Want to earn rewards for your everyday business spending? Compare business credit card rewards programs and find the right card for your company.
There is a wide range of business credit cards that offer rewards points for everyday work spending. These cards give business owners the opportunity to get more value out of using a credit card. If you decide to issue secondary or additional credit cards to your employees, you can also choose to either reward your coworkers or boost your business’s rewards balance when they use the account to pay for work expenses.
On the other hand, many business rewards credit cards also come with high interest rates and annual fees that can outweigh the benefits of the rewards program. Here, we look at everything you need to know about business credit card rewards programs so that you can compare cards and make the right choice for your business.
Compare business credit cards with rewards
Rates last updated September 27th, 2016.
- American Express Gold Business Card
10,000 bonus Membership Rewards points offer has been extended.
February 4th, 2016
- American Express Platinum Business Card
The 100,000 Membership Reward Points offer has been extended until 3 October 2016.
September 1st, 2016
- Commonwealth Bank Business Platinum Awards credit card
First year annual fee waiver has been extended until 31 October 2016.
September 2nd, 2016
How do business credit card rewards programs work?
Business credit card rewards programs work in a similar way to most personal rewards credit cards, earning points per $1 spent on the account. When you have accumulated enough points, you can redeem them for a wide range of rewards including flights, accommodation, cash back, gift cards and merchandise.
But unlike personal rewards cards, business cards often have different definitions for the “eligible transactions” you can earn rewards on. For example, many business credit cards offer points for ATO payments, other government charges and utility bills, while only a few personal cards count these transactions as eligible for rewards.
Business credit card rewards for employees
A key difference between personal and business credit card rewards programs is that many business cards also give employees the chance to earn rewards points. For example, the NAB Qantas Business card will earn Qantas Frequent Flyer points for any cardholder who is already a Qantas Frequent Flyer member. So if an employee became an additional cardholder for this account, they could add their Frequent Flyer membership details and earn points for every $1 they spent on their business credit card.
Similarly, the ANZ Business Black credit card can earn points for both the principal account holder (ie the business or individual who applied) and any individual cardholders on the account. If you’re a business owner, this gives you an opportunity to reward your staff, and if you’re an employee, it’s a great way to get more out of using a dedicated business credit card at work.Back to top
What are the types of business credit card rewards programs in Australia?
Some business rewards credit cards are directly linked to frequent flyer programs, while others earn points through a branded rewards program. We’ve outlined how these two options work below.
Frequent flyer business credit card rewards program
There’s a wide range of business credit cards that allow you to earn frequent flyer points for your spending, either directly or indirectly. Direct earn frequent flyer cards are linked to either the Qantas Frequent Flyer program or Virgin’s Velocity Frequent Flyer program and automatically credit points to your linked membership account.
Indirect earn credit cards, on the other hand, allow you to transfer rewards points to a broader range of frequent flyer programs, such as Asia Miles, Singapore Air’s KrisFlyer, Etihad Guest or Emirates Skywards. Credit card rewards programs that offer this redemption option include American Express Membership Rewards, ANZ Rewards and St.George Amplify Business. Check out our guide for a full list of credit card rewards programs that offer point transfers to frequent flyer programs.
Credit card branded rewards programs
Some credit card brands also have their own business rewards programs that earn points per $1 spent. You can then use these points to redeem rewards such as travel bookings and upgrades (including flights and accommodation), gift cards, cash back, merchandise and even gifts for clients.
Many of these programs also allow you to transfer rewards points to frequent flyer programs. The main credit card business rewards programs in this category are outlined below:
These business credit card rewards programs can provide more flexibility for rewards when compared to specific frequent flyer options, but considering both types of rewards programs will help you find a credit card that best suits your business needs.
How do you compare business rewards credit cards?
If you’re interested in getting a business credit card with a rewards program, it’s important to consider the other features available so that you can find a card that suits all your business needs. We’ve outlined the key factors to include in your comparison below.
- Interest rates. Business credit cards have standard interest rates for both purchases and cash advances, with some cards charging as much as 22% p.a. If you plan on carrying a balance on your card, make sure you factor in these charges for both you and any employees using the account.
- Annual fee. Business rewards credit cards typically have annual fees ranging from $100 to $450 but some can be as high as $1,500. Ideally, the benefits and rewards you get from the card should outweigh this cost.
- Additional cardholder fees. Some business credit cards charge an annual fee for each additional cardholder on the account. This could be as low as $12 p.a., or as much as $150 p.a., so check the details for individual cards if you want employees to also use this credit account.
- Cash advance fee. If your business credit card will be used to get money out of an ATM, to pay for gambling, to buy foreign currency or for any other transaction that’s defined as a “cash advance”, you will have to pay a fee of between 2% and 4% of the transaction value. Check the Product Disclosure Statement for what’s considered a cash advance transaction, or call your issuer if you want to find out if specific payments will be subject to this fee (for example, government charges or utilities).
- Business support features. Business credit cards often include a range of additional features that are designed to simplify the accounting process. These features could include individual spending limits, itemised statements and compatibility with software such as Microsoft Excel and MYOB.
- Complimentary extras. Business credit cards often have a range of additional perks, such as travel insurance or liability insurance, to help keep the account safe. If you use these benefits, they can help offset the cost of the card’s annual fee.
How to apply for a business rewards credit card
The application process for a business rewards credit card can differ slightly to that of a personal rewards credit card. Business rewards credit cards generally require you to have an ABN (Australian Business Number), and you must be able to fulfill the following eligibility criteria:
- Age. You must be at least 18 years old to apply for a credit card in Australia.
- Residency status. Generally, you must be a citizen or permanent resident of Australia to apply for a business credit card. If you’re a temporary resident, read our guide to find out what options may be available to you.
- Credit history. You must have a good credit rating and no history of bad debt or payment defaults.
- Business status. You must be a business owner, director or partner with a valid Australian Business Number (ABN). Note that most business credit cards allow sole traders and contractors to apply, as well as business owners for larger organisations.
- Personal liability. A personal liability business credit card requires the primary applicant (ie you) to take full responsibility for the account. Generally, you can apply for this type of business credit card without providing full business financials, but you will need to provide information on your own income and so on.
- Business liability. A business liability credit card requires the business to take responsibility for the account. As a result, more thorough financial information on your business is needed when you apply for this type of card.
- Frequent flyer membership details. If you choose a rewards card that offers frequent flyer points for spending, you will need to include your current membership details so that you can start earning points.
Keep in mind that the application criteria and requirements may vary depending on the card that you choose. Checking this information before you apply for a specific card can help you speed up the application process.
Whether you want to boost your rewards balance, offer additional benefits to employees or get gifts for clients just by paying with plastic, there is a range of business credit card rewards programs that could suit your needs. Now that you know more about these programs and their features, you can make an informed decision about the type of account and rewards you want for your business.Back to top