Get All Access for $5/mo

Business Credit Cards Kick Up Rewards To entice more users, small business credit cards have become even more rewarding.

By Diana Ransom

Opinions expressed by Entrepreneur contributors are their own.

Business Credit Cards Kick Up RewardsUsing business credit cards isn't just a good way to keep your personal and your business finances separate, it might also be extra rewarding.

As the market for consumer credit heats up, and zero percent teaser rates have returned, issuers are stepping up their game for small business cardholders as well. Credit card issuers are taking more of a "carrot" approach to enticing new cardholders -- offering enhanced rewards and introductory offers.

American Express today announced its new Business Gold Rewards Card, a charge card that offers two rewards points for online advertising, gas and shipping spending up to $100,000 per calendar year per category. The card, which is expected to launch on Monday, also offers three points on airfare purchases and waives the $175 annual fee for the first year. Previous iterations of the card offered just one point per dollar spent. In June, AmEx started allowing users to redeem their Membership Rewards points toward the purchase advertisements on Facebook.

Just yesterday, Capital One launched a small business card that offers 2 percent cash back on every purchase. The card, which is called Business No Hassle Cash Premier, has a 13.9 percent variable annual percentage rate and a $59 fee that's waived in the first year. Although there's no cap on the amount of amount of rewards you can earn on purchases, note that to receive cash back more frequently than once a year, you need to set up a redemption schedule. And though the rewards never expire, if you close your account, your accrued rewards will vanish.

Capital One also launched an interest-bearing small-business card called Clear Interest Business Checking in July. That card offers one year of interest at varying levels depending on where a business is based.

"What we've had is a freeing up of credit in terms of limits and account access," says Curtis Arnold, the founder of credit education web site CardRatings.com. "There are dark clouds on the horizon, but if I'm looking from a small business owner's standpoint, I would jump at the opportunity to apply for a business card, provided the offer is good and the interest rate is average."

But business owners should still be skeptical of these cards. For months, small-business and consumer advocates have been angling for business cardholders to receive the same protections that consumers receive under last year's landmark credit card law. Though, their efforts haven't yet panned out. The concern is that business cardholders who don't get these protections might fall victim to predatory credit offers, hiking rates on past purchases, shifting payment dates or charging over-limit fees.

Shortly after the law passed, a number of banks including Bank of America, Capital One and Chase passed along select consumer protections to their business cardholders. Those moves were seen as efforts to stave off a large scale defection from business cards to consumer cards. Although consumer advocates say that consumer cards are still the better of the two credit genres because there's no way to guarantee that banks won't simply change their business card policies down the road.

What sweetened small-business rewards have you spotted recently? Leave a comment and let us know.

Diana Ransom is the former deputy editor of Entrepreneur.com.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Marketing

Patagonia and Oatly Just Used This Clever Tactic for Better Brand Visibility — Here's How You Can Replicate It

Even small and medium-sized companies can effectively leverage the same PR strategy that big brands use to earn significant media coverage and audience engagement, despite limited resources.

Side Hustle

This Former Disney Princess Lived 'Paycheck to Paycheck' Before Starting a Side Hustle at Home — Now She Makes $250,000 a Year

Victoria Carroll's income was "sporadic" until a friend encouraged her to take her talents to Fiverr in 2018.

Business News

'This Is the Final Straw': Elon Musk Says He's Moving X, SpaceX to Texas

Both companies are currently headquartered in California.

Business News

Taylor Swift Revealed the Surprising Way She Prepares Her Mind and Body for Big Moments

If you've got big plans and big dreams, Swift's approach can be the game-changer.

Leadership

He Didn't Want to Lead His $1 Billion Business the Same Way Anymore — Here's How the High-Stakes Switch-Up Paid Off

Advait Shinde, co-founder and former CEO of educational software company GoGuardian, was ready for a change. So was former COO of LegalZoom Rich Preece.