Choosing a cash back business credit card
Quick insights
- A cash back business credit card lets cardmembers earn a percentage of eligible purchases back as rewards.
- Choosing the right card may depend on your business expenses and preferred rewards structure.
- You may be able to get more from rewards by aligning your card choice with your spending habits.
Running a business often comes with a variety of expenses, from office supplies to meals and travel. A business credit card that enables you to earn cash back can help you offset some of your operating costs over time. Here we'll explore how to choose the right card for your company's needs.
How does a cash back business credit card work?
A cash back business credit card lets you earn a percentage of your eligible purchases back as a reward. This reward could be issued as a statement credit, which reduces your account balance, or as a direct deposit into an eligible bank account.
Earning cash back can be a helpful way to offset regular business costs. Whether you're purchasing software, paying for internet services or covering travel expenses, these rewards can add up over time. By strategically using a rewards card for your standard operations, you could potentially improve your company's bottom line.
Things you might consider when choosing a cash back business card
When evaluating your options, it may be helpful to look at a few key features. Every business is different, so finding a card that matches your specific needs can be an important step.
Cash back structures
Cards may offer either a flat-rate or a tiered rewards structure. A flat-rate card earns the same percentage of cash back on all eligible purchases. This streamlined approach may be suited for businesses with varied expenses. For example, the Ink Business Unlimited® Credit Card earns a flat 1.5% cash back on every purchase.
A tiered card offers higher cash back percentages in specific categories. One example of a tiered business credit card is the Ink Business Cash® Credit Card.
Annual fees
An annual fee is a yearly charge assessed by the card issuer for the benefits of the card. Some cash back cards charge an annual fee, while others do not. You may want to calculate your estimated yearly spending to see if the rewards you could earn would outweigh the cost of an annual fee.
Welcome bonuses and introductory offers
Many credit card issuers offer a new cardmember bonus, which is a lump sum of cash back you can earn after spending a certain amount within the first few months of account opening. This can provide a helpful initial return, but you might consider ensuring the spending requirement aligns with your normal business budget. Additionally, some cash back business cards may offer introductory Annual Percentage Rate (APR) offers, which could potentially help you save on interest charges.
Additional business card benefits
Beyond cash back, you might consider other card features:
- Employee cards: Many issuers allow you to request cards for your employees. Purchases made on these cards typically earn rewards for the primary account at the same rate. Note that some cardmember benefits may only be available to the primary cardmember.
- Expense tracking: Some cards offer digital tools to help you monitor spending and categorize purchases.
- Protection benefits: Certain cards may include purchase protection or extended warranty coverage on eligible items.
Those with an existing Chase business checking account or business credit card can use Chase Business Credit Journey™ to monitor their business credit and view scores without impacting their credit.
How to make the most of your business cash back rewards
To make the most of your business card cash back, you may want to consider aligning your card choice with your company's highest spending categories. If you spend heavily on shipping and advertising, a tiered card that rewards those purchases could be a good fit. As you explore your options, Chase offers various cash back business cards for a range of needs, such as the Ink Business Unlimited® Credit Card, Ink Business Cash® Credit Card and Ink Business Premier® Credit Card.
It can also be helpful to pay your balance in full each month. Carrying a balance means you'll incur interest charges based on your card's APR, which can offset the value of any cash back you earn.
Additionally, keeping your business and personal expenses separate can help simplify your bookkeeping and help track your business rewards.
In conclusion
Your business works hard. The right cash back card can help that hard work go further. Strategically using a business credit card with cash back could provide a helpful return on your regular spending. Selecting the right card depends on your spending habits and financial goals. With a little research, you can choose a cash back card that works as hard as you do to support your business.
