Best Cash Back Credit Cards for Business

The best cash back business card is the Capital One Spark Cash Plus (see Rates & Fees) because it offers unlimited 2% cash back on all purchases. Capital One Spark Cash Plus also has an initial bonus of $2,000 for spending $30,000 in the first 3 months, plus an additional $2,000 bonus for every $500,000 spent in the first year. There is an annual fee of $150, and it is available to applicants excellent personal credit.
 

Best Cash Back Business Credit Card Comparison

It’s also worth repeating that you shouldn’t forget about cash back credit cards meant for personal use. There are some really great deals right now, especially if you don’t plan to spend enough to qualify for a business card’s initial bonus.

Who Should Get a Cash Back Business Credit Card?

Business owners who want a credit card with straightforward, flexible rewards that can’t be devalued should get a cash back business card. Similarly, you should get a cash back business card if you focus more on everyday business purchases than travel. Below, we’ll explain the advantages and disadvantages of choosing a cash back card over a points or miles card in more detail.
 

Get a cash back business credit card if you:

• Want a straightforward rewards structure: Cash back is the simplest type of credit card rewards because you can use it for just about anything you want and the value is immediately apparent, whereas the value of points and miles can vary between redemption options and isn’t always clearly disclosed. Typically, you can redeem your cash back for a statement credit, a check, or a deposit to a bank account. This makes it easy to invest your rewards right back into your business, reducing monthly expenses and improving cash flow.
• Want to avoid rewards devaluation: With business credit cards that offer points or miles, the issuer has the power to devalue those rewards at any time (e.g. making 1 point worth 0.75 cents instead of 1 cent). They can’t do that with cash back because the value of a dollar is set.
• Focus more on everyday purchases: Points and miles credit cards are often more travel-focused, which is good for people who go on a lot of business trips. But cash back cards tend to focus their bonus rewards more on everyday business spending categories, rather than travel.
• Have limited or bad credit: Business credit cards for limited or bad credit are more likely to offer cash back than points or miles.

On the other hand, if you plan to use your business credit card for a lot of business travel, you may want to instead consider a travel credit card that gives points or miles on purchases. Points and miles cards also often give much larger initial bonuses than cash back cards, though that’s not always the case.

If you decide that a cash back business credit card is the right type of rewards card for you, you’ll need to compare cash back offers to find one that fits your specific needs and spending patterns. For example, some cards give high earning rates on certain purchases and 1% cash back on everything else, which is good for companies that spend a lot of money in one or two particular categories. Other cards offer a higher than 1% flat cash back rate on all purchases but don’t give any ongoing bonus rewards, which is better for businesses that spend money in a wide variety of categories.

Learn more about getting a business credit card.
 

How to Choose a Cash Back Business Credit Card

The cash back business credit card you choose will depend on your business’s spending patterns and the types of rewards and benefits you prefer. When choosing, make sure you go with a card that lines up with your routine business expenses.

• If your biggest business expenses are gas and office supplies, for example, you may want a card that offers a high bonus rewards earning rate in those categories.
• If your spending is consistent among several categories, a flat rate credit card may be better.
• You should shop around for cards that offer benefits that you’re most likely to take advantage of, such as employee credit cards and expense tracking, in addition to perks like travel insurance, rental car coverage, and purchase protections.
• If a card charges an annual fee, determine whether the card’s rewards and benefits justify the cost. Paying a fee should unlock additional savings.
• Factor in cards’ initial bonuses when comparing offers. Some cards can save you hundreds of dollars in just a few months, as long as you can spend enough to meet the threshold for the bonus.

Bear in mind that your personal credit score will ultimately decide which cash back business credit cards you are most likely to qualify for. Cash back business credit cards with the best rewards and features typically require a credit score of 700+ for high odds of approval. To see where you stand, you can check your credit score for free here on WalletHub.

Learn more about how to choose the best cash back credit card.
 

How to Use Cash Back Business Credit Cards to Manage Business Expenses

Cash back business cards can be a powerful tool for managing business expenses, controlling employee spending, and even improving cash flow. However, you need to first understand how to take advantage of the features that your credit card offers. For example:

• Separate your expenses: A business credit card enables you to separate business purchases from personal expenses, which helps to maintain clear financial records and simplify accounting.
• Take advantage of built-in tools: Business credit cards often allow you to access robust expense management tools through your online account, which allow you to monitor spending in real time and see which employees are making purchases as well as what those purchases are. You might also find other tools such as a function that scans receipts and matches them with the corresponding purchases.
• Use compatible accounting software: Many business credit cards integrate with accounting software such as QuickBooks to make tracking expenses easier, saving you time and money. The software allows you to import your purchases and other data, doing some of the legwork of monthly budgeting.
• Explore additional money-saving features: On top of your regular rewards, some business credit cards partner with specific merchants to offer bonus cash back rewards or discounts on specific purchases.
• Manage employee spending: Employee credit cards allow you to set spending limits and track employees’ expenses separately, so you can control overall business spending while preventing any unauthorized purchases.

By using business credit cards strategically and responsibly, companies can better control their finances while saving money. Expense management features vary depending on the card, so make sure you shop around for a card with tools that fit your company’s accounting practices.

Learn more about how business credit cards work.
 

How to Get the Most Out of Your Cash Back Business Credit Card

To get the most out of your cash back business card, start by familiarizing yourself with the terms and conditions of your card’s rewards program. If your card has bonus rewards categories, make sure to always charge expenses in those categories to your card. Then, pay on time each month and strive to pay your balance in full and to avoid costly interest charges (unless you’re financing something under a 0% intro APR).

Other tips to get the most out of your cash back business card:

• Get cards for your employees: Getting an employee card is the business equivalent of adding an authorized user. Your employees can get their own cards that are tied to your account’s credit line, which can help you earn cash back rewards on their spending. You can also set custom spending limits for employees.
• Earn the initial bonus: If your card has an initial bonus, make sure to spend enough within the first few months to hit the threshold for earning it (assuming you can easily afford it). For example, you might get a $500 bonus if you spend $3,000 in the first three months.
• Consider a flat-rate cash back credit card: Sometimes, the best rewards credit card is one that offers an elevated rewards rate on all purchases – like 2% cash back, for example. This approach is best for businesses that don’t have one particular category they spend the most in, or whose spending changes a lot from month to month. However, if you have one or two spending categories that far exceed others, try to get a card that offers bonus rewards in those categories.
• Watch out for “fake” cash back: Some cards advertise cash back but actually give points redeemable for cash back in addition to travel, gift cards, merchandise or other things. These cards can still be good, but your rewards can be devalued. You’ll have to determine whether an individual card is worth it based on how much it currently offers per point.
• Keep flexible bonus rewards in mind: Some cards may automatically award the highest rewards earning rate to your top spending categories each month, so be sure to monitor your purchases and adjust your spending if necessary.

Learn more about how to get the most out of a business credit card.