We issue personal debit cards to customers after pulling a credit report. We issue an adverse action when we deny a debit card.
We are not in real time for debit card transactions. There is usually a 2 day delay before posting.
We want to begin issuing business debit cards and want to begin pulling credit reports on sole proprietors. The highest limit we would offer on a business debit card is $10,000. Am I correct to assume that it is o.k. to issue an adverse action notice when a debit card is denied for a business applicant?

The Adverse Action Notice is required for loans. If this isn't a loan or line of credit product, the AAN isn't needed.

The FCRA notice is what you need when a credit report is involved. But the FCRA notice is a consumer reg and not a business.

You may search on "business debit card" to see prior posts. It is important that you and the business understand who has liability for unauthorized transactions.