Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® credit card review: A boon for small businesses

The true potential of this card, however, is unlocked by issuer loyalty. Thanks to Bank of America’s Preferred Rewards for Business program, the Business Advantage Unlimited Cash card could be one of most valuable flat-rate cash back cards on the market if you maintain a high average balance across your savings and investment account.

Rewards rate: A boost for Preferred Rewards program members

The Business Advantage Unlimited Cash is a flat-rate cash back card, which makes it an excellent choice if you want a simple rewards program, cash back on expenses that aren’t usually rewarded by typical bonus categories or if your business expenses exceed beyond normal category spending limits.

The Preferred Rewards program is a standout benefit that distinguishes Bank of America as the best cash back card provider for members who have established savings. Preferred Rewards for Business is the version for business cardholders that has the same cash back boost and account balance requirements.

Maintaining an eligible Bank of America business checking account and an average daily balance of at least $20,000 across your qualifying Bank of America business deposit and/or Merrill business investment accounts can magnify your rewards based on the following status tiers:

• Preferred Rewards Gold (at least a $20,000 balance): 25 percent boost for 1.87 percent cash back on all purchases
• Preferred Rewards Platinum (at least a $50,000 balance): 50 percent boost for 2.25 percent cash back on all purchases
• Preferred Rewards Platinum Honors (at least a $100,000 balance): 75 percent boost for 2.62 percent cash back on all purchases

Attaining Preferred Rewards status may be even more valuable for business cardholders, since you’ll also get a range of other perks including reduced banking fees, cash back on payroll services and boosted or discounted interest rates on select Business Advantage accounts (including savings accounts, commercial real estate loans, credit line financing and auto loans) that improve with your status.

Fees: A low-cost option for business owners

The Business Advantage Unlimited Cash Rewards card is a low-cost business card. It doesn’t charge an annual fee, so you won’t have anything cutting into your rewards unless you accrue interest or purchase anything abroad. The foreign transaction fee is 3 percent, but carrying a balance or missing a payment will lead to stiffer costs.

Fortunately, the card’s 0% intro purchase APR will keep interest at bay for your first 9 billing cycles, but you’ll take on an 18.49% to 28.49% variable APR afterward. Even still, that’s below the current average credit card rate and makes this card a surprisingly low-interest option for a business.

No-annual-fee cash back cards usually aren’t known for offering bountiful benefits — especially for business cards in this vein. Bank of America’s Business Advantage cash back cards are no exception. Otherwise, the travel services and optional Balance Connect™ overdraft protection service may be handy for the unlimited employee cards you can request, but aren’t very substantial.

Current welcome offer: Low reward for high risk

You’ll be able to earn a $300 online cash bonus by spending $3,000 in combined purchases during your first 90 days with the card. This welcome offer is a solid payday that compliments the card’s flat-rate rewards structure. That said, it’s far from the most rewarding intro cash bonus you’ll find on a no-annual-fee business card. For example the Bank of America Business Advantage Customized Cash credit card has a welcome bonus of $200 online cash rewards after you make at least $1,000 in purchases in the first 90 days of account opening. Depending on the type of business, the required spend amount could be a bit of a stretch for some without the best pay off.

Redemption: Limited options

Redeeming your rewards is also simple. By logging into your online Bank of America account or via mobile banking access, you can redeem your rewards balance for a:

• Direct deposit to your business’ Bank of America checking or savings account
• Statement credit
• Mailed check

There’s no minimum rewards redemption requirement to worry about and your rewards won’t expire for the life of your account.

This is a very limited list of redemptions options, especially when considering many business cards have options to redeem for gift cards, travel, merchandise or credit with brand partners. It’s also a bit disappointing that the automatic cash back redemption feature for consumer cards isn’t available on their business card equivalents, as it helped set Bank of America apart for busy cardholders looking for the smoothest rewards experience possible. However, automated rewards aren’t a common perk for business cards since employee card spending and tax tracking may require more detailed accounting. If automatic rewards redemption is a must-have feature for you, some Capital One business cards are also known for this benefit.

Perks: Card benefits are slim to none

While the Bank of America Business Advantage Unlimited Cash card’s potentially high rewards rate can make you consider it, the lack of benefits may change your mind. The card comes with very common benefits, such as contactless payments, zero fraud liability and access to cash flow management software and account monitoring. You can get a few more perks if you become a Preferred Rewards member, but that requires signing up for a business checking account with Bank of America.

There are a few travel benefits that could be appealing, such as auto rental insurance, emergency ticket replacement, lost-luggage assistance, legal and medical referrals while traveling. You also have up to $100,000 in travel accident insurance, which is amazing for emergencies.  

Bankrate credit cards writer Ryan Flanigan used his Bank of America Business Advantage Unlimited Cash Rewards Mastercard for some breathing room on large purchases.

I like having a flat-rate cash back option for my business spending. I used the sign-up bonus and intro APR offer to make some larger purchases easier to digest. Bank of America is a solid issuer for giving you some breathing room with your purchases at the start, making a card like this a good option when you need some money back on a big expense. And if you have qualifying balances with Bank of America, the Preferred Rewards program can boost your earnings as high as 2.625 percent, which is a great return for any purchase.

— Ryan Flanigan, Writer, Credit Cards

While the Bank of America Business Advantage Unlimited Cash covers many bases with its flat rewards rate, there are other business cards on the market that could offer some entrepreneurs a little more, depending on the size of the business and specific business needs. 

As a flat-rate card, the Bank of America Business Advantage Unlimited Cash pairs well with business cards that reward your biggest spending categories. If there are categories that you regularly use, pairing this card with a tired rewards card can maximize your spending.

The initial rewards you’d earn with the Bank of America Business Advantage Unlimited Cash Rewards Mastercard make it a far cry from the most rewarding option for a primary business card. But, it’s well worth it if you prefer streamlined rewards or if your expenses extend well beyond normal bonus category cards’ spending categories.

However, the most noteworthy angle to consider is the Preferred Rewards cash back boost if your business already banks with Bank of America. In fact, achieving Platinum Honors status would make the Business Advantage Unlimited Cash perhaps the most lucrative flat-rate cash back card on the market with unlimited 2.62 percent back on all purchases.