Posted by William Charles on May 29, 2019
Credit Cards

Published on May 29th, 2019 | by William Charles

51

Barclays Requesting Business Documents After Approving Business Cards

A number of readers have reached out to us to let us know that they applied for a Barclays business credit card, were approved, received & activated the card only to try to use it and be informed that the card has been blocked and can’t be used. After calling Barclays helpline they were told that a security block had been put on the card until they could prove that they own a legitimate business. These people applied as a sole proprietor using an SSN and Barclays is now saying that this does not qualify and the card will be unusable until they can prove their business.

I imagine a lot of readers have applied for Barclays recently with the increased business card bonuses available. At this stage it’s not entirely clear how common this actually is, so please share your experiences in the comments below. I do find it weird that Barclays is requesting this documentation after approval, if it’s necessary it would make sense to request it during the application process. I’m also not sure how they can claim that as sole proprietor isn’t a legitimate business but I’m not a legal expert.



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FM
FM

No issues on my end as a sole prop “business”. Applied for the aviator card with the 75k bonus on 5/8. Was auto approved and received/activated/used card without any issues. First charge was for my mortgage through plastiq and had no issues with the charge going through.

Lion
Lion

What does Plastiq code as on the Aviator? Seems like a steep hit to pay for AA miles.

dk
dk

Well they have the MC promotion. But 75k aa for 1000 in spend? So at $25 fees from plastiq at full rate +$95 annual fee, we are looking at ~$120 for a tround trip to Europe + a domestic fare? If thats not worth it I dont know what is.

Richard
Richard

super worth it when u need to hit minimum spend. wouldnt say its worth it after hitting minimum spending tho…..

AWLL
AWLL

seconded, no docs required post-approval, using the card fine.

bizman
bizman

Happened to me

raekwon
raekwon

First step I’d take would be to register w/ the IRS (as a sole prop), get an EIN, and send Barclays the documentation for that.

Duke I.
Duke I.

Thank you for this information! It took less than 5 minutes for me to get and print out the EIN and it was free.

Matt
Matt

Not worth having to report for your business taxes every single year imo (personally i like not paying tax on my stubhub income…)…don’t you have to do that?

lenin1991
lenin1991

Creating an EIN itself does not create a tax filing requirement.

You are required to pay taxes on your income either way.

raekwon
raekwon

I’m gonna bet that if you make over $600/yr on StubHub, they’ll require you to file a 1099.

Celia
Celia

I have had an EIN for years with my sole proprietorship, a legitimate business, and still file personal taxes only. The only exception is a schedule C. Only income you receive a 1099 for goes on that form.

Snorlax
Snorlax

No… all your business income goes on your Schedule C, even if you weren’t issued a 1099.

Abey

This happened to my spouse on her US Bank Club Carlson (Radison Rewards) Business card.

Dee
Dee

Bank Of America asked me for proof of business and for financial reports, etc. I have a small Sole Prop. business with minimal earnings. I have an EIN to help with proof for things like this, but decided it wasn’t worth fooling with financial documentation for various reasons. (Also my personal job income decreased after application. So I might not be able to get approved anyways.)

elegua
elegua

I applied for the Barclays AA Biz card last year (Jan-Feb) and the only way to get approved was providing my Business State Registration, after provided this i was approved, it took 3 weeks the entire process, never heard of this but the bonus was good so i finished the process, i don’t think i’ll do this again.

Max B
Max B

For anyone who has to send in papers, please let us know if a simple business license was satisfactory for a sole proprietorship.

Levi
Levi

NO issues on JB Biz, sole prop , first biz card w/ Barclays

Aloha808
Aloha808

Same here

Kevin
Kevin

As with everything else, things get abused and it just makes it harder for legitimate customers. If you have a real business, there’s no issue providing the documentation. If you have a “business” you will probably find things get harder with banks as crackdowns continue.

scripta
scripta

There is an issue, because not all real businesses have “documentation.” A sole proprietor making and selling hand made recycled plastic art is a real business that doesn’t require any permits, licenses, registrations, or any other government documentation. Will Barclays accept Schedule C? What if the business is brand new and hasn’t filed a return yet?

Dubya
Dubya

Well that would depend on your local laws. My city requires anyone selling anything to have a license. Even home made art. So your hypothetical business would have documentation. Wether Barclays would accept that I don’t know. But from Barclays perspective your hypothetical business doesn’t need a business credit card. A business credit card is for business expenses. If you have business expenses you have documentation. At least that’s the way a bank sees it.

scripta
scripta

I agree that a biz CC is for biz expenses, but having biz expenses doesn’t mean you have any documentation other than receipts. My hypothetical business needs to buy supplies and may have a workshop for making the product and an office for keeping track of all business related activity. You don’t seem to understand what legally constitutes a business.

Sure, it’s not a problem if your locality requires something. My city doesn’t require anything from an “occasional” eBay seller. My recycled plastic art could produce just occasional sales, but I may have expenses and revenue in the thousands, you can’t know.

Dubya
Dubya

Clearly I don’t. But you don’t seem to understand that Barclays doesn’t care. And they certainly don’t care for excuses or shenanigans.

John
John

No problems with AA or JetBlue biz cards in the last couple months.

Matt
Matt

Looks like I’m locked. Tried to make a purchase on Raise, declined. Amazon declined as well.
Applied and instantly approved 5/8. Activated a week later. Been sitting around since but I was going to eventually use it. Applied as a sole prop, 1 year in “business” and 500 yearly revenue.

JT
JT

They are obviously pulling this bunk sole prop. crap to stop perceived bleeding, but one should be ready to go w/ documents regardless. Should be easy to get them what they want.

Charlie
Charlie

Most cities and counties require you to have a business license if you operate a business within their borders. The license is just as necessary for sole proprietors as it is for LLCs. Just furnish a copy of that license to Barclays. Of course, if your “business” consists of selling an item or two on eBay every few weeks, then you might not have bothered to get the business license, and in that case, you will have a problem.

Staradmiral
Staradmiral

So just give them a copy of your ebay invoice? no matter how small it is, it’s still a business

Charlie
Charlie

An eBay invoice without a business license probably indicates a black market business. Most jurisdictions impose fines if they learn that you are operating a business without a business license.

Peter
Peter

Just activated my wife’s Barclay’s AA business card last night. She bought a single cup of coffee this morning with it and went through. Will report back on whether further requirement gets imposed…

ERoach
ERoach

Bummer! I applied on 5/8 and was approved (sole prop, SSN). About ten days later, I made a couple of purchases and applied for (later received) an employee card. So I believe all is well, except for the fact that I hate their website and I have no idea where or if my rewards will show up 🙂

Sorry to everyone who’s getting the runaround.

motty
motty

I applied for Barclays AA Biz on 3/13/2019. Approved on 3/17/2019 after I called them. They needed to verify my identify if I remember correctly. They haven’t reached out asking for biz docs. I already met my MSR and got my points, so if they do, should I even bother responding?

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