Business credit cards that offer cash back
Quick insights
- Cash back credit cards allow business owners to earn rewards on eligible business-related purchases.
- Some credit cards may also offer accelerated earning opportunities for select categories, like office supplies, travel or dining.
- Business credit cards often provide tools and features for tracking expenses and providing insights into spending patterns.Â
Using and maximizing a cash back credit card for your business can be a helpful way to create additional value. After all, you may get a percentage of your spending back in the form of cash or statement credit. Some business owners also find that the simplicity of a cash back business credit card is another reason for using one. For some busy entrepreneurs, not having to keep track of points or redemption options can be appealing.
In this article, we’ll share several Chase business credit cards that offer cash back, some tips for optimizing those rewards and additional information about how the IRS views credit card rewards.
Breaking down Chase business cash back credit cards
Below are cash back card options in the Chase Ink suite of business credit cards. Each of these cards provide employee cards at no additional cost and account alerts to monitor spending, among other benefits.
Chase Ink Business Premier®
The Chase Ink Business Premier credit card provides cardmembers options to earn additional cash back on large purchases in addition to a flat cash back rate on other business-related purchases. Businesses that meeting a higher spending threshold may be able to maximize cash back rewards opportunities. Features include:
- Earn a welcome bonus offer after you spend a minimum amount on purchases within the first 3 months of opening the card
- Earn 2.5% cash back on large business purchases of $5,000 or more
- Earn unlimited 2% cash back on all other business purchases
Note that this card has an annual fee.
Chase Ink Business Unlimited®
With an easy-to-manage flat rate cash back on purchases, the Chase Ink Business Unlimited® credit card may be a good option for small business owners who would prefer a straightforward rewards program. Features include:
- Earn a welcome bonus offer after you spend a minimum amount on purchases within the first 3 months of opening the card
- Earn unlimited 1.5% cash back on every purchase made for your business
- Low intro APR
Chase Ink Business Cash®
For business owners who make frequent purchases at office supply stores and have ongoing internet and phone service expenses, the Chase Ink Business Cash credit card may be a great choice. The credit card allows you to earn rewards in the following ways:
- Earn a welcome bonus offer after you spend a minimum amount on purchases within the first 3 months of opening the card
- Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
- Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year
- Earn 1% cash back on all other purchases
How to use business credit cards to get cash
You might want to be strategic with your business spending by using a cash back business credit card to make your business purchases in eligible categories. As a result, this spending may earn you a reward in the form of cash back. The cash back can be reinvested in the business or go toward reducing the credit card balance.
Is cash back on a business credit card taxable?
In most cases, credit card rewards are not considered taxable income by the IRS. Most rewards are viewed as rebates, but redeemed rewards may have tax implications. Generally speaking, cash back that you redeem as a statement credit is not considered income.
Tax laws and regulations can change over time. Review the terms and conditions of the specific credit card you're interested in to understand the rewards it offers and how they can be redeemed. You can consult a tax professional to determine the specific tax treatment of credit card rewards in your situation.
In summary
A cash back credit card can be an excellent tool for maximizing rewards on business expenses. By paying off the balance completely by the due date each month and using your card in the specified spending categories, you can potentially avoid interest charges while earning cash back rewards.
Note that your spending habits, including your typical spending categories, can influence how much cash back you earn. Do your research to identify which card best matches the spending habits of your business and allows you to redeem them in a way that works for you.
