Oct 23, 2019

Business Cash Back Credit Card Comparison

Lendio sometimes receives compensation for credit card offers. This compensation may impact how products appear on this site (including, for example, the order in which they appear.) Lendio does not include all card companies or all card offers available in the marketplace. This editorial is from the viewpoint of Lendio, and not endorsed by any 3rd party. The information is accurate at the time of publication.

 

Credit cards can be a huge advantage to a business. They’re even more advantageous when they earn you cash you can invest directly back into your company. There are many business cash cards out there, and different cards offer different earning potential, so it’s important to find one that aligns with your spending to maximize cash back. 

To make the decision of selecting a business cash back credit card easier, we will compare 2 popular cash back card options, The Blue Business Cash Card by American Express and The Business Advantage Cash Rewards Mastercard Credit Card by Bank of America.       

APR 

AMEX: The Blue Business Cash Card has a lenient 0.0% intro APR on purchases and balance transfers for 12 months, then a variable rate of 14.99% to 20.99%, based on your creditworthiness and other factors as determined at the time of account opening.

BOA: The Business Advantage Cash Rewards Card offers a variable purchase APR ranging from 13.99% to 23.99%. In addition, the APR on purchases during your first 9 billing cycles is 0.0%. 

APR Winner: The Blue Business Cash Card. While the Business Advantage Card by Bank of America has the lowest possible APR, very rarely do cardholders qualify for the minimum. The Blue Business Cash Card offers a lower maximum variable rate and a longer 0.0% intro APR by 3 months.

Cash Back

AMEX: The Blue Business Cash Card offers a consistent 2% cash back on up to $50,000 of spending on all purchases. After you reach the $50,000 cap, all earning is 1%.

BOA: The Business Advantage Cash Rewards Card allows you to select 1 from the following 6 categories for a 3% cash back reward: gas stations, office supply stores, travel, TV/telecom & wireless, computer services, or business consulting services. Bank of America allows you to change your bonus category once per calendar month. Outside of 3% cash back for your selected category, you will receive 2% on dining and 1% on all other purchases. 

Cash back Winner: Draw. This category is a toss-up. Much of the advantage depends on whether or not the majority of your business spending aligns with an available 3% earning category from Bank of America. If you spend a considerable amount in one of the available categories, your potential rewards are higher than with the Blue Business Cash Card by American Express. However, if the bulk of your spending doesn’t align with Bank of America’s 6 available categories, The Blue Business Cash Card would be the best option because of the consistent 2% cash back on all purchases. 

Signup Bonus

AMEX: American Express, while known for typically offering excellent signup bonuses with their cards, doesn’t offer a signup bonus for their Blue Business Cash Card.

BOA: Bank of America gives a $300 statement credit when you make at least $3,000 in net purchases within 90 days of opening your Business Advantage Cash Rewards Card.

Signup Bonus Winner: The Business Advantage Cash Rewards Card. The complete lack of a signup bonus from The Blue Business Card makes The Business Advantage card an easy winner in this category. Bank of America’s offering of $300 as a signup bonus is considerable. You would have to spend an extra $15,000 on purchases with The Blue Business Card  to make up the difference for missing out on the $300 bonus Bank of America provides.  

Cash Rewards Card Champion

This is a tough comparison as neither card is objectively better than the other. So much depends on the individual cardholder’s spending habits. For the majority of businesses, our cash rewards champion is The Blue Business Cash Card by American Express. The unwavering 2% earnings on every single purchase fit the general spending of businesses the best. 

This win comes with the caveat that if your business does a lot of their spending in one of the available 3% earning categories from Bank of America, The Business Advantage Cash Rewards Card would be the smartest option for you. 

When making the decision, make sure to evaluate what categories your expenses fit under, then make an informed decision on which cash back card is best for your business.  

 

Lendio sometimes receives compensation for credit card offers. This compensation may impact how products appear on this site (including, for example, the order in which they appear.) Lendio does not include all card companies or all card offers available in the marketplace. This editorial is from the viewpoint of Lendio, and not endorsed by any 3rd party. The information is accurate at the time of publication.

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