A small business owner’s guide to credit card rewards
Quick insights
- Some business credit cards allow cardmembers to earn rewards on purchases.
- Depending on the specific card’s reward structure, cardmembers may be able to redeem rewards for cash back, statement credits, travel and more.
- Your preferred business credit card may depend on factors like rewards earning rate, redemption options and additional cardmember benefits.
Earning rewards may be an appealing aspect of using a business credit card, depending on your spending habits and lifestyle. Points can be earned and redeemed in a variety of ways; the particulars depend on the specific card.
For small business owners, business credit card rewards can be a useful way to earn rewards to reinvest into their business. Read on to learn about business credit card rewards, how they work and how they might benefit your business.
Some reasons to consider business rewards credit cards
A card’s earning structure and redemption options may be key selling points for the credit card. Here are some things to consider about these aspects of a card’s rewards program before applying for a business credit card:
Rewards structure
Business credit cards may earn rewards on purchases at different rates. This is similar to many other rewards credit cards. Usually, how many points per dollar you can earn may vary based on the category of purchase. With the Ink Business Preferred® Credit Card, for instance, a cardmember may earn 3 points per $1 on the first $150,000 spent in combined purchases in the following categories each account anniversary year:
- Shipping purchases
- Advertising purchases made with social media sites and search engines
- Internet, cable and phone services
- Travel
Earning rewards at accelerated rates isn't the only notable way to earn rewards with business credit cards. Business credit cards may also have welcome bonus offers, which allow eligible new cardmembers to earn a set number of points if they reach a spending threshold within the first few months of account opening (details vary by card).
Reward redemption options
Some business credit card rewards can be redeemed for cash back, statement credits, gift cards, flights, hotel stays and more. Your preferred credit card may depend on whether its reward redemption options match your business’s needs.
Some business credit card rewards may also be transferable to airline and hotel loyalty programs. This may be valuable if you're looking to enhance your rewards with a specific hotel or airline loyalty program.
Considerations for choosing a business rewards credit card
Choosing the right credit card may depend on your business needs, goals and spending habits. Here are some aspects of a business card's rewards program you might consider before applying:
Does the type of rewards matter to you?
The type of rewards that a card earns may be worth considering when comparing business credit cards. While many cards accumulate rewards as points, some business travel credit cards earn miles instead. Additionally, depending on the credit card, the options for redeeming rewards may be limited to flights.
Business owners who prefer more flexibility when it comes to reward redemption may want to consider cards that earn points, which can typically be redeemed for different types of rewards.
Could you earn a welcome bonus offer?
Sometimes called a new cardmember bonus, a welcome bonus offer may be a valuable offering for your next business credit card. If a card has an active welcome bonus offer, new cardmembers must spend a certain amount on purchases within a period of time to qualify for the offer.
If requirements are met, the cardmember may receive a set amount of additional rewards. If you're looking to qualify for a welcome bonus offer, you may want to determine how easily your spending patterns could meet the spending requirement.
Do you want to transfer your points to other programs?
Earning transferrable rewards points can be very useful for a business credit card. Transferable points can provide added flexibility, as they may be used in airline and hotel loyalty programs, not just the business card's rewards program.
What are the card's additional benefits?
You may find that cards with similar rewards programs differ in terms of additional cardmember benefits. These vary by card and may include travel credits, airline lounge access and purchase protection.
Some business credit cards are also affiliated with airlines and hotels. These companies may partner with your credit card issuer to provide specific perks and benefits. If you tend to fly for business, it may be worthwhile to consider applying for a business credit card that partners with a particular airline.
Managing credit card rewards earned by employees
Many business credit card accounts allow the primary cardmember to issue individual employee cards. Rewards are usually earned for spending on all the cards connected to the account. However, employee cardmembers may not have access to all the card’s additional benefits.
In general, the primary cardmember of the account chooses how to redeem accumulated rewards. Depending on the card issuer, the primary cardmember can also manage individual employee cards by setting spending limits.
In summary
Your preferred business credit card may depend on your business’s specific goals and spending habits. It may be helpful to review a business credit card’s rewards program before applying. Factors to consider may include how the card earns rewards and available redemption options.
Ready to apply? You can compare business credit card options to determine which option meets your specific business needs.
