7 unsung benefits of business credit cards

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There’s more to business credit cards than rewards and 0% introductory offers.


Key points

  • Business credit cards often have many features, and not all of them are widely known.
  • Free shopping and cell phone protection is a common benefit that some cardholders aren’t aware of.
  • You can also find cards with accounting tools, flexible purchasing power, and more.

For business owners and freelancers, business credit cards are a useful financial tool with obvious benefits. They make it easy to separate your business expenses from your personal expenses, which is definitely helpful at tax time. A lot of best business credit cards also helps you save money with other features, such as cash back on purchases and a 0% introductory APR.

These are perhaps the benefits that stand out the most, but these are just the tip of the iceberg. There are also many little-known benefits that could be just as valuable.

1. Employee cards with expense control

Most business credit cards allow you to add employees as authorized users. Each authorized user gets their own card connected to your account, so they can make purchases for the company. To improve it, many business cards allow you to add as many employee cards as you want to your account for free.

Card issuers also allow you to set up spend controls on employee cards. Instead of giving an employee access to your entire line of credit, you can set a lower limit on their card for security reasons.

2. Mobile phone protection

Some business cards offer free protection for your cell phone. If you pay your company’s monthly cell phone bill with a card that offers this benefit, it will cover phones for you and employees enrolled in the plan. Considering the high price of smartphones, this protection can certainly be useful.

Mobile phone protection normally covers damage or theft. Full terms and conditions will be available in the Card Benefits Guide.

3. Purchase Protections

Purchase protections are another common add-on coverage offered by many business cards. There are two types of protection that we often see:

  • Purchase protection that protects new purchases from damage or theft
  • Extended warranty coverage that automatically extends eligible manufacturer warranties

Since they’re designed for business owners, most business credit cards have more powerful accounting tools than consumer credit cards. credit card. Depending on the card, you can get detailed quarterly and annual reports. Some business cards have built-in accounting software, which makes it quick and easy to connect your transactions to programs such as QuickBooks.

5. Virtual credit cards

A virtual credit card is a temporary card number that you can generate to make purchases online and over the phone. Some card issuers offer this feature with their credit cards for both individuals and businesses. When you generate a virtual credit card, it has its own card number, expiration date and security code. Transactions will be processed as normal and will be posted to your credit card account.

Considering the prevalence credit card fraud i.e. virtual cards are a great way to make purchases without revealing your real card number. Anyone can benefit from it, but it’s especially useful for business owners. If you and your employees regularly use your business card account, it’s a huge problem if the card number gets stolen and you need to get a replacement.

6. Flexible purchasing power

Although most business credit cards have a credit limit, there are exceptions. Some of these cards do not have a preset spending limit and instead take a flexible approach. With these cards, the amount you can spend is flexible and based on your spending habits and credit history.

Note that this is normally offered by full payment cards. As the name suggests, these cards require you to pay in full each month, so you can’t carry over a balance. If you don’t mind that and your main concern is having enough credit for big expenses, a card with no preset spending limit will be just fine.

7. High rewards on large purchases

Rewards are one of the most common perks of business cards. If you pay with a card that earns rewards, you’ll earn cash back, points or miles on your purchases.

A small number of business cards earn even more rewards on large ticket purchases. For example, some high-end business cards offer an additional 0.5% cashback on purchases of $5,000 or more. If your business frequently makes large purchases, you might maximize your rewards with a card that has this type of advantage.

Benefits