Understanding business card reward schemes


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » Understanding business card reward schemes

Understanding business card reward schemes

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
A good reward scheme has become one of the top most priorities of credit card owners and therefore, has become the deciding factor of choosing a credit card. Nowadays, because of the tough competition, many credit card companies offer beneficial reward schemes without charging the annual fee. Business owners benefit highly from these reward credit cards that do not charge an annual fee. Some credit card companies offer reward schemes that are tailored to meet the needs of small business owners. Reward schemes like point system, or grocery reward points do not benefit business owners. They have special uses for their cards, and so require a specific set of reward schemes if they have to benefit from the use of their credit cards. The most attractive reward scheme that helps the business owners the most, is the frequent flyers reward program, or air miles reward scheme. This is good for business owners who are required to travel quite frequently for official purposes. Having an air miles reward scheme not only helps save instant money on the air tickets, but also help getting an upgrade to business class, first class waiting lounge, instant check-in and many other advantages. Air mile reward schemes work fairly simple. Air miles can be accumulated with every single use of credit card, and when it reaches a certain limit, the points can be redeemed for free air tickets for the next travel. Since business owners use only credit cards for transactions, it is very easy to accumulate air miles that can be redeemed for discounts on air tickets. These air miles will have an expiration date and a fixed upper and lower limit. While this can cause some restrictions while redeeming the points, frequent flyers are not greatly affected by this. Cash back reward schemes also offer a great advantage to business owners, since business owners can earn some percentage of the cash they spend all year round. Credit card companies offering this reward scheme, give back a preset percentage of cash back every year to card owners. Depending upon the total money spent, that percentage can range anywhere between 1% and 5%. Since business owners deal mostly with credit cards for their purchases, there can be a substantial amount of returns every year from this scheme. Small time business owners can use these returns effectively for logistics, business related purchases and earn even higher discounts on their purchases. Travel rewards other than air miles can also be of special interest to business owners, since deals on hotel stays and car rentals can be very attractive. Similar to air miles, for every use of credit cards, points can be accumulated that can be redeemed for free hotel stays and discounts on car rentals. Since this is in close conjunction with air miles rewards, both combined can give very good deals on travel. Other reward schemes like discounts on any business related purchases, or free upgrades of business software and free shipping of office supplies and so on, can also be beneficial. But these rewards do not offer much in return when they are taken individually.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!