Business Credit Cards with Rewards

Business Credit Cards with Rewards

Many thanks to Wallet Hub for including Boston University on its expert panel regarding the Business Credit Cards for New Businesses. The interview link is here and I’ve separately pasted in the responses below. They distribute this content to national news outlets throughout the US, as well.

What are the best business credit cards with rewards?

By: John Kiernan, Credit Card Editor

Business credit cards with rewards give small business owners, and any employees they make authorized users, cash back, miles or points for every dollar they spend. Some business rewards credit cards yield the same amount on all purchases (some offers are from WalletHub partners). Others give you more rewards in designated bonus categories, which often include things like office supplies and telecommunication services. You could also nab an initial bonus worth hundreds of dollars for spending a certain amount during the first few months your account is open with many business rewards credit cards.

To help you find the best small business rewards credit card for your company’s needs, WalletHub’s editors compared more than 1,000 offers. You can check out their top picks in popular categories below.

Gregory L. Stoller
Senior Lecturer in Strategy and Innovation in the Questrom School of Business at Boston University

Should every small business owner have a business rewards credit card?

Businesses should use every cost efficiency to their advantage. Some companies can negotiate favorable payment terms, while others are able to lock in utility rates with long-term contracts, etc. Generating business rewards through credit card use is simply another way to better reduce expenses (or contain costs).

What percentage of small business owners would you say have the right rewards card?

Every rewards program is different. Accordingly, I think the rewards themselves have to be commensurate with that business’ operations. Receiving free hotel nights for a business whose executives don’t travel doesn’t seem to make a lot of sense. If people then use those perks for non-business purposes, it would only raise red flags. That’s also part of the due diligence process: making sure that the credit card you’re choosing is going to have features and benefits that either make sense for your business in its current state, or vis-à-vis future expansion (strategically changing into different business lines or implementing operational enhancements).

What tips do you have for small business owners who are shopping for a rewards card?

1. Don’t take the first offer that comes along. Take your time, and compare card like offers against one another.
2. Find out the terms and conditions of the rewards program. What happens after, say, two years? Will anything change after that time, for example? Do the points or the rewards ever expire? Can they be transferred equally to all members of the same business?
3. Is every member of the business eligible to receive a credit card and in the aggregate, do all of those credit cards equally contribute to the rewards balance?
4. Find out if missing one payment will ever jeopardize the rewards balance or the use of its program (i.e., should the business ever encounter a temporary rough spot, financially).