Small business centers tend to mirror retail, where the debit cards have been very successful. Money drawn immediately Just as with consumer debit cards, business debit cards are linked directly to a checking account. Use one to pay for a purchase and the money is immediately deducted from the account. That means the user misses out on the 30-day grace period credit cards usually offer. But experts say the trade-off can be worthwhile.
Debit cards are an added convenience.
There are no checks to cut and you get good record-keeping. That includes discounts geared to small-business needs for everything from car rentals and computer purchases to reduced rates at copying centers and discounts on shipping costs. Visa began its small business debit card program in January 1998. The incentive is huge. A MasterCard survey shows small businesses make 89 percent of their total company purchases with cash or checks.