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Business credit card rewards programs may help support how a business manages company spending, but for some, they could seem too complex to track or optimize. A cash back business credit card may offer a more straightforward, more predictable way to earn rewards.
Understanding how business cash back programs work may help your business choose the right rewards strategy for your business spending.
What Is Cash Back and How Does It Work?
Cash back is a reward your business may earn from eligible spending, including as a statement credit, gift card, or deposit into a bank account. Some rewards may only be redeemed after you reach a minimum amount, while others can be used as you earn them. They may also be issued at set times, such as monthly or quarterly.
Depending on the business cash back program, rewards could fall into two categories:
- Flat rate: You may earn the same cash back amount on all eligible purchases, potentially making it easier to track earnings.
- Category-based: You may earn different cash back percentages based on your spending in specific categories. For example, you may receive higher cash back on business expenses like advertising services, but you may receive a lower rate for transportation charges.
Why Might Cash Back Be More Predictable Than Other Rewards Programs?
Business cash back programs may offer more predictability compared to points or travel rewards cards. If you have a flat-rate cash back business credit card, it may be possible to estimate how much cash back may be earned based on your planned purchases and expenses.
For example, if you spend $300,000 in qualifying annual business expenses and your credit card earns 2% cash back, you could earn $6,000 in rewards each year. Even if you have a credit card with category-based earnings, it may still be possible to estimate potential cash back earnings based on everyday business expenses.
Cash back rewards may also help simplify reporting, as these credits could appear directly on your statements, which may help make these transactions easier to reconcile.
Cash back programs may be particularly relevant for businesses that:
- Have consistent, high-volume operating expenses
- Prefer straightforward, easy-to-track rewards
- Want a predictable way to offset costs rather than manage variable redemption options
How You Can Get More Value From Your Business Spending
One reward strategy for business spending may be to use a credit card with business cash back programs that offer higher earnings for categories your business regularly uses. For example, if your business spends the most on business travel and office supplies, you may want to choose a card that offers higher cash back in these categories. If there is more than one credit card that offers higher cash back on your top spending categories, you may consider using certain credit cards based on specific cash back offerings.
Business cash back programs may offer more predictability compared to points or travel rewards cards.
If your business spending is evenly distributed across a number of categories, it may be helpful to consider a flat rate business cash back program. This could help streamline your cash back strategy and support ongoing management.
What to Look For When Choosing a Cash Back Business Credit Card
When doing a cash back business credit card comparison, it may be helpful to review more than the cash back rate earned. Consider also reviewing:
Annual Fee
Premium cash back business credit cards may come with annual fees. These cards may also offer benefits like travel insurance and partnerships with retailers in addition to the cash back program.
Spending Limits
Some cash back programs that offer higher rates on specific spend categories may set a limit on how much a business may earn within a quarter or on an annual basis. Under this scenario, a business might earn a higher cash back rate on certain categories up to the limit and then the regular rate on any additional spending.
For example, a credit card may offer 5% cash back on purchases at office supply stores, up to $6,000 per year, then 1% after that amount. If a business spends $10,000 on office supplies each year, it may be helpful to calculate the cash back on actual spend to compare it to other offerings.
Redemption Options and Minimums
Although some business cash back programs distribute rewards as credit statements, others may offer additional options like gift cards and cash deposits. Some rewards programs may also require a business to have a minimum balance before redeeming cash back, while others may offer redemptions each statement period.
Employee Card Management and Controls
The ability to issue and manage employee credit cards in real time may be beneficial. It may be helpful to evaluate features that offer the tools you want without adding more tasks to your plate. Credit cards that may integrate with your business's expense management platform or enterprise software could help reduce the time spent on reconciliation.
Aligning Your Rewards Strategy to Your Financial Goals
Business cash back programs may be used to help support financial goals. Part of the appeal of leveraging cash back programs is that they may be more straightforward to track, since a business may earn a percentage based on spending that could help offset business costs.
Understanding your top spending categories and potential cash back rewards may help inform decisions about which cash back business credit card fits your strategy.
Consider the American Express® Corporate Program
With the American Express® Corporate Card Program, you can customize a program that is right for your business from a selection of powerful solutions, with the backing of American Express. Choose only what you need from our selection of Cards and digital tools to help you operate efficiently. Select from the Membership Rewards® program1 and or the Corporate CashBack® Program2 to get rewarded in a way that works for your business. Add expense management and AP automation solutions that work with each other and your existing programs. Receive support from an onboarding team dedicated to helping you get started.
The material made available for you on this website is for informational purposes only and is not intended to provide legal, tax or financial advice. If you have questions, please consult your own professional legal, tax and financial advisors.
Additional Disclosures
1 Enrollment in the Corporate Membership Rewards program is required. Only the American Express® Corporate Green Card, American Express® Corporate Gold Card, and American Express Corporate Platinum Card® are eligible to enroll in the Corporate Membership Rewards program. The Program Administrator is charged a $90 annual enrollment fee for each enrolled Corporate Green Card. A program fee is not applied for the Corporate Gold Card and Corporate Platinum Card®. Get one Corporate Membership Rewards point for every dollar of eligible purchases charged on enrolled American Express® Corporate Cards. Eligible purchases are purchases for goods and services minus returns and other credits. Eligible purchases do NOT include fees or interest charges, cash advances, purchases of travelers checks, purchases or reloading of prepaid cards, or purchases of other cash equivalents. If the Corporate Card Member is transferring from an existing Membership Rewards program to the Corporate Membership Rewards program, the Card Member will have 30 days to use any existing Membership Rewards points before they are forfeited.
The redemption value of Corporate Membership Rewards points varies according to how you choose to use them.
For the full terms and conditions for the Corporate Membership Rewards® program please visit americanexpress.com/corporatemrterms for more information. Participating Corporate Membership Rewards partners, available rewards, and point levels are subject to change without notice.
2 With the American Express Corporate CashBack® Program, companies can earn one percent (1%) cash back on eligible purchases made with the Corporate Green Card earning Corporate CashBack. The cash back is issued in the form of a monthly statement credit to the company’s centrally billed account. To earn the one percent (1%) statement credit, American Express must receive and post full payment for all of the transactions included on the company’s billing statement prior to your next statement date. Company will not receive a statement credit if the Card account is cancelled or in default. The annual fee(s) for each Corporate Green Card earning Corporate CashBack include (i) an annual membership fee of up to $75 and (ii) an annual program fee of $90, which will be billed to the Card account.
The Corporate CashBack Program must be requested by the Company and is subject to American Express approval. The following transactions are not eligible purchases and will not earn the cash back statement credit: purchases of American Express® Travelers Cheques or American Express® Gift Cheques; foreign currency purchases and any related fees; convenience check transactions; purchases and reloads of prepaid cards; Card account fees and charges (including but not limited to late payment fees, Card account annual fees, interest charges and delinquency charges); fees for Card Member services enrolled in by the Company and/or the Card Member.
