Discover it® Business Card

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Bankrate Score: 84 out of 100

Commonly used for: Business.

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Who doesn’t love earning unlimited cash back on purchases?

With the newest addition to Discover’s credit card lineup, cardholders can earn 1.5 percent cash back on every purchase – no earning cap, no expiration for rewards. The Discover it® Business Card has no annual fee, no foreign transactions fees and a flat rate rewards system– making it a great low-maintenance business credit card.

Although tiered category credit cards offer higher rewards rates, the unlimited earning potential of the Discover it® Business can mean more cash back depending on your business’ budget. Plus, the flat rate rewards system is an attractive option for those less willing to juggle purchase categories.

Best of all, Discover offers Cashback Match™ across almost all of their cards, meaning your cash back rewards are matched dollar for dollar by Discover as a bonus at the end of the first year.

Worthy addition to your wallet?

The Discover it® Business Card can help almost any business owner maximize rewards, but it comes with a few drawbacks to consider.

Small businesses can use this card as a simple way to earn rewards without having to “play the points and miles game.” If your business has a large budget, pair this card with a tiered category cash back card, such as the Ink Business Cash Credit Card, to use on expenses after hitting the yearly cap for higher rewards rates. Even freelancers and side hustlers can use this card to earn cash back without having to pay high annual fees.

As for the downsides to the card – most notably is its lack of an introductory bonus. Similar cash back credit cards typically offer a cash bonus for spending over a certain threshold within a specified timeframe. The Cashback Match™ offered at the end of the first year can outweigh the loss of a bonus (keep in mind that you won’t get the cash back match until after one year of card ownership). For example, if you spend $34,000 on business expenses annually, the cash back match would be worth more than the $500 introductory bonus of the Ink Business Cash Credit Card.

Another possible dealbreaker: Discover’s perks portfolio recently took a major hit with the termination of Discover Deals, auto rental insurance, flight accident coverage and more. If these particular perks are important to you, another cash back card might offer more long-term value.

Advantages
  • Earn unlimited 1.5 percent cash back for every dollar spent.
  • Get 0% intro APR for 12 months on new purchases (14.99% to 22.99% variable APR after).
  • No annual fee or foreign transaction fees save you cash in the long run
  • Discover will match the cash-back rewards you earn after your first year of card ownership.
Disadvantages
  • There is no sign-up bonus with this card.
  • This card offers no real travel perks for those who travel frequently for business.
  • Many of Discover’s perks (including Discover Deals, which used to be a huge draw to their rewards system) have been cut.

Hands down, the greatest benefit to this card is the Cashback Match™ offer, which Discover offers across most of their cards. If you spend $4,000 each month on business expenses, you’ll receive $720 in cash back each year. Discover will match that at the end of your first year of card usage, meaning you’ll receive $1,440 total in cash-back rewards.

If your business has a large budget, you’ll benefit most from using this card as a supplement to other business cards to maximize your earning potential.

How this card compares

Discover it® Business vs. Capital One® Spark® Cash for Business

The Capital One® Spark® Cash for Business is considered one of the best business rewards credit cards available, offering a flat 2 percent cash back on all purchases. The Discover it® Business gives it a run for its money, but the higher rewards rate from the Spark Cash for Business could make it a more valuable card for your wallet. While there is a $95 annual fee, $19,000 in spend each year covers the cost of the card.

The other possible dealbreaker of the Spark Cash for Business is that it doesn’t come with an introductory 0% APR offer. If you have large purchases coming up that you want to pay off without interest, the Discover it® Business is going to be your better option.

Read Bankrate’s Capital One Spark Cash for Business Review.

Discover it® Business vs. CitiBusiness® / AAdvantage® Platinum Select® World Mastercard®

If you’re looking for a card that can help you make the most out of your business travel, the Discover it® Business is not for you. On the other hand, the CitiBusiness® / AAdvantage® Platinum Select World Mastercard® offers AAdvantage members solid perks, including preferred boarding on American Airlines flights and a 25 percent discount on eligible in-flight purchases.

If your priority is saving on travel (and you are loyal to American Airlines), this card is a better option for your business.

Read Bankrate’s CitiBusiness® / AAdvantage® Platinum Select World Mastercard® Review.

How to get the most value out of this card

The Discover it® Business is a straightforward cash back card. You don’t have to manage multiple rewards categories or worry about caps on how much you can earn. However, truly maximizing the value of the card comes from pairing it with another. It takes more credit card expertise to dig into spending categories and the travel rewards game, but the benefits your business can reap are worth the extra effort.

Do you spend a large portion of your budget on office supplies and phone service for employees? Pair this card with the SimplyCash® Business Credit Card from American Express. If your business hits the maximum spend for both 5 and 3 percent cash back rewards categories each year, you can earn an extra 0.5 percent cash back by using the Discover it® Business on the remainder of your purchases. You can also use the Discover to earn higher rewards on purchases that don’t fall within those high rewards categories.

While half a percent may not seem like a large jump in rewards potential, it can quickly add up. If your business spends an extra $50,000 in expenses that don’t qualify for the 3 or 5 percent cash back rewards on the SimplyCash® card, that’s an extra $250 in cash back rewards just from using the Discover it® Business instead of reverting to the standard 1 percent cash back on the Amex.

Frequent travelers will benefit from pairing this card with a travel rewards business credit card like the CitiBusiness® / AAdvantage® Platinum Select World Mastercard®. Travel cards typically reap high rewards on travel expenses while offering great perks for those who fly often, but they sometimes lack in other spending categories. Maximize your rewards by using the Discover it® Business on those other expenses.

TL;DR

No one is ever going to label the Discover it® Business as a luxury business card that can fit every business owner’s needs, but it has the potential to be a great addition to your wallet.

Whether you’re looking for an easy way to organize business expenses while earning cash back or wanting to maximize business purchase rewards, you should consider adding this card to your wallet. It can add value without hindering users with hefty annual fees or a complicated rewards earning system.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including card rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the bank’s website for the most current information.