Earn points on business expenses and take advantage of platinum perks with a business rewards credit card.
Business credit cards with rewards programs can make your dollars work harder, earning you points that can be redeemed for flights, money off your credit card balance, gift cards and a whole range of other options. The following comparison will help you decide whether a rewards credit card is right for your business.
Compare business credit cards with rewards programs
Rates last updated September 29th, 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 does a business credit card with a rewards program work?
Business reward credit cards offer you rewards or frequent flyer points for every dollar you spend on eligible transactions. Eligible purchases cover almost all everyday business transactions – including ATO payments and government charges – but generally exclude cash transactions such as ATM withdrawals. Points can be redeemed for different rewards, including flights and travel bookings, gift cards, charitable donations, cash back and merchandise. Rewards points can also be transferred to select frequent flyer programs.
Jeff joins Jim's Mowing
Jeff has just become a Jim’s Mowing franchisee. He applies for the American Express Business charge card so he can get rewarded for the money he spends on his new business. This card gives him membership to the American Express Membership Rewards program. It also offers other benefits for Jeff’s business, including no preset spending limit, interest free days and a complimentary insurance package.
The American Express Business charge card gives Jeff one Membership Rewards Point per dollar spent. Jeff charges $1,000 a week to his American Express business credit card. This gets him about 48,000 points every year. Jeff also happens to love Ikea flat packs, so when he browses the reward options he sees he can redeem 10,900 Membership Rewards points for a $50 IKEA voucher. At his current rate of spending, Jeff could get $200 worth of IKEA vouchers through this rewards program.
Features of a business credit card with a rewards program
Here are some of the key features you can expect to find with a business rewards credit card.
- Rewards program. Get rewarded for eligible purchases you make for your business. Some business credit cards are linked to a frequent flyer program, while other business options accrue points through credit card provider reward programs. For example, the CommBank Business Awards credit card earns CommBank Award Points, whereas the NAB Qantas Business credit card rewards you with Qantas frequent flyer points. Points can be redeemed for a number of flight and non-flight rewards. American Express even let you use your Membership Rewards points to pay off your business credit card balance or to buy foreign currency.
- No points cap. Business rewards credit cards generally have no limit on the number of points you can earn in a year.
- Complimentary insurances. Some business credit cards may offer complimentary insurance for a range of needs, including travel, liability and business theft. The level and type of cover varies depending on the business credit card, but common complimentary cover includes transit accident insurance, international travel insurance, purchase protection insurance, extended warranty insurance and business liability insurance.
- Interest free days. Business credit cards with rewards programs may offer a set number of interest free days on purchases made during each statement cycle. This feature allows you to make interest free purchases between statement periods when you pay your balance back in full each month.
- Credit limits. Business credit cards can have high credit limits, and some have no pre-set spending limit at all. Compare your options to ensure your card supports your spending needs.
- Accounting software. Business rewards credit cards provide reporting tools that can be easily integrated with the leading business accounting software such as MYOB and Microsoft excel.
- Fraud protection. Most card schemes (Visa, MasterCard and American Express) provide anti-fraud guarantees, giving you a level of protection against unauthorised purchases. Business credit cards may also provide specific policies which provide financial compensation in the event you’re the victim of credit card fraud, or if an employee uses an additional card for unauthorised purchases.
- Multiple cardholders. Business credit cards offer additional cards for employees so that you can keep track of all your business expenses, regardless of who makes them. The number of supplementary cards can range from as few as 2 to 100 or more and can be catered to suit businesses of all sizes.
- Liability. With a business credit card, you may be able to choose between personal, joint and shared liability for the debt. This decision can make a huge difference to your personal credit history, so it’s important to consider each option and discuss it with your business partners or financial advisor before applying for a card.
- Control over cardholder spending. The primary signatory to the business rewards credit card account can set spending limits for additional cardholders.
Who are rewards business credit cards best suited to?
There are rewards business credit cards for small businesses, corporate credit cards with rewards for large businesses and frequent flyer business credit cards for workplaces with jetsetters. Ideally, rewards business credit cards are best suited to cardholders who regularly spend and repay their credit card debt in time. Regular spenders will be able to earn more points and redeem better rewards and someone who pays off their debt will be able to enjoy the rewards without additional interest costs.
The key thing to remember when it comes to business credit cards with rewards is that the value of the card should be greater than it’s annual fee. You can look at the value of a $50 or $100 gift card to gauge the value of a rewards credit card. For example, American Express offer a $50 Ikea gift card for 10,900 Membership Rewards points. The American Express Business charge card offers one Membership Rewards Point per dollar spent and has an annual fee is $109. This means you would need to spend a minimum of $25,000 every year for the value of the rewards to surpass the cost of the annual fee.
Consider how much you spend on business expenses each year and the rewards your business needs. Is it flights, do you want to use points towards money off your next statement, you can even let your employees use their points for charitable donations for a tax break.
Who are rewards business credit cards not suited to?
If your business turnover is less than what you need to break even on the annual fee, a business rewards credit card may not be the most cost effective solution. In this case, you might want to consider a low rate or no annual fee business card, such as the CommBank Small Business credit card or the Bankwest Business Low Rate MasterCard. While these products may not offer rewards, you won’t be paying for features you don’t use or can’t afford.
How to apply for a business credit card with a rewards programs
An application for a business credit card can be completed in under 15 minutes. Click the ‘Got to site’ button to go to a secure online application hosted on the financial institution’s website.
Application requirements for a business credit card with a rewards program vary from product to product. Common eligibility requirements include:
- Age. Be over the age of 18.
- Residency. Be a permanent Australian resident.
- Income. Most business credit cards with rewards have a minimum income requirement. For example you need to earn over $35,000 per annum to be eligible to apply for the Westpac Altitude Business Gold Visa credit card.
Make sure you have the following information and documents on hand to assist with your application.
- Your financial information. You’ll need to provide information about your income and your expenses as well as details of any assets or liabilities. You may also be required to provide financial information specific to your business, such as the annual turnover or regular business expenses.
- Identification. You need to identify yourself and your business. You can do this using your ABN or ACN and photographic identification such as your driver’s licence.
Business credit cards with rewards programs can be a quick way to rack up points while managing work expenses. But these products can be expensive. If you don’t think you will spend enough to cover the cost of the product’s annual fee, compare a range of business credit cards to find the right option for your business.Back to top