Compare Business Rewards Credit Cards

What is a Rewards Credit Card?

This type of credit card rewards you each time you make an eligible purchase. Essentially, you earn rewards like cashback, points, or travel miles for every dollar spent. Some rewards cards offer other benefits, like extended manufacturer’s warranty, purchase protection or travel insurance.

What Are Rewards on Offer?

Not all reward cards are created equal. The types of rewards you can earn will vary depending on your provider, but they usually include:

Cashback: One of the most straightforward forms of rewards, cashback offers a percentage of your spending back to you. This amount is then applied to your account to offset your balance.

Points: Many credit card providers have a points system, and you earn a certain number of points for every dollar spent. For example, $1 might equal 2 points. The accumulated points can then be redeemed for things like merchandise, gift cards, or even as a credit towards your account.

Travel miles: If you travel often in your business, a credit card that offers travel miles could be useful. These cards reward your spending with miles or points that can be redeemed for flight tickets, upgrades, or even hotel bookings.

Partner discounts and offers: Rewards credit cards come with a range of partner offers and discounts. These can include exclusive discounts at partner stores, special offers on services, or even access to exclusive events.

It’s worth noting that American Express offers one of the most extensive partner transfer programmes. This allows you to transfer your reward points to popular frequent flyer and travel programs, maximising the value of your rewards.

Let’s say you are a frequent flyer with Air New Zealand. As you use your American Express card for everyday purchases, you accumulate reward points over time. With the American Express Partner Transfer Program, you can transfer these accumulated points to Air New Zealand’s Airpoints program.

Sign-Up Bonus

A sign-up bonus is a feature credit card companies use to attract new customers.

You get a generous initial reward when signing up for a new credit card account and meet specific criteria.

Typically, these bonuses come in the form of a large lump sum of points, cash back, or travel miles. To be eligible for the bonus, you generally need to spend a certain amount of money within a set timeframe, usually in the first few months of the account opening.

To maximise the benefits of a sign-up bonus, think about the following:

Understand the terms: Make sure you clearly understand the terms and conditions associated with the sign-up bonus. This includes knowing the spending threshold and the timeframe you need to reach it.

Plan your expenses: If you have big business expenses coming up, it might be a good time to apply for a new card. This way, your planned expenses can help meet the spending threshold for the sign-up bonus. Don’t make unnecessary purchases just for the sake of the sign-up bonus, though, as this can lead to debt.

Bonus strategy: Have a plan on how you intend to use the bonus. Whether it’s cashback, travel rewards, or points, knowing how to use the bonus effectively will maximise its value.

A sign-up bonus can be exciting, but it shouldn’t be the only reason you choose a certain rewards credit card. Look beyond the initial bonus to the long-term benefits and suitability of the card for your business.

Pros and Cons: Rewards Business Credit Cards

Pros:

Rewards and extra perks

As the name suggests, the main benefit of these cards are the rewards they offer. The card might also come with additional perks that can benefit your business.

These could range from complimentary insurance, concierge services, and lounge access to exclusive discounts from associated merchants.

Simplify business expenses

A separate business card keeps your business expenses external to your personal ones. Use your credit card statements as a record of your transactions and integrate them into your accounting software.

Increase rewards with employee cards

With business credit cards, you can provide your employees with their own cards and earn rewards on their expenses.

Treat your team

Think about using the rewards you’ve earned to treat your team. You could redeem travel miles for an off-site team retreat or use cashback or points to purchase end-of-year gifts for your hardworking employees.

Cons:

Higher fees and rates

The annual fee and/or interest rate of credit cards with generous rewards programs are usually higher than those without.

These steeper costs can cancel out the value of any perks if your business carries a high balance from month to month or you don’t use the rewards effectively. You need to consider if the rewards you can earn justify the higher fees; is your card costing you more than the benefits it’s providing?

Temptation to overspend

The appeal of bonuses and rewards could lead to unnecessary spending, resulting in debt and hefty interest charges.

Reward restrictions

There are usually restrictions on earning and redeeming rewards. These could include caps, expiry dates, and conditions about how they are used.

The bottom line? Rewards credit cards can offer great perks for businesses that don’t carry big balances and plan to use rewards strategically.