Business card interest rates continue to spike

While the 2009 CARD Act implemented new protections for consumer credit cards, it failed to extend the same protections to business cards. As a result, small business owners are facing skyrocketing interest rates.

According to a study by BillShrink, a personalized search engine, the credit card interest rate for business cards has increased, in some cases, more than 30 percent since the beginning of 2010.

"We predicted earlier this year that small businesses would be subject to rate increases as the banks try to make up for lost consumer revenue resulting from the CARD Act," said Schwark Satyavolu, CEO of BillShrink. "Since small businesses aren’t protected, they appear to be an easier target for card rate hikes."

However, despite poor economic conditions, the study found that small businesses are continuing to keep their debt in check by paying off charges every month. Only 27 percent of small businesses carry a balance on their cards.

Senator Charles Schumer of New York has asked the Federal Reserve to reexamine these credit card issuers practices, claiming they may be predatory and beginning to target consumers.