|Highlights||Credit Card Feature|
|Things We Like||Signing bonus of $200|
|Our Least Favorite||3% foreign transaction fee|
|Our Verdict||Great card for 3% cash back on gas purchases|
Bank of America® Cash Rewards for Business MasterCard® credit card is a cash back credit card for businesses issued by Bank of America, which is one of the largest U.S. banks. This card has no annual fee and can help your business save by earning cash back in purchase categories that make sense for most businesses. It also comes with zero liability protection for unauthorized transactions, a security benefit that many other business cards do not provide. But those are really just a few of the ways this credit card can help your business, and if you are trying to pick a good credit card for your business, then this Bank of America® Cash Rewards for Business MasterCard® credit card review will come in handy as we tell you all its benefits and what to look out for. We'll also reveal how it stands up against other business credit cards in the same category.
Things We Like About Bank of America® Cash Rewards for Business MasterCard® credit card
You get a bonus offer. After you use your new card to make $500 in purchases within 60 days of account opening, you can earn a $200 statement credit. Spending $500 on purchases in 60 days is pretty easy for most businesses, so this offer can give your cash back a nice boost.
You don't pay an annual fee to use this card. One of the biggest perks of this card is that it has no annual fee. Most business cards which offer anywhere near the rate of cash back and the benefits you get with this card have a pretty high price tag.
Enjoy 0% intro APR on purchases during the first 9 billing cycles. Here's another perk that can save you a lot of money. This card has 0% intro APR on purchases for the first 9 billing cycles, so if you need capital to start your business, you can pretty much enjoy an interest free loan for that amount of time. Just make sure to pay off your balance in full by the end of the introductory APR period. After the intro period a standard 11.74% - 21.74% variable APR will apply to purchases and any balance transfers.
You earn cash back on at gas stations and office supply stores. Using this card to pay at gas stations and office supply stores is a good idea. You earn 3% cash back on purchases made at gas stations and office supply stores, up to $250,000 in combined gas station and office supply store purchases annually, with a 1% earn rate after that. The $250,000 annual cap on combined purchases in these 3% cash back categories is one of the most generous caps we've seen on business credit cards, and should easily accommodate most small businesses.
You earn 2% on purchases at restaurants. If you or your employees regularly eat out in the course of business, the 2% cash back for purchase at restaurants will help you earn cash back fast. This category includes restaurants, quick service restaurants (also know as fast food outlets), taverns, lounges, bars and discos, so no matter where you, your customers, or your employees like eat, you will probably earn this cash back. Just note that you will not earn this 2% cash back at merchants classified as coffee shops, bakeries, grocery stores, and other food stores which happen to operate a restaurant inside their premises.
You earn 1% cash back on other purchases. That means every new net purchase you make using this card earns 1% cash back. Returns, transaction fees and adjustments don't qualify as new net purchases.
Your money is protected. This card comes with zero liability protection for unauthorized transactions, which means that your business won't be held liable to pay for unauthorized transactions made using a stolen card, for example. This card goes a step further and gives you additional protection against misuse by terminated employees.
You get Purchase Protection for things you buy using this card. When you charge purchases to this card, most purchases will be covered against loss, damage, theft, or fire.
You get fraud monitoring for better security. Bank of America monitors card transactions, and if an abnormal patter is detected, blocks potential fraud and informs you of suspected fraudulent activity.
Optional overdraft protection. Overdrafts can get expensive, which makes this optional service a nice perk for many businesses. When you link your Bank of America® Cash Rewards for Business MasterCard® credit card account to a Bank of America business checking account, this optional service can help prevent returned checks, declined purchases and other overdrafts by automatically transferring money in $100 multiples from your credit card to your checking account to cover overdrafts. You pay an overdraft protection fee of either $10 or 3% of the amount of each transaction, whichever is greater.
You get $100,000 in travel accident insurance. When you use this card to pay for your travel bookings, you will be protected with up to $100,000 of travel accident insurance coverage. This perk can also save you money since you won't need to buy the optional travel accident insurance policies offered by airlines. You also get auto rental insurance, emergency ticket replacement, lost–luggage assistance, and you have the option of getting extended protection.
You get cash flow management tools which make running your business less complicated. Online services let you download transactions into Quickbooks, make automatic payments and transfers, and track all of these transaction using the MyReport Center. You get 24/7 mobile and online access to manage your account using secure online and mobile banking. You can use this access to keep tabs on all your account activity (including employee transactions), and check your balance at any time.
You can apply your cash rewards directly to a Bank of America® savings or checking account. You have the choice of redeem your cash rewards for cash back, or applying them to a Bank of America® checking or savings account. The option of redeeming cash rewards directly into a Bank of America account makes the whole process of redeeming cash back a lot less complicated. Cash rewards can be redeemed starting from $25.
