In what could be a portent of things to come, American Express has sent notice to all of its OPEN small business credit card holders that it will no longer process balance transfers or convenience checks. In card holders’ November statements is the notice:

Effective immediately, Balance Transfers and Convenience Checks against OPEN Credit Card accounts will no longer be accepted or available. This includes requests made by phone, online or through the use of Balance Transfer, Convenience Checks and Cash checks.

I called Amex and they confirmed that all small business credit cards are affected, including new accounts.

This is clearly bad news for small business owners. In the current economic climate, businesses can no longer rely on their open lines of credit to be there when needed. Businesses would be well advised to hold adequate cash reserves, have lines of credit from multiple creditors and if necessary, to draw on these lines in advance of when they are required.

This post is from Credit Card Watcher’s Credit Card Deals Blog.

Amex Business Credit Cards No Longer Allow Balance Transfers

We’ve all been there: exiting a department store, juggling gifts as we brave the cold, preparing to step out into a crowded parking lot, only to be greeted by a Salvation Army volunteer. Bell ringing, kettle gleaming, the volunteer smiles warmly. We think about donating a few dollars, but soon realize that we’ve got no cash on hand. It’s a common dilemma in our increasingly cashless society.

Now the Salvation Army has come up with their own solution. Expanding on an idea that’s already in play in Charlotte, NC, and Phoenix, AZ, the charity will be experimenting with cashless kettles in 12 new locations throughout North Texas. The organization says that by adding card-swiping technology to its storefront kettles, it took away the frequent excuse of not having cash on hand. Another benefit of this system is the paper trail it creates. People who make credit card donations get a printed receipt proving that they contributed to the charity. These receipts can be collected and used for tax deduction purposes. 

Of course, anyone from any state can use their credit card to donate to the Salvation Army by giving through the organization’s official web site. You can also set up your own online red kettle to raise money for those in need.

“Citigroup is reneging on a promise it made to tens of millions of credit card customers in good times.” If that lead-in to this New York Times article sounds a bit harsh, that’s because it is.

Citigroup once vowed before Congress that it wouldn’t raise rates until an account expired. That was in the early part of 2007. Now it’s late in 2008, and the credit crisis has caused Citigroup to go back on its promise, earning them a harsh tongue-lashing from critics.

If you’re a Citi cardholder who hasn’t had a rate hike in the past two years, you can bet that one’s coming. Customers will see their interest rates jump 3%, putting some of them over the 20% interest mark. It might be a good time to shop around for a new credit card.

On the other hand, the economic climate is making many companies do things they deem necessary to retain profitability. American Express has hiked rates and laid off thousands of employees, and some financial institutions have folded altogether. Still, Citi is finding very little sympathy.

Representative Carolyn Maloney of New York says that she understands why Citi is doing this, but she doesn’t like it. Says Maloney, “Apparently a deal is only a deal when it doesn’t cost the financial institution too much money.” Ouch.