for a different loan. In addition, small business owners, 80 percent of whom have credit cards, do not have to be given notice about an upcoming change to terms of their account.
The writer called on politicians in Washington to take action but remained skeptical.
“So why hasn’t Congress or the Fed taken action yet? I mean, other than that it takes forever to get anything done in Washington these days,” he wrote.
The CARD Act also included provisions that affect how young people are targeted by credit card companies. Under these provisions, companies are not allowed to advertise the merchant services-related products on college campuses.Back To Blog