Is a cash back business card right for you?

With multiple types of business credit cards to choose from, a cash back card can be a great option if you want more money back in your pocket. Cash back cards give you a percentage back for each purchase you make. This could be at a fixed rate or for specific spending categories.

Learn more about how a cash back card can support your business’s financial goals and opportunities for growth.

Key takeaways

• Cash back business credit cards can help optimize your company’s spending.
• Cash back gives you money back for each purchase you make with your credit card.
• Explore cash back redemption options to determine what makes the most sense for your business’s needs. 

Cash back business credit cards typically allow you to earn back a percentage of each purchase you make. Usually, cash back rewards accumulate and may be redeemed as a credit on your account, reducing your overall balance. However, some cards or issuers may allow you to redeem rewards for gift cards or even cash them out via a check.

Cash back rewards are usually one of the more straightforward business credit card rewards programs since they represent a monetary value (unlike points or miles). However, it’s important to understand the various earning and redemption methods so you can maximize your rewards.

The best business cash back credit cards cater specifically to your company’s spending habits. For example, if your spending concentrates on certain areas, consider cards that offer higher cash back in those spending categories. If your spending is varied, a fixed rate percentage may allow you to make the most money by offering cash back for each card swipe, regardless of what it’s for.

You earn a certain amount of cash back rewards with each qualifying purchase you make with your business credit card, similar to a rebate. How much you earn on different types of purchases can vary. For example, some offer a flat 2% cash back for all purchases. Other cards may offer tiered rewards, with higher percentages for certain vendor or product purchases, like 5% cash back on fuel, 2% cash back on dining and 1% cash back on everything else. Keep in mind: Cards with tiered rewards usually have more stringent conditions, such as caps on how much you can earn or redeem at once.

Cash back rewards usually accumulate with each purchase you make, but they may not always be immediately available. With some business credit cards, you may have to accumulate a certain amount before you can redeem them and you may need to wait until your monthly statement posts. Some business credit card issuers automatically apply your cash to your balance each month, while others offer flexible redemption options like saving cash back rewards to purchase gift cards.

Once you’ve accumulated enough cash back rewards—if they’re not automatically applied to your balance—you should be able to redeem them as a statement credit to reduce your account balance. Some business credit cards may also allow you to redeem cash back rewards for gift cards, specific product discounts or as a direct deposit.

Adopting a strategy to manage your business credit card account and rewards may help you get more value from them. To maximize your rewards and the benefits for your business, try to keep the following tips in mind.

Some cash back business credit cards offer additional benefits that can help you further optimize your spending and access perks for your company. One example is promotional partnerships with specific entities, like big-name restaurants, hotels, event centers or supply stores. Spending at these places may earn you extra cash back rewards or additional discounts, saving you even more money. Capital One also offers entertainment and dining benefits to earn back even more cash on purchases that matter to you.

Setting spending limits on cash back cards can help ensure a manageable balance, even when you have multiple authorized employees using your business credit account. Capital One makes it simple to manage employee spending. You can choose to add account managers or authorized users to employee cards. Authorized users can make purchases on the company’s behalf and track their spending. Account managers have more access to the account and the ability to manage authorized users, monitor finances and make payments.

It can be tempting to use your cash back card as much as possible to accumulate rewards. However, this can also accumulate interest and impact your savings. Strive to pay your card balance off each month, which can also help improve your business credit score. And if you know you want to use your card for a big purchase, consider a low-APR business card that gives you time to pay off the balance before interest starts occurring.

Keep track of your business purchases across the board and understand the available benefits and reward rates. Cash back cards offer flexibility and adaptability to fit a wide variety of situations and business needs.

Choosing the business card with the highest cash back rate may not always be the best option. To find the best business cash back credit card, consider how the rewards fit into your business’s purchasing needs. Here are a few things to keep in mind:

• Consider where you spend the most. If you spend a lot in one category, like fuel, then a card offering more cash back on gas station purchases may lead to more savings. Or if your spending is diverse or variable, then a flat-rate cash back business card may be best.
• Pay attention to card terms and conditions. Business cards with the highest cash back rates may have annual fees, higher APRs or cash back earning limits. There also may be limitations on how you redeem cash back rewards.
• Choose automatic cash back rewards to cut costs. If you want to reduce your business expenses, then a card that applies cash back to your account automatically may suffice.

Consider creating an outline of what you want from a business credit card. Are you looking for more cash back on things like fuel, an introductory APR, a low annual fee and cash back rewards that are applied automatically to your account? Once you determine your needs, finding a card that fits your business will be easier.

Here are answers to some frequently asked questions to help you make an informed decision about choosing the best business cash back credit card for your company.

A business cash back credit card could be a good choice for your business if you’re looking for a way to manage your budget and cover expenses while earning straightforward, flexible rewards. Do your research and choose the best rewards credit card for your business, making sure it aligns with your spending habits and financial goals.

Enjoy business-grade benefits, from fraud liability and simplified budgeting to free employee cards, with every Capital One cash back business card. If you’re ready to start earning rewards for your business expenses, browse Capital One business cards to see which one is right for you.