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4 Useful Business Credit Card Rewards |
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Business credit cards'
rewards programs provide added value to what can be an
already valuable money management tool for businesses of all sizes.
Fees, interest rate, credit limit and repayment terms are vital
considerations for any card. Once you find the right card for your
business, though, also consider the rewards the business credit card
offers.
Cash Back
Cash back on the total amount spent is one of the easiest to understand
and measure business credit card rewards. In cash back programs, at a
given time each year, you will receive a check for a given percentage
of the value of purchases made. For a business using multiple cards to
control employee spending, this can be a sizable amount.
Cash back offers range from 1 percent to 4 percent and can vary
depending on what the cash back is used for. As an example, some cards
offer 4 percent toward gasoline purchases up to $6,000 and a lesser
percent on any other purchases. On business spending of $150,000, your
firm gets $6,000 back to spend on gas.
Cash back programs equate to a guaranteed discount on your purchases,
and that’s a benefit you can count on and manage.
Air Travel
Many business credit card rewards programs allow you to accumulate
points toward airfare. (Some actually accumulate cash toward airfare.)
As with a cash back program, the benefit can be measured.
If you receive airfare for a flight in the continental United States at
20,000 points (or $20,000 spent) and the flight costs $450, that
equates to 2.25 percent of your purchases back.
Be aware that various cards require differing point levels for travel,
that there can be restrictions on when you fly and that some cards
charge an additional fee when travel is booked. All of this must be
taken into account to find the best business credit card rewards
program for you.
Other Travel
Just as points accumulate for air travel, some business credit card
rewards programs target hotels and rental cars. You can achieve the
same effective discount on your total spending by using points toward
hotel stays. The higher the room cost of the hotel per points spent,
the better your discount.
This can be particularly useful if business requires that you stay at a
high-end hotel, you use the rewards points as an employee incentive or
you just want to reward yourself with a more luxurious stay.
Product and Service
Discounts
Many business credit card rewards programs take the form of
partnerships between the card issuer and various product and service
providers. As an example, one card earns you discounts with shippers
such as FedEx, which can be valuable for a small business. Others link
up with major office supply chains, which allows for other desirable
discounts.
Business credit card rewards programs should not be the driving force
in choosing your company credit cards. However, if the fees, rates and
terms are the most competitive you can get, the rewards programs can
add substantial value tailored to the specific needs of your
firm.
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Credit Card Articles > Rewards Cards > 4 Useful Business Credit Card Rewards
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