Business credit cards with rewards offer benefits to small business owners for their business-related spending. Just like with personal credit cards, there are different types of business rewards credit cards geared toward different spending styles.
While some cards offer cash back for businesses, others center on travel rewards. There are also co-branded rewards credit cards tied to loyalty program memberships that help cardholders earn hotel points or airline miles for business use. Some cards have no annual fee, while higher-tier cards may offer a more lucrative rewards program and extra benefits in exchange for an annual fee.
When exploring business credit cards, you may want to consider putting together a rewards program comparison and an annual fee vs. rewards value analysis. This information can help you find which card best aligns with your business spending. There are other up sides to business rewards cards to research, such as signup bonus offers, rewards points transfer options, and bonus points for certain credit card reward categories.
Learn more about how business credit cards with rewards work, the different reward types, and how maximizing reward points can help your bottom line.
Business credit cards with rewards
Anyone who is a business owner, including independent contractors or freelancers, can apply for a business credit card with rewards. Business credit cards have two primary features for cardholders: expense tracking and rewards potential.
Business credit cards let you keep business spending separate from personal spending, which is important when it comes to bookkeeping and tax filing. Many card issuers also offer account management tools that help you keep track of expenses, including setting spending limits on employee cards and the ability to download reports directly into accounting software.
As for rewards, business credit cards can help offset business costs by letting cardholders earn cash back or points they can redeem in a number of ways. In addition, some business credit cards with rewards have value-added perks like no foreign transaction fees, consumer protections, or discounts and fee credits with specific business service providers.
Points, travel, cash: business credit card reward types
When evaluating business rewards credit cards, the first step is to understand how rewards work. In general, every time you use the card to make eligible purchases, you will earn rewards. Those rewards accumulate in your account until you redeem them. Specific rewards program details vary widely by card and card issuer.
Here are some ways that business credit card rewards programs can differ.
Rewards structure
Some cards offer a flat-rate rewards earning program. For example, you may earn 2% cash back or 2 points per dollar on any spending you do, regardless of the category.
Other cards offer tiered rewards where certain spending categories offer bonus rewards, and any spending outside those categories has a base rewards rate. For example, you may earn 3 points for every dollar spent on travel, 2 points per dollar on dining, and 1 point per dollar on all other eligible purchases.
Some cards offer bonus categories that rotate each quarter. With that type of rewards card, you may earn 5 points per dollar in just the bonus category, but you’ll typically have to remember to activate that category every quarter.
Rewards redemption options
Consider how you’ll redeem the rewards you earn to maximize the value of your business credit card with rewards. Depending on the card, you may be able to receive a statement credit or check (also known as cash back), redeem for various gift cards, transfer points to travel partners, redeem for travel bookings, or make charitable contributions.
Card level
There are different tiers of business rewards credit cards. Some card issuers may have two to three different versions in the same card family.
For example, an entry-level rewards business credit card usually has no annual fee and a basic suite of benefits. For a small annual fee, the next tier up may be a card with slightly higher rewards and additional benefits. A premier or elite-tier rewards business credit card typically has the highest annual fee, but it may come with VIP-like perks and higher rewards potential.
Card type
Business rewards cards fall into three main categories: cash back, travel rewards, and points. It’s important to review these different card types to see which one aligns with your business spending.
Cash back
Cash back business credit cards allow business cardholders to earn money back on general business expenses. With these cards, you’ll receive a percentage back on your spending. Some categories may earn a higher percentage of cash back or you may earn a flat-rate—it depends on the card terms. As the cash back balance grows, you can typically redeem it for a statement credit or a check, though some cash back cards offer additional redemption options.
Travel rewards
Business credit cards with travel rewards are designed for business owners who book regular business trips. Usually, you’ll earn bonus rewards on your travel bookings with flexible redemption, meaning you can use your points to book everything from flights to hotel stays to rental cars. These cards also typically have travel benefits like trip insurance and rental car coverage.
Points
Points earning business credit cards (sometimes called miles cards) are a subset of travel rewards, but they’re often tied to a specific travel loyalty program through an airline or hotel chain. With these cards, redemption is limited to the corresponding travel brand, which may also provide special perks to cardholders.
For example, airline cards may offer a free checked bag or priority boarding, while a hotel card may allow late checkout or free room upgrades. For businesses whose employees use a particular airline or hotel chain, it may be worth considering this type of card.
Maximizing rewards from your business credit card
Maximizing rewards points comes down to getting the most value from the credit card while trying not to incur unnecessary costs like paying interest. Cardholders who pay their balance in full each month will usually be able to take the most advantage of their rewards. Another way to make the most of business rewards cards is to use them for the spending categories that earn the highest rates. This is why some cardholders choose to open several business rewards credit cards. For example, one card could be for business trips to earn free flights or hotel stays, and another would allow you to earn office supply rewards.
Other ways to maximize business rewards cards is to take advantage of additional offers and benefits. This can include things like signup bonuses, introductory 0% APR periods, or savings and discounts with partners.
Summary
Business owners who use business credit card rewards can earn cash or points on the everyday costs of doing business. Strategically choosing cards that reward your top-spending categories or that can reduce your business trip costs may prove valuable. They may also help you manage your business expenses.
