Guide to business credit card rewards

Along with potential benefits like simplifying expense management and improving cash flow, business credit cards may also let you earn rewards on all your expenses. Whether it’s cash back that could help offset everyday purchases or travel rewards that can enhance your business trips, credit cards with rewards incentivize your spending.

From choosing the right rewards to getting the most value, here’s what to know about business credit card rewards.

What you’ll learn:

• Business credit cards with rewards can help you optimize your spending when you use your card on eligible purchases.

• Business credit card rewards programs typically allow you to earn cash back, miles or points at a flat rate or within different tiered categories.

• The best business credit card rewards program should complement your spending and let you maximize the value of your rewards.

Business credit cards with rewards can help you earn cash back, miles or points each time you make a purchase. You can earn rewards on everyday business purchases and essentials, including travel. As your rewards accrue, you may be able to redeem them as statement credits or gift cards or put them toward travel expenses.

Business card rewards are either a flat-rate or tiered program. With flat-rate rewards, you earn the same amount no matter what you’re purchasing. But with a tiered rewards program, you earn different amounts for different bonus categories. For example, the Capital One Venture X Business card offers benefits like 10X miles on hotels and rental cars, 5X miles on flights and vacation rentals and 2X miles on all other purchases.

In general, there are three types of business card rewards:

• Cash back rewards: With a cash back business card, you earn back a percentage of each purchase. For example, with the Capital One Spark Cash Plus card, you earn unlimited 2% cash back for your business on every purchase—with no preset spending limit¹ or category restrictions and no expiration date for the life of the account. You can redeem cash back as a statement credit to lower your balance. Or, depending on the credit card company, you can cash out rewards via check or bank deposit.

• Travel rewards: Some business credit cards earn miles for each dollar spent—not just for what you spend on business travel. So what you purchase for your business can contribute directly to eligible travel expenses, like airfare, hotel bookings or rental cars. Many business credit cards also allow you to transfer miles to certain airlines or hotel loyalty programs.

• Points: Rewards points are credits you earn for each qualifying dollar spent on your business credit card. You can redeem them for discounts on eligible expenses, such as meals, fuel or office supplies.

Keep in mind that the types of rewards you can earn, as well as how and when you earn and redeem them, depend on the terms and conditions of your credit card.

The best business credit card rewards program for your company usually depends on your business spending habits. In other words, the vendors you rely on and how much you spend between billing cycles can help determine which business rewards credit card suits your needs.

If you’re unsure which reward type is right for your business needs, use the following steps:

Some business rewards credit cards have an annual fee. Cards with higher fees typically offer better rewards and benefits—but you can still earn rewards with some business cards that don’t have an annual fee.

If you don’t mind paying an annual fee, consider a card that comes with benefits that can help offset the fee.

Let’s take a look at Capital One Spark Miles (which has an annual fee) and Spark Cash Select (which doesn’t). By doing this, you can compare the differences in benefits between the two cards. 

• Spark Miles: After a $0 introductory annual fee for the first year, the annual fee increases to $95. Cardholders earn unlimited 2X miles on every purchase. And you’ll enjoy elevated travel benefits, like a $120 credit for Global Entry or TSA PreCheck®.^*

• Spark Cash Select: While there’s no annual fee for Spark Cash Select, cardholders still enjoy rewards like unlimited 1.5% cash back on business purchases. 

To take full advantage of the rewards your credit card offers, consider the difference between flat-rate and tiered rewards programs: 

• Flat rate: You earn rewards at one fixed rate. So if you have a card with 1.5% cash back, you’ll get $1.50 back for a $100 purchase, regardless of the type of purchase.

• Tiered: You earn rewards at a variable rate, depending on the type of purchase. So you may earn 1.5% cash back on gas but 2.5% cash back on office supplies because that falls into a different spending category.

Consider your company’s spending habits. If your spending falls into common categories, a tiered program may be best. If you spend across multiple categories, a flat-rate program could put more money back in your pocket.

If you travel frequently, you’ll likely get the most value out of a travel rewards business card. Many travel rewards programs incentivize travel-related spending, so you could earn and redeem miles at a higher rate for travel compared to other redemption options. Travel rewards cards often offer additional perks for business travel too, like airport lounge access.

Even if you don’t travel often now, you may still earn miles for everyday purchases. So if you see more frequent travel in your business’s future, a travel rewards card could be a good choice.

Business cash back rewards are generally easier to redeem for purchases. If you’d prefer to use rewards to offset expenses, keep your credit card balance low or reinvest in your business, a business cash back rewards card could be for you. And unlike with points and miles, there’s usually no need to calculate how much your cash rewards are worth.

Regardless of the reward type, there are other aspects to consider when creating a rewards and spending strategy. To maximize your business credit card rewards, consider the following:

Business credit cards sometimes offer an introductory rewards bonus to entice new customers. For example, Capital One business cards often have special offers, like one-time cash bonuses or bonus miles when you spend a certain amount within the first months of opening your card.

Consider what rewards, such as cash back or travel rewards, will have the biggest impact on your business spending. For example, fixed cash back percentages can help you save on large expenses, while the ability to redeem miles may be best if business travel is a priority for your company.

Cash back, miles and points aren’t the only benefits a business card offers. Some provide perks like access to exclusive events and premium travel lounges as well as extended warranty protection. For example, the Capital One Venture X Business card offers a $300 travel credit, complimentary access to Capital One and Priority Pass™ airport lounges, and up to $120 toward Global Entry or TSA PreCheck®.

Capital One offers a range of rewards cards that meet the needs of your business. Explore options that focus on cash back, travel rewards, high spending and more.

As a Capital One business cardholder, you also have access to additional benefits, such as:

• Free employee cards

• Extended warranty protection

• No foreign exchange fees

• Pre-negotiated discounts on business essentials

Learn more about business credit card rewards with the answers to these frequently asked questions.

Choosing the right business rewards credit card could help you earn valuable rewards that can reduce overall costs. Whether you travel frequently or have miscellaneous expenses, how you spend and redeem rewards may influence the program you choose.

If you’re ready to start getting rewarded for the purchases you make for your company, compare Capital One business cards today. You can even see if you’re pre-approved, with no impact on your personal credit score.