Best Cash-Back Business Credit Cards 2024

What is a cash-back business credit card?

A cash-back business credit card works just like a regular credit card except it usually comes with higher rewards rates on common business categories, such as:

• Telecommunications services. The telecommunications category typically includes telephone, internet and cable expenses. You can earn cash back when you sign up for fiber-optic internet service or install new telephones in your office.
• Office supplies. This broad category includes pencils, pens, staples and other supplies needed to conduct business.
• Shipping. If you deal in products instead of services, you may spend thousands of dollars on shipping fees every month. The best cash-back business credit cards allow you to earn rewards based on your shipping expenses.
• Gas stations. Gas credit cards for business let you earn cash back on gasoline, making them an excellent fit for salespeople, consultants and other professionals who travel frequently.
• Digital advertising. If you buy banner ads or other types of digital advertisements, you may be able to find a credit card that gives you extra cash back on these expenses.

No two credit cards are exactly the same, so make sure you’re familiar with the terms of the card you choose. Some cards offer a flat percentage of cash back on each purchase. For example, the Capital One Spark Cash Select for Excellent Credit gives you a flat rate of 1.5% regardless of category or amount spent.

Other cards have multiple spending categories, so you get a specific amount of cash back for each category. For example, you may be able to find a card that offers 3% back on travel, 2% back on office supplies and 1% on everything else.

Once you earn rewards, you need to redeem them. Your redemption options depend on which card you choose. Many issuers allow you to apply your cash back as a statement credit, reducing your total balance. You may even be able to request a direct deposit, cover your travel expenses, purchase gift cards or shop via branded portals.

You should know that some companies require you to reach a minimum balance before you can cash out. For example, if your card issuer has a threshold of $50, you can’t request a statement credit if you only have $43.28 available.

Cash-back business cards vs. cash-back personal cards

Although cash-back business credit cards and cash-back personal credit cards work the same way, a cash-back business card is the better choice for anyone who owns a business or works as an independent contractor.

Let’s take a look at how business credit cards compare with with personal credit cards:

Should I get a cash-back business card?

A cash-back business credit card is worth it if you spend enough on business expenses to benefit from your card’s rewards structure.

For example, if you run a freelance graphic design business, you may not need much in the way of office supplies or telecommunications services. In that case, a personal card may be a better fit for your needs, as many personal credit cards offer cash back on groceries, restaurants and other common spending categories.

In contrast, someone who spends $10,000 per month on business travel, office supplies, shipping expenses and other business costs is likely to rack up rewards faster with a business credit card than a personal credit card.

Pros and cons of cash-back business credit cards

How to choose the best cash-back business credit card

With so many options available, it’s important to compare several cards before choosing the best credit card for you. Here’s what you need to consider.

Identify your spending categories

The first step is to identify your top spending categories. It doesn’t do much good to sign up for a card offering 2% back on shipping expenses when you run a service-based business and rarely have to ship anything.

Once you review your spending habits, look for a card that offers extra cash back in your top categories. For example, if you spend a significant amount of money on business travel, look for a business travel credit card that offers additional cash back in the travel category.

Match your spending with rewards

It’s also important to match your spending with the rewards structure of your credit card. For example, if you choose a card that gives you extra cash back on purchases of $5,000 or more, you may want to hold off on making a $3,000 transaction.

If you can wait a little while, you may be able to reach the $5,000 spending threshold, increasing the amount of cash back you receive.

Determine how you want to redeem rewards

Some credit card companies offer more redemption methods than others. If you’re set on a particular redemption method, make sure the card you choose allows you to use your cash back as you see fit.

Check out the other benefits

The best business cash-back credit cards come with extra benefits for business owners, such as travel insurance, extended warranty protection, purchase protection and accounting tools. If these benefits are important to you, don’t settle for a bare-bones card.

Compare the fees

When you open a business credit card, you need to consider how the annual fee is likely to affect your finances. If there’s no annual fee, you don’t have to worry about how much you earn in rewards. Even if you only earn $100 per year, it doesn’t cost you anything to keep the card.

Some cards have high annual fees, however, so you need to think about whether the benefits of having the card outweigh the cost of paying $195 or more each year.

How to apply for a cash-back business credit card

To get a business credit card, you may need a score in the good to excellent range.

Although good scores start at 670, we recommend waiting until you have a 700 before you apply for a cash-back business credit card. A higher score will give you more options, reducing the risk that you’ll have to settle for a card that isn’t the best fit for your needs.

When you apply, make sure you have your Social Security number and other personal information available. You’ll need to provide your name, contact information, SSN and other data to help the credit card company determine if you meet the minimum criteria for approval.

Can I apply for a cash-back business credit card without a business?

Yes. You don’t have to set up a limited liability company or start a corporation to qualify for a business credit card. If you offer freelance web design services or operate a neighborhood lawn service, you can still benefit from using one of these cards to cover your business expenses.

How to maximize cash-back rewards for your business

To maximize your cash-back rewards, follow these tips:

• Use your card regularly. If you only use the card once or twice per month, you won’t earn much cash back.
• Consider pairing your cash-back business credit card with another credit card. If you have a second card available, you can switch to that card once you’ve reached the spending limit on your business card. For example, frequent fliers may benefit from signing up for one of the many travel credit cards on the market.
• Meet the minimum spending requirement to qualify for the welcome bonus. Your welcome bonus may be worth as much as $1,000, so don’t leave that money on the table.