Should you get a business cash back credit card?

A cash back business credit card can be a good choice for companies that regularly spend on everyday business expenses. You can earn a percentage back on purchases like equipment, office supplies and utilities, giving you extra funds to reinvest in your business.

Learn more about how a cash back card can support your business’s financial goals and opportunities for growth.

Cash back business credit cards are designed for business spending and let you earn a percentage of cash back on eligible purchases. There are two main types of cash back business credit cards:

• Fixed or flat rate: Cards that offer a consistent percentage of cash back on eligible purchases
• Tiered or rotating: Cards that offer a higher percentage of cash back on purchases in specific spending categories, which may rotate monthly or quarterly

Cash back rewards usually accumulate and can be redeemed as a statement credit, reducing your overall balance. However, some cards or issuers may allow you to redeem rewards for gift cards or even cash them out via check.

Cash back business credit cards work by returning a percentage of your eligible spending as cash back, making their rewards programs more straightforward than points or miles.

The amount you earn will depend on the card’s rewards structure—whether it offers a flat rate on all purchases or more cash back in specific spending categories. As you spend with the card, your rewards accumulate and can be redeemed based on the card’s terms. For example, Spark Cash Plus offers unlimited 2% cash back on every purchase.

You earn cash back rewards on each qualifying purchase you make with your business credit card, similar to a rebate. The amount you earn can vary depending on the type of purchase.

For example, suppose your card offers a flat 2% cash back rate on all purchases. If you spend $100,000 per month on business expenses, you could earn $24,000 in cash back by the end of the year.

If your card offers tiered rewards, you’ll earn higher cash back rates on certain purchases. Examples may include 5% cash back on fuel, 2% cash back on dining and 1% cash back on everything else. Cards with tiered rewards may also have additional conditions, such as caps on how much cash back you can earn or redeem at once.

Depending on your business credit card, you can redeem cash back rewards in several ways, including:

• Statement credits to reduce your account balance
• Gift cards
• Specific product discounts
• Direct deposit

Your cash back business credit card may also automatically apply rewards to your balance, so you don’t need to redeem them manually.

While cash back rewards typically accumulate as you spend, they may not always be available to redeem right away—you may need to meet a minimum redemption threshold or wait for your statement to post.

Choosing the best cash back business credit card for your company depends on your spending, eligibility, and the card’s terms, features and benefits. So the highest cash back rate may not always be the best option. To find the right fit, consider how the rewards align with your business’s purchasing needs.

Many cash back business credit cards include features that can help you manage expenses and keep business and personal purchases separate—on top of earning cash back rewards. When looking to pick out a card:

• Consider where you spend the most. If you spend a lot in one category, like fuel, then a card offering bonus cash back on gas station purchases may lead to more savings. Or if your spending is more varied, a flat-rate cash back business card may be a better fit.
• Understand eligibility requirements. Credit card companies typically evaluate both your personal and business credit histories and credit scores to determine eligibility for a business credit card. Credit score requirements can vary by card, and some cards may require at least a good credit score to get approved.
• Pay attention to card terms and conditions. Business cards with the highest cash back rates may have annual fees, higher annual percentage rates (APRs) or cash back earning limits. There may also be limitations on how you redeem cash back rewards. 
• Review features and benefits. Look for a card that offers benefits aligned with your business’s needs. Maybe you’re looking for free employee cards or tools that integrate with your accounts payable process. Along with cash back rewards, consider which features would be most beneficial in supporting your daily operations.

Consider creating a checklist of what you want from a business credit card, such as bonus categories, an introductory APR, a low annual fee or cash back rewards applied automatically to your account. Once you determine your needs, finding a card that fits your business will be easier.

To make the most of your cash back business credit card, manage spending responsibly, understand how your card works and look for ways to maximize your rewards:

• Take advantage of additional benefits. Look for cash back business credit cards with promotional partnerships or bonus offers—such as rewards for dining, hotels or supply stores where you already spend regularly—to earn extra cash back rewards or additional discounts. 
• Set employee spending limits. Setting spending limits on cash back cards can help ensure a manageable balance, even when you have multiple authorized employees using your business credit account.
• Make responsible payments. Strive to pay off your card balance each month, which can also help build your business score over time. If you’re going to be making larger purchases, consider a business card with a low introductory APR so you have time to pay off the balance before the introductory period ends.
• Get to know your card. Keep track of your business purchases and understand your card’s available benefits and reward rates. Cash back cards can offer flexibility to support a variety of business needs.

Here are answers to some frequently asked questions to help you choose the right cash back business credit card for your company.

A cash back business credit card could be a good choice for your business if you’re looking for a way to manage your budget and cover expenses while earning straightforward, flexible rewards. Do your research and choose the rewards card that best aligns with your business’s spending habits and financial goals.

With Capital One Business, you can enjoy business-grade benefits, from fraud liability and simplified budgeting to free employee cards. If you’re ready to start earning rewards for your business expenses, browse Capital One Business cash back business credit cards to see which one is right for you. You can even see if you’re pre-approved first, with no impact on your personal credit score.