Tips for Small Business Owners Shopping for a Rewards Card from the Experts | WalletHub

Professor Vallari Chandna was featured in WalletHub’s recent article about business credit cards with rewards. Here is what she said on the topic:

What tips do you have for small business owners who are shopping for a rewards card?

A good rewards credit card is quite useful for small business owners but choosing the best one, depends on multiple factors, and thus becomes something that can differ on a case-to-case basis. Here are some factors to consider as a small business owner:

• Consider where your business spends the most money: Do you travel frequently? Have significant expenses in office supplies or advertising? Knowing your biggest spending categories will help you identify cards that offer the most valuable rewards for you.
• Consider Different Reward Structures: Think about which would benefit your business most: (1) Cash Back: This can be great for general use and increasing cash flow; (2) Travel Points/Miles: If the airline or hotel partnerships and redemption options align with your preferred travel providers, this is a great choice; (3) Points for Specific Categories: Some cards offer higher rewards in specific categories like gas, dining, or online advertising. If a significant portion of your spending falls into these areas, these cards can be the way to go.
• Evaluate the Redemption Options: Make sure you evaluate how you can redeem your rewards. Are there minimum redemption amounts? Are the redemption options flexible and convenient for your needs? For travel cards, consider blackout dates and availability. For cash back, is it easy to get a statement credit or direct deposit?
• Evaluate Fees and APR: Rewards are great, but they can be negated by high annual fees or interest rates.
• Evaluate Sign-Up Bonuses: Many business rewards cards offer substantial sign-up bonuses after you meet a certain spending threshold within a specific timeframe. This can provide a significant initial boost in rewards. Make sure the spending requirement is realistic for your business.
• Consider Business-Specific Perks: Some business credit cards offer benefits tailored to small businesses, such as expense management tools, fraud protection, or even access to business resources or discounts.
• Evaluate the Fine Print: Always carefully review the terms and conditions of any credit card you’re considering. Pay attention to reward limitations, category restrictions, and any changes to the program.

See the full article at the link below.

Source: What tips do you have for small business owners who are shopping for a rewards card?