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Small-business credit cardholders in some countries are getting access to better discounts and rewards, industry observers say.
"Europe and the United Kingdom are starting to go in the same direction as the United States in terms of offering more customized rewards programs for small businesses," says Michael Carbone, global practice leader for commercial consulting for MasterCard Advisors. "The evidence is mounting that issuers see positive results from card programs when they tailor cards to suit particular audiences and industries."
In the UK, small-business card programs are offering various combinations of rewards, quarterly and annual spend analyses, and discounts on business-related expenditures.
American Express Co. in 2006 launched the Nectar for Business Credit Card in the UK. The card earns points redeemable for office equipment, for entertaining clients at various events and for making purchases at upscale retail outlets. AmEx executives say the card is succeeding in reaching the company's goals but would not reveal details about card spending or consumer participation.
Barclays Bank plc's Barclaycard Business Visa cards for small business offers UK business owners the choice of a credit or a charge card. Each provides discounts on business-related services but does not support a rewards program. And UK retailer Tesco plc offers a MasterCard small-business credit card that provides rewards and discounts on fuel.
To enrich the options for small-business cardholders, Visa Inc. in May announced 130 discounts available to Visa small-business cardholders from merchants in various markets globally. Discounts are offered in dozens of countries and in 17 merchant categories, including car rental, computers, entertainment and telecommunications, and they are communicated in 11 different languages. CP
