Balance Annual Fees of Business Credit Cards With Cash Back Option

Cash back options vary from the over-hyped to the truly useful. Today most cash back credit cards have an annual fee attached though most major banks will waive that fee for the first year the card is in use.

Small business owners have to buy supplies and have to pay fees for keeping a sales force on the road or advertising. Cash back cards allow businesses to buy what they need and save real money on those purchases.

As a business owner, you develop relationships with your regular providers. You may buy all of your shipping materials from one supplier and also have various suppliers providing you with stock for your store.

It’s common for suppliers to provide a percentage discount for immediate payment and there are times when you might be offered a great deal on supplies if you can “buy it now”.

The ability to pay now is why you use credit cards with cash back options can add even more savings to those special deals from your suppliers.

Best Cash Back Cards

One of the most popular credit cards for small businesses is the Plum Card from American Express. This account is designed to fill the needs of businesses with loads of extra features that make managing the financial area of your business easier.

The Plum Card is considered a charge card rather than a credit card as the amount spent is due and payable each month. With the Plum Card you decide if you want to pay your credit account in full each month and receive a discount for doing so or if you need to defer a card payment.

The goal with this account is to provide the flexibility in payment that small businesses often need to properly manage their cash flow.

There is no annual fee during the first year but a rather high fee of $185 is added to the Plum Card in successive years. If you pay in full within 10 days of the date on your closing statement, you receive a 1.5% discount of all money charged to your card that month. The more your business charges each month, the high the savings.

The percentage is applied as a credit to your account and will show on the next month’s statement. Though this account is to be paid in full monthly, there is an option to defer payment without interest.

If you pay 10% of this month’s charges and all previous payments have been made in full, you can defer 90% of the amount to the following month’s statement.

This provides a full two months to pay for a large inventory order or unexpected expense. It is this flexibility that has made the Plum Card from American Express one of the most popular cash back cards for business owners.

Chase Ink Cash Business is another good card for small businesses. This account offers 3% cash back on eligible purchases such as home improvement, office supplies and fuel and 1% cash back on all other eligible charges. There is no annual fee and a special 0% introductory APR for 6 months for new accounts.

CapitalOne has made inroads in business credit cards with the Capital One Business Platinum with No Hassle Cash accounts. With a 0% introductory APR until October 2011 and no annual fee, this credit card provides a straight 1% cash back on all purchases.

You can get the cash back when you want and there are no caps or expiration dates attached which is a big incentive for small business owners. You can also choose to upload your own business logo to appear on the credit cards you use.

Disadvantages are Minimal

If you are seeking a business card with cash back you will need to have a business where credit has been established. Start up businesses with no credit rating in the business name will not qualify for business credit cards with cash back options and may not be able to qualify for any business credit card.

It may be necessary for new businesses to have the owner guarantee payment with his personal credit. This is not optimal and should be done only until the business has established its own credit file in the business name.


There is a wide variety of choices today for credit cards with cash back option that can be earned with regular purchases on the account. Compare the offers carefully and check the credit rating of your business to be certain you will qualify to be approved for the offer you choose.