Bank of America® Business Advantage Cash Rewards Mastercard® credit card

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Madison Blancaflor @M_Blancaflor  in  Business Advertising Disclosure
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Excellent Credit (740 - 850)

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Best business card for cash back

Annual Fee:
$0
Purchase Intro APR:
0% for 9 billing cycles
Regular APR:
14.49% - 24.49% Variable APR on purchases and balance transfers
Terms and Restrictions Apply

Bankrate Rating

Commonly used for: 0% Introductory APR, Auto Rental Insurance, Business, Cash Back, EMV, Excellent Credit, Extended Warranty Program, Gas, Lost Luggage Reimbursement, Mobile Pay Ready, No Annual Fee, Price Protection, Purchase Protection, Rewards, Roadside Assistance, Travel, Travel Accident Insurance, Unsecured credit card, Zero Fraud Liability.

Bank of America customers looking for a simple way to earn cash back on business purchases can use the Bank of America® Business Advantage Cash Rewards Mastercard® to reap rewards on gas, office supplies, dining expenses, and even niche business expense categories like wireless services and business consulting services.

Review

Bank of America has recently made a name for itself as one of the only issuers to offer “choose your own category” rewards structures. Bank of America® Business Advantage Cash Rewards Mastercard® credit card holders will earn 3% cash back in the category of your choice from the following six categories:

  • Gas stations
  • Office supply stores
  • Travel
  • TV/telecom and wireless services
  • Office supply stores
  • Computer services or business consulting services

You’ll also earn 2% cash back on dining, though all bonus category earning caps after spending $50,000 in those categories each calendar year (you earn 1% on all other purchases). With no annual fee and a 0% offer on purchases for 9 billing cycles (after which variable APR of 14.49% – 24.49% applies), it’s not a bad choice if you’re looking for simplicity.

Members of Bank of America’s Preferred Rewards for Business program can get an additional 25%-75% rewards bonus on most purchases, which can easily add up to a sizeable bonus throughout the year. Preferred Rewards for Business members also have access to a few extra perks from Bank of America.

You don’t have to have a formal business to be able to reap the rewards of this card (or any business card for that matter), either. Freelancers, consultants or online sellers can also qualify for a business credit card, which helps you keep your business and personal expenses separate.

The Business Advantage Cash Rewards card has a solid sign-up bonus, allowing you to earn a $300 statement credit after spending $3,000 within the first 90 days of opening your card.

Perhaps the biggest disadvantage to this card is the lack of redemption flexibility. You can redeem your cash back only after you accrue $25 in rewards, and your only options are a statement credit or a direct deposit into a Bank of America® small business checking or savings account. The cap on how much 3% and 2% cash back you can earn is also a downside to the card.

This card definitely isn’t as lucrative as some of the other cash back business cards on the market, but it has one of the best cash back rewards rates for gas purchases and office supplies. If those are the two categories your small business spends the most in annually, this is definitely a card worth considering.

Who should get this card

Business owners who spend the most on gas and/or office supplies will enjoy the high rewards rate in those categories. This card provides a simple way to earn cash back to lower your monthly expenses.

This card is also a nice option if you already use Bank of America credit cards or small business checking or savings accounts. With direct deposit options available for cash back rewards and integration with Bank of America’s mobile banking app, existing BofA customers might enjoy the simplicity of having all of their business accounts at the same bank.

Advantages
  • The "choose your bonus category" rewards structure is relatively rare, providing cardholders with an added layer of customization.
  • $300 statement credit after spending $3,000 within the first 90 days.
  • No annual fee.
Disadvantages
  • Inflexible redemption options for rewards.
  • $50,000 cap for each calendar year on combined 3% and 2% cash back categories (earn 1% cash back after).

Fees and APR

  • Enjoy a 0% introductory APR for nine billing cycles on purchases, after that a variable 14.49% – 24.49% APR will apply.
  • Pay no annual fee.
  • There’s a balance transfer fee of $10 or 4% of the amount of each transaction, whichever is greater.
  • This card has a 3% foreign transaction fee on purchases made outside the U.S.
  • Late payment is $19 if balance less than or equal to $100; $29 if $100.01 – $1,000; $39 if $1,000.01 – $5,000; $49 if greater than $5,000

Extras, perks and using rewards

You can start redeeming your cash back after earning at least $25 in rewards. You can redeem your rewards as a statement credit or a deposit in your Bank of America checking or savings account.

Additional employee cards are free.