Assessing Business Credit Card Rewards Programs
Business credit cards typically offer rewards programs that fall into three main categories:
Business travel credit cards often provide discounts or points for purchases such as airfare, train tickets, car rentals, fuel, hotels, and on-the-go meals. Co-branded cards associated with specific hotel chains, airlines, or gas station chains may offer substantial points or discounts. However, using these cards may limit your flexibility when it comes to using other providers.
Some cards may also offer additional travel-related perks like car rental insurance, airport lounge access, concierge services, and fee-free foreign currency exchange. If your business involves frequent travel, these cards can be highly beneficial, but infrequent travelers should consider whether they can fully benefit from the rewards.
Office Supplies and Marketing Expenditures:
Cards that offer discounts on office supplies, equipment, or marketing expenditures like social media advertising are advantageous for minimizing business costs, particularly if your business has frequent supply needs. These cards may also be co-branded, so it's worth evaluating the range of goods and services provided by the partner to ensure they meet your requirements.
Manager and Employee Perks:
Some cards provide a variety of personal treats and perks, such as weekend getaways, restaurant meals, and theater tickets. These can be used to reward high-performing employees or indulge yourself and your dedicated family after working diligently.
Assistance in Business Management
Many business credit card issuers offer features to help you manage your business effectively. For example, some cards provide itemized statements that can be directly downloaded into your accounting software. Others offer tools to link your itemized statement with corresponding receipts.
If you have employees, you might consider a card issuer that provides multiple cards under the same account, pooling spending across all cards when calculating cash back or reward points. Certain issuers allow you to set individual spending limits for each employee's card. Employee spending is typically reflected on your itemized statement, enabling you to track expenses directly without waiting for expense reports.
In conclusion, with the extensive range of small business credit cards available today, selecting the right one may seem daunting. However, dedicating time to evaluate the various types of cards is worthwhile, as it allows you to find the best business credit card that aligns with your specific needs.