Responding to a marked increase in credit card use by businesses, SECU – Maryland’s largest credit union – is launching a new Business Cash Back Visa® credit card for use on day-to-day business purchases.

“Ease of use, wide acceptance, reduced costs, and security features are all responsible for credit cards and electronic tools such as ACH payments now comprising more than 85% of all payments, as compared to only 42% in 2000,” says Steve Hazan, Director of Business Lending at SECU.

From a cash flow perspective, credit cards should improve the payables side of the business ledger by an average of 30 days as a result of the free float period in the credit card cycle, according to Hazan. “Because other forms of payment are often immediate or in just a few days, any business using a credit card is, in essence granting itself 30-day terms interest free,” he explains.

Hazan notes that many credit card programs now offer rewards or cash back on purchases. SECU’s new Business Cash Back Visa® card, for example, offers unlimited cash back rewards, including 3% back on gas and office supplies, 2% back on restaurants, and 1% back on all other purchases, plus 24/7 fraud monitoring, zero liability protection, and low variable rates.

The cards also have no balance transfer fee, no foreign transaction fee, no cash advance fee, and no annual fee.

Hazan cautions, however, that companies which elect to use credit cards for business purchases must use the card program properly. “This means paying off in full each month so as not to incur interest charges,” he says.

For more information on how your company can benefit from using cash back credit cards for business purchases, visit one of SECU’s 22 Maryland branches or go to www.secumd.org.

ABOUT SECU

Founded in Baltimore in 1951, SECU is Maryland’s largest credit union. SECU is ranked among the top 50 credit unions for total assets in the U.S, which total $3.56 billion as of July 2017. Headquartered in Linthicum, MD, SECU has 22 branches in Maryland and thousands of free ATMs. For more information about SECU, visit www.secumd.org.