A guide to cash back business credit cards
Quick insights
- Cash back business credit cards can help you earn rewards on routine business expenses, such as office supplies, travel and dining.
- Rewards earned through cash back cards can typically be redeemed for statement credits, cash back or travel.
- Considering factors like a card's rewards rate, fees, benefits and your business's spending habits may help you determine which cash back business card is right for you.
Businesses, both big and small, have expenses. From replenishing the pen supply to booking a flight to meet with a client, businesses need to pay for all sorts of things. And businesses that have cash back credit cards may find themselves earning rewards on routine purchases.
A cash back business credit card rewards cardmembers with a percentage of their purchases typically in the form of cash back. Read on to learn how cash back credit cards work, some common features and how to evaluate if a cash back card is right for your business.
Features of cash back business credit cards
There are many reasons to use a credit card designed for businesses—especially those that prioritize earning rewards. These cards give cardmembers the potential to earn rewards while also providing perks specific to businesses.
Here are some key features to know:
How rewards are earned
Cash back credit cards allow the cardmember to earn a small percentage of the purchase amount as rewards on all eligible purchases. The rate at which you earn cash back rewards varies depending on the card issuer and the type of purchase you make. Rewards rates are typically anywhere from 1.5% to 5%, depending on the card, the purchase category or the amount of the purchase.
Purchases that earn rewards
Many cash back business credit cards earn rewards on all purchases. However, some cards may offer higher rewards rates on certain types of purchases.
For example, the Chase Ink Business Cash® credit card offers 5% cash back on select business categories (like office supply stores, internet, cable and phone services), 2% at gas stations and restaurants and 1% on all other purchases. Note that there is a cap to the amount of cash back you can earn from each category—refer to your cardmember benefits for details.
Redemption options
Once you've earned enough rewards, you can typically redeem your credit card rewards for cash back, statement credits or other rewards such as gift cards or travel points. Some cash back credit cards may let you transfer your rewards to a linked checking or savings account.
Business features
Cash back business credit cards can also be a convenient way to manage your business expenses, as they often come with features such as itemized statements and online expense tracking. Some cards also offer employee credit cards at no cost, which may provide an easier way to track and manage employee spending.
Evaluating the right cash back card for your business
With so many cash back business credit cards on the market, you may not know which is best for your business. Here are a few factors you may want to consider:
- Fees: Some cash back business cards have low annual fees, as well as low or no foreign transaction fees.
- Interest rates: You may want to compare interest rates as well as understand any potential late fees or penalties.
- Rewards rate: Considering the card's rewards rate and spending categories can help you maximize reward earning potential.
Comparing different cash back credit card offers
Once you've narrowed down your options, it's time to compare different cash back credit card offers. Here are a few things to consider:
- Rewards rate: Look for a card with a high rewards rate on the types of purchases your business makes most often.
- Welcome bonus offers: Many cash back business credit cards offer a welcome bonus offer for new cardmembers, which can be a way to earn rewards quickly.
- Introductory APR: Considering a card with a low introductory APR could help you save money on interest charges for a limited time.
In summary
Cash back business credit cards can be a great tool for businesses of all sizes. You can earn rewards on business expenses and redeem them for cash back, statement credits, gift cards or travel.
By understanding the features, benefits and potential drawbacks of these cards, you can make an informed decision about whether they’re right for your business. It can be helpful to read the fine print and consider your business's spending habits when choosing a credit card that aligns with your financial goals.