If you travel outside of the U.S. on business (to Canada, for example), having a Bank of America® checking or savings account makes even more sense because Bank of America is part of the Global ATM Alliance. That means when you use your ATM or debit card to withdraw money at ATMs operated by Global Network Alliance member banks, you can avoid the $5 non-Bank of America ATM usage fee you would normally pay for each withdrawal, balance inquiry or transfer you make. The following banks are Global ATM Alliance partners:
- Scotiabank (besides Canada, this bank has ATMs in Puerto Rico, Peru, Chile, The Bahamas, Dominican Republic, Barbados, British Virgin Islands, Anguilla, Antigua & Barbuda, Cayman Islands, Dominica, Grenada, Jamaica, St. Maarten, St. Vincent & The Grenadines, Trinidad & Tobago, Saint Kitts & Nevis, Saint Lucia, Turks & Caicos Islands, and the U.S. Virgin Islands)
- Banco Santander (Mexico)
- Barclays United Kingdom (operates ATMs in England and Wales, Scotland, Northern Ireland, the Channel Islands, Jersey, and Guernsey)
- China Construction Bank (Mainland China, excluding Hong Kong)
- Deutsche Bank (in Germany and Spain)
- BNP Paribas (France)
- BNL D'Italia (Italy)
- Westpac Bank (Australia and New Zealand)
- ABSA (South Africa)
- UkrSibbank (Ukraine)
- TEB (Turkey)
Bank of America will still assess an international transaction fee equal to 3% of the converted U.S. dollar amount. But $5 savings per withdrawal is still a big plus.
No penalty APR. If something goes terribly wrong and you don't manage to make your minimum payment by the due date, your APR won't be bumped up to a penalty APR. Most other cards would slap a hefty markup onto your APR (typically around 30%) which can kill you financially if you carry a large balance. So this feature gives you a lot of peace of mind. Still, you should always make your payments on time to maintain a good credit score.
Our Least Favorite Things About Bank of America® Cash Rewards for Business MasterCard® credit card
You pay a foreign transaction fee. This card has an international transaction fee equal to 3% of the U.S. dollar amount of each transaction you make in a foreign currency. When you travel outside of the U.S. on business, you could save money by using a credit card with no foreign transaction fee.
How Other Cards Compare With Bank of America® Cash Rewards for Business MasterCard® credit card
SimplyCash® Plus Business Credit Card from American Express, a GET.com advertiser, has a special offer that lets you earn $200 statement credit after spending $5,000 or more on qualifying purchases using your Card within your first 6 months of Card Membership as well as $200 statement credit after you spend an additional $10,000 or more in qualifying purchases on your Card within the first year of Card Membership. That's a much higher offer than what Bank of America® Cash Rewards for Business MasterCard® credit card gives you, but the spending requirement to get that bonus is also a lot higher. This card gives you 5% cash back at U.S. office supply stores, and on wireless telephone services which you purchase directly from U.S. service providers. The best feature of this card, in our opinion, is that you get 3% cash back on the category of your choice from a list of select categories (these include U.S gas stations, U.S. restaurants, U.S. purchases for advertising in select media, U.S. purchases for shipping, airfare purchased directly from airlines, hotel rooms purchased directly from hotels, and car rentals purchased from select car rental companies). You earn 1% cash back on other purchases and the cash back you earn is automatically credited to your statement. All in all this is a pretty sweet cash back card, but there is a catch: 5% and 3% only apply to purchases up to $25,000 per rebate year. Once you hit that cap you will earn 1% on additional purchases you make in those categories for the remainder of that rebate year. That makes this an ideal card for small businesses with expenses averaging $25,000 in the cash back categories. However, if your annual spending at gas stations and office supply stores is a lot higher than that, then Bank of America® Cash Rewards for Business MasterCard® credit card would be a much better choice because you earn 3% cash back on purchases made at gas stations and office supply stores, up to an annual cap of $250,000 on combined gas station and office supply store purchases, then 1% earn rate after that. This American Express card has 0% intro APR on purchases for 9 months (12.74% - 19.74% variable APR after), which is similar to what you get with Bank of America® Cash Rewards for Business MasterCard® credit card.
Capital One® Spark® Cash for Business has an amazing bonus offer (a one-time $500 cash bonus after you spend $4,500 on purchases within 3 months of approval) but the spending requirement to get that bonus is a fair bit higher than that of the Bank of America® Cash Rewards for Business MasterCard® credit card bonus offer. This flexible cash back credit card for business lets you earn 2% cash back on every purchase you charge to it. That makes it a smart choice of card if you prefer to earn a decent rate of cash back on all your business purchases, without being limited to certain categories. You can redeem cash rewards anytime, for any amount and even set up automatic redemption. With Bank of America® Cash Rewards for Business MasterCard® credit card, on the other hand, you have to collect at least $25 before you can redeem. Another major benefit of this card is that it has no foreign transaction fee (whereas Bank of America® Cash Rewards for Business MasterCard® credit card has an an international transaction fee equal to 3% of the converted U.S. dollar amount. So if you make a lot of business trips outside of the U.S., this card can save you money every time you pay. But Capital One® Spark® Cash for Business has no introductory low APR offer, and you pay a $0 intro annual fee for the first year, $59 after that, while Bank of America® Cash Rewards for Business MasterCard® credit card has no annual fee and a 0% intro APR on purchases for the first 9 billing cycles (with 11.74% - 21.74% variable APR after that).
Bank of America® Cash Rewards for Business MasterCard® credit card can be a very rewarding cash back card to use if you make a lot of purchases at office supply stores, gas stations and restaurants, especially for businesses with a bigger budget.
Bank of America® Cash Rewards for Business MasterCard® credit card is a powerful cash back tool that can potentially save your business a lot of money. While there are other credit cards available which offer higher rates of cash back in similar categories, the high cap on purchases in 3% cash back categories makes this card a winner for businesses with higher spending. Businesses looking to grow in the future should also pay attention to the high cash back limits. But even if cash back isn't your focus, this benefits offered by this card compare well to what you get with other cards. If you use Quickbooks for your accounting, the option to download transactions directly into that format will save you time (and time is money). We highly recommend Bank of America® Cash Rewards for Business MasterCard® credit card to small business owners looking for tangible cash back savings and useful benefits at no annual fee.
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