Best cash back business credit cards

The best cash back business credit cards help businesses get bonus rewards for their spending, and many come with no annual fee and offer generous introductory offers. These cards also help build business credit while offering perks like business tools, travel insurance and consumer protections.

Business credit cards can help businesses track spending more efficiently and earn more rewards over time. If you’re a business owner considering a business card to earn rewards, consider some of our best cash back business credit card options.

Comparing the best cash back business credit cards

Top cash back business credit cards

How to choose a cash back business card

Finding the best cash back business credit card is challenging when there are so many business cards to choose from. The most significant factor is to get the most value in return from your spending, such as welcome offers, bonus categories and additional features. Consider the following as you decide.

Welcome offers can sway a decision

Get as much initial value as possible.

The best business cards offer sign-up bonuses and intro APR offers to make opening an account with them more attractive. A better initial offer can be the deciding factor between cards. However, always ensure you can meet the minimum spending requirement through your regular business spending. For example, if you don’t have heavy spending needs, the Capital One Spark Cash Plus wouldn’t be a good option since you’d have to overspend to get the bonus. Also consider the timeframe. If you can’t meet the spend requirement during the timeframe, you might check out options that are more feasible.

Compare earning categories

Get cards that reward you where you spend the most.

Make sure you compare earning categories so you can choose a business credit card with rewards on categories you’ll actually use. If spending fluctuates monthly in different areas, a flexible card like the Bank of America Customized Cash card might best fit your needs. Maximizing the $50,000 yearly spending all in the 3 percent bonus category would net $1,500 in cash back, an amazing return for a no-annual-fee card.

If you prefer not to keep track of spending limits, a flat-rate cash back card comes in handy. The best ideally earn a minimum of 2 percent back on any purchase you make. While there is no correct answer for all businesses, your spending needs can dictate which cards work best for you.

Look closely at cardholder benefits

Decide which cardholder perks you want the most. Some of the best business credit cards offer free employee cards, expense-tracking features, QuickBooks integration and more. Others may provide travel perks or annual fee refunds. Startup businesses may need flexible credit lines, making the Revenued card an ideal choice. But a card like the Capital One Spark Cash Plus with no preset spending limit might suit larger enterprises with heavier expenses. Every card has different benefits to suit various business needs. Choosing a card that helps you best run your business while rewarding your spending is essential. Conversely, if a card offers benefits you don’t value, that should diminish your overall assessment. If travel benefits aren’t helpful to you, then a business travel card becomes less valuable, for example.

Consider rates and fees

Think about how much your business spends and how much it can pay off each month. If you need to carry a balance, consider a business credit card with 0 percent APR offers on purchases or with a low-interest rate. Also, a charge card may best suit your business if you can comfortably pay off your balance in full each billing cycle.

You’ll also want to compare annual fees, remembering that cards with the best perks and rewards often have higher fees. Consider if the annual fee is worth it or if the fees outweigh the benefits. For example, you’d need to spend $7,500 on the Capital One Spark Cash Plus to earn enough cash back to offset the $150 annual fee. Watch out for interest and foreign transaction fees, which can quickly erase your earnings. Using the wrong card while abroad can be a costly mistake.

Eligibility requirements

Find the minimum credit score needed to qualify for a card, and check your credit score to see where you stand. While generally a business credit card may not impact your personal credit, there are exceptions, and issuers may consider your personal credit score when you apply. Business owners with excellent credit scores (FICO scores of 800+) typically have the best chances of approval, but other factors are also weighed. And approval doesn’t guarantee high credit limits. Issuers may also consider your business revenue, industry, size and more when determining your credit limit.

If your credit is less-than-ideal, consider business cards to help you build your credit. If you’re concerned about a low credit limit, a charge card like the Capital One Spark 1% Classic could be an option. Using credit-building cards responsibly will improve your credit score, leading to better card opportunities with more reward potential.

Maximizing your cash back business card

Avoid interest charges and don’t forget about the perks.

Getting the maximum return on your cash back business card comes down to making sure you are getting the biggest return on your business spending. If you opt for a flat-rate card, for instance, you’ll want to remember to use this card for every purchase.  Here are some tips to keep in mind:

• Take advantage of perks: Look at your card’s benefits and perks. Purchase protections, bonuses in specific categories, milestone spending incentives or any other added business or travel perks increase a card’s value, so make sure you make use of them.
• Make your payments: Pay your bill in full each month to avoid interest charges and penalty fees. These add up quickly and will easily wipe out the value of any rewards you earn. This is a good rule of thumb. Also, if your card has an intro APR offer, try to pay your balance by the end of that term.
• Pair cards together: See how potential cards pair with other cards you already have. Make sure cards don’t repeat the same benefits or categories. The best card portfolio functions like a team. Ideally, you want something to cover every expense with at least some bonus. A good example would be pairing a flat-rate cash back card with a card earning in specific bonus categories where your business spends frequently. That combination would cover most of your purchases with bonus earnings, giving you the best returns.

Frequently asked questions about cash back business cards

• Are cash back rewards taxed?

  Cash back rewards earned from credit card spending are not considered taxable. Since you must make a purchase to earn rewards, the IRS considers them a rebate or a discount instead of income. However, if rewards are given without any spending, those could be considered taxable. Consult a tax professional if you are unsure about any type of reward.

• Can I use a business card for personal spending?

  Using your business credit card for personal spending is technically not illegal. However, it could potentially violate the terms and conditions of your card agreement, which can come with severe consequences, such as account closure. It also makes it more challenging to track your business expenses and can have tax implications. While accidents happen, it’s best not to make a habit of putting personal expenses on a business card.

• What’s the best 2% cash back business card?

  Ideally, you’ll find a 2 percent cash back card with bonus categories. A flat-rate card is a simple option, but that plus bonus rewards makes for a more useful overall card. But what’s considered best for one might not be for another. The Capital One Spark Cash Plus offers a consistent 2 percent rate but doesn’t have other bonuses and might not be suitable for businesses that don’t spend as much. The best overall card for your business is the one that best meets your needs.

What’s next?

Get the resources and products you need to grow your business.

The bottom line

When looking for the right cash back business credit card, evaluating your spending needs is possibly the most important factor. But you might also consider welcome offers and other perks to assist with your initial decision. Plus, certain cards may pair better with ones you already have.

Every business card offers something different that may or may not be helpful for you. There is no one-size-fits-all answer when choosing the best card. Before signing up for a new cash back business credit card, compare the top options from all issuers to find the best card for your spending needs.