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Message From Chase re: Business Credit Card

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Received this message from Chase. Anyone know what consumer protections they are referring to? Any ramifications to using for personal purposes?

Dear Chase Online Customer: Thank you for using your Chase business credit card. Please continue to use it for business purchases, but remember that it's not intended for personal use.The regulations that cover business cards do not provide the level of protection given to consumer cards. We want you to receive the consumer protections you are entitled to. So, please use a consumer credit card for purchases for personal, family or household use.If you need a consumer credit card, please call us. We can help you choose the Chase consumer credit card with the features and benefits that fit your lifestyle best.If you have questions, please call us anytime at the number on the back of your card. Sincerely, Card Services

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I have a 10 year old United Biz card that received the same notice. I recently charged a single item of $10K on it (thi... (more)

UtahDealSeeker (Apr. 25, 2017 @ 5:33p) |

I got this message as well, and TBH I haven't been using the card "exclusively" for business use. But coincidentally, I... (more)

larryc (Apr. 30, 2017 @ 3:50p) |

technically true is the best kind of true.

defjukie (May. 01, 2017 @ 7:58a) |

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rated:
CARD Act of 2009 offers more protections for personal cards, which aren't extended to business cards. Examples
With personal credit cards, you get a 21-day window for payments. With business credit cards, that doesnít exist. Your due date can change month to month.
With personal credit cards, you get 45 days notice if your interest rate is increasing. With business credit cards, your rates could go up overnight.
Additionally, payments might be applied differently to business credit cards. While payments are directed to the highest APR balance for personal credit cards, payments made toward balances on business credit cards can be applied toward the balance with the lowest APR. This varies by issuer.
There are also no limits when it comes to fees for business credit cards. For example, late fees canít exceed $25 on personal credit cards. Thatís not true for business credit cards.
If you want more info, read CARD Act of 2009.

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Also protections like CDW may not apply if a car is rented for personal puposes on a business credit card, for example. Read your T&C's

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There are also billing dispute laws that personal cards are subject to, but not business cards. However, I think many issuers treat them the same and give similar benefits to business card holders (but not corporate card holders fyi).

There are other benefits that Chase may give to personal cards that are not available to the equivalent card as a business card. But this would be dependent on the actual terms and there's no rule, standard, guideline, etc. governing whether these are the same.

Also, there's likely a clause in the terms that says you can't use the business card for personal purposes. Not sure how much you are worried about this or whether Chase cares/why they would, but thought it was worth pointing out. However, if you think you may have charged something that triggered this note, perhaps they're watching your account for some reason, so it may be a good idea to play it safe and not get blacklisted. Without knowing the details of what you're doing this is a call you have to make on your own.

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marginoferror said:   There are also billing dispute laws that personal cards are subject to, but not business cards. However, I think many issuers treat them the same and give similar benefits to business card holders (but not corporate card holders fyi).



† Technicaly, this is true, banks can handle disputes differently (with consumer protection better on personal cards). While I've never had to escalate anything with Chase, my first round of responses on disputes have been the same for Chase personal and business cards.

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imbatman said:   
marginoferror said:   There are also billing dispute laws that personal cards are subject to, but not business cards. However, I think many issuers treat them the same and give similar benefits to business card holders (but not corporate card holders fyi).



† Technicaly, this is true, banks can handle disputes differently (with consumer protection better on personal cards). While I've never had to escalate anything with Chase,†my first round of responses on disputes have been the same for Chase†personal and business cards.

††
The Chase website will not let me initiate a dispute on my business cards.† I had to send an SM to initiate the process.† It went fairly smoothly, but was not as transparent for me as it is on a personal card.

That said, I think most major banks don't leave a customer in the lurch just because it's a business card .... unless you start 'abusing' the process and filing several disputes per year.

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I got this message from Chase too. I just posted about it but now I see your post, so I'm glad I'm not the only one. I thought they were singling me out for a number of reasons.

1. I have a Chase Ink Business card grandfathered to the old benefits of 3% back on Gas, Restaurants, Home Improvement stores, and Office Supply Stores
2. My business name, Vandelay Industries, is obviously fake
3. I use it for every restaurant purchase, including the random Late-Night milkshake run that I did last night that I thought precipitated this email

Since someone else also got this message, I venture to guess that number 3 probably has nothing to do with it. But what about number 1?

For anyone who has received this message, what kind of Chase business card do you have?

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I'm willing to bet that these types of notices are to keep the CFPB off them. So that Chase can say something like this:

We proactively reached out to our small business cardholders who had charge patterns indicating that they may be using small business cards for personal purchases. We can't be held responsible for how the cardholders use their cards because we have no way of knowing if the charges are personal or business.

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I think the message was sent to everyone because I hardly use that card and I also got the message. Current activity was two restaurant visits and a gas station visit..well within "normal" business range.

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So does it seem the message went just to Ink card holders who have the grandfathered rewards program?

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Yes, received message for INK 5% card.

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No message here. Ink plus 5%.†

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Nothing here, Ink 5%. Mix of about 20% legit business expenses and 80% 5x churn.

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JiggleTheHandle said:   Yes, received message for INK 5% card.
† So then it's not just the grandfathered rewards. The grandfathered program is†3% on Gas, Restaurants, Home Improvement and Office Supply Stores. 1% on everything else.

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meade18 said:   I got this message from Chase†too. I just posted about it but now I see your post, so I'm glad I'm not the only one. I thought they were singling me out for a number of reasons.

1. I have a Chase†Ink Business card grandfathered to the old benefits of 3% back on Gas, Restaurants, Home Improvement stores, and Office Supply Stores
2. My business name, Vandelay Industries, is obviously fake
3. I use it for every restaurant purchase, including the random Late-Night milkshake run that I did last night that I thought precipitated this email

Since someone else also got this message, I venture to guess that number 3 probably has nothing to do with it. But what about number 1?

For anyone who has received this message, what kind of Chase†business card do you have?

† It's just generic marketing, trying to sell more new accounts.† No different than getting a pre-approval offer in the mail, except this email campaign was cheaper for Chase.

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Legalities aside, I don't see why the credit card issuers even care. The main benefit (that I see) for a business card is to make it easier to separate purchases for business deductions from personal spending.

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http://www.doctorofcredit.com/chase-cracking-using-business-card...

It seems like, according to that post and the comments, that a lot of people got this message. I'm no longer worried. My new opinion is that it was either some sort of CYA message, or like Glitch99 says above, generic marketing.

I fully expect at some point to get the message that my card benefits are changing like we all got when Citi Forward became useless. I'm still along for the ride until then, however!

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I got the message too and I don't even have a Chase business card currently.

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Grandfathered Ink card holder here. No message.

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That grandfathered account (mine was an old bellsouth card) is truly a very versatile backup card.

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I have a 10 year old United Biz card that received the same notice. I recently charged a single item of $10K on it (this came after almost 5-6 years of $10 usage per month).

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I got this message as well, and TBH I haven't been using the card "exclusively" for business use. But coincidentally, I had to call in about a double charge, and before the agent would take my information, she asked:
- What is your business? My Answer: I'm a sole proprietor. (hard to argue with; I indeed have done consulting in the past)
- What does your business do? My answer: Consulting
- In what area? My Answer: Technology. (All technically true, at least in the past)

rated:
larryc said:   I got this message as well, and TBH I haven't been using the card "exclusively" for business use. But coincidentally, I had to call in about a double charge, and before the agent would take my information, she asked:
- What is your business? My Answer: I'm a sole proprietor. (hard to argue with; I indeed have done consulting in the past)
- What does your business do? My answer: Consulting
- In what area? My Answer: Technology. (All technically true, at least in the past)

††
technically true is the best kind of true.

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