Fri. Feb 26th, 2021

Earning cash for If you are hoping to save money and preserve cash flow then your business can be lucrative. Compared to travel rewards cards, a business cash rewards credit card can prove valuable when it comes to redemption options, especially if the COVID-19 epidemic is limiting your travel. And if you work remotely or are self-employed, you may not get that much from rewards and perks. Business travel credit card might offer.

How Business Cash Back Credit Cards Work

Business cash back credit cards are similar to personal cash back credit cards – you earn a high percentage of what you spend.

Jacob Dayan, CEO and founder of Community Tax, a company that provides small business bookkeeping and account services, says that having a business cash back card allows you to separate business and personal expenses Huh.

How you earn cash back and to what extent depends largely on the card. Some commercial cash rewards cards allow you to earn flat percentages back, regardless of what you buy. Other cards offer tier rewards, with some types of purchases earning more cash than others.

Professional cash back credit cards can also offer unlimited cash rewards or can cap the amount of cash back you can earn. You are more likely to see a cash back cap on cards that offer tier rewards and higher cash back reward rates.

How Businesses Can Benefit With Cash Back Cards

There are many benefits to using a cash back card for your business. Compared to a debit card or cash, a credit card offers more payment flexibility. With the prize, you can be paid for whatever you spend.

If you are focused on saving money for your business, then earning cash with a business credit card can be useful. Depending on the card, you may be able to redeem the cash back for:

  • Statement credit
  • Deposit to a business bank account
  • Gift card
  • Travel and unique experiences
  • charitable donation
  • Merchandise and shopping
  • Membership

If you are choosing between a business cash back and a business travel card, consider your needs.

“Cash back cards have the advantage without the complexity of redemption rules and procedures that other reward cards like Rewards Cards have,” says Ralph Dangelmayer, CEO of card payments processor BlueSnap. “And, of course, cash has the most flexibility of use.”

A travel rewards card can be great – but it is only as good as it can be used. If your travel activity is curbed, as likely as it is due to a coronavirus epidemic, you may have fewer opportunities to earn or redeem travel rewards. With a cash back reward card, you can continue to earn rewards on everyday business expenses.

How to choose Business Cash Back Card

If you are interested in getting a cash back reward card for your business, take the time to compare card options. While reviewing the card, keep in mind:

  • Prize structure
  • Including card fee, annual fee and foreign transaction fee
  • Regular interest rate for purchases and balance transfers
  • Introductory interest rate for purchases and balance transfers, if offered
  • Introductory cash back bonus
  • Cash back redemption option
  • Security and expenditure management control
  • Other card benefits and perks

The award structure should match the way your business typically spends money. Therefore, if you typically spend the largest part of your business budget on office supplies, for example, you may want to choose a card that is most beneficial in that purchase category.

Cash rewards should be weighed against the card’s annual percentage rate, Dangelmeyer says, if there is a possibility that you can take a balance.

Beyond the ongoing rewards, consider whether the card offers an introductory cash back bonus and what conditions you must meet to qualify. Usually, this means spending a certain amount of money within the first three months of opening an account. If you can meet the minimum requirement, it is a simple way to earn more cash on top of your regular rewards.

Keep in mind that the more the card offers, the more likely it is Pay an annual fee. Paying an annual fee in itself is not bad, but it should be justified by the value of the rewards and perks you are receiving. For example, paying a $ 500 annual fee will not make any sense that you are earning only $ 300 in cash every year and are not taking advantage of money-saving benefits such as cardholder discounts or travel credits.

Get most commercial cash back cards

If you decide that your business needs a cash back reward card, consider these tips for this.

  • pay in full. Charging large purchases for a commercial cash back reward card can be an easy way to qualify for an introductory bonus. But plan to pay it in full or look for a card that offers an initial 0% APR on purchases to avoid paying interest charges. Carrying a balance with an interest month can cancel the value of any cash back you are earning.
  • Match cards to spend. If you choose to use multiple cash back business cards, make sure the rewards are a good fit. “Look at your spending habits and decide what kind of cash rewards are better for your pocket,” Dayan says.
  • Take advantage of card allowances. If your business card offers any money-saving extras such as shopping, dining and travel offers, along with withdrawing the extra money, use them.
  • Set employee expense control. Although employee cards can help you get more cash back, be sure to monitor account activity to see how the card is being used.

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