Rewards credit cards are best suited for businesses that use the card a lot. Higher interest rates mean that rewards cards are best for businesses that pay off the balance every month. Card owners get the most benefit from using the card as often as possible in order to maximize the rewards and recoup the cost of the annual fee and eventually come out ahead.
Rewards cards cover a wide range of benefits including standard hotel, airline miles, dining and gas station rewards to various cash back rebates and retail rewards from pretty much every major retailer.
Choosing a Rewards Card
Choosing the right reward card for your business is not easy. Cards that offer the biggest rewards also come with the highest fees. Figuring out how much you have to use a card to break even on a card that costs $100 per year and gives you three percent on every purchase is easy.
Figuring which card is best when they give you points that don’t always translate directly in to dollars or when the card only gives rewards for certain types of purchases or purchases from certain retailers is significantly more difficult.
To get a rewards card that works for your business, be sure to look for a reward card that makes sense for your business. If you are getting a card that only works with certain retailers, then make sure that it is a retailer that you use frequently.
Business owners who spend a lot of time travelling from one location to another would benefit significantly with hotel rewards. This type of reward would be made available if they own a general reward card where they can redeem their points for discounts on hotel stays or free nights. There are also hotel specific credit cards that they can use to get even deeper discounts.
With some hotel rewards cards the points earned can also be used for travel, theme park admissions, car rentals, cash rebates and more.
Again these cards could be general reward cards which offer retail rewards or credit cards which are co-branded with a specific retailer. Examples of popular retail reward cards are Amazon, Ebay, Best Buy, Disney, Barnes and Noble and the list goes on. Cardholders will earn points for all their purchases but the points will be doubled or tripled when they make purchases from the specific retailer. In some cases, the retailer will issue rebates of up to 5% on purchases made in their stores both online and offline.
This is good news for business owners who spend a lot of money for their business at a specific retailer, since they will save money on the items that they purchase there.
For business owners who spend a lot of time entertaining new and prospective clients, these rewards are a good way to save some money. They give them the ability to save at their favorite restaurants and bars across the country. These rewards may even be extended to include discounts on entertainment like live shows, sporting events and more.
No matter what type of credit card or credit card reward that you choose for your business, it always helps to keep in mind that small business credit cards offer a lot of built in rewards that you might not immediately notice. From itemized and categorized statements to building credit, separating business credit from personal credit, keeping track of employee expenses and making end of year organization that much easier, these other rewards like cash back incentives, rebates, discounts and free stuff are just icing on the cake.