A purchasing card is essentially a type of business credit card which enables goods and services to be purchased without the use of a conventional purchasing process at a retailer's trade show booth. In the UK, purchasing cards usually are also known as "proximals", or"pre-paid". This means that purchases made via the credit card will have to be cleared at the time of purchase. The purchase process can either be carried out online or offline, depending on the type of merchant account used. Purchasing cards often include a statement of goods carried, a list of products available, and a list of merchants and their contact information.
There are numerous benefits associated with a purchasing card, but there are also several restrictions which should be considered when using them for business purposes. For example, a small business credit card which includes a rewards program may have a lower limit on the number of reward points which can be accumulated per year. Furthermore, a card with a cashback program is only available to those who use the credit card for transactions in specified outlets, and the reward points are not transferable between accounts.
There are many things which one needs to consider when comparing purchasing card offers from different retailers and issuing banks. First, it is essential to determine the frequency with which the card has to be used and how many reward points can be earned. Other considerations include the annual percentage rate (APR), annual service fee, grace period, fee per item, minimum amount, and other costs and fees. It is also necessary to evaluate how the APRs of different programs from different issuers differ, and whether these APRs are subject to change. Finally, small businesses must also evaluate the extent to which the purchase APR will be reduced once the cardholder reaches a certain level of his or her credit line.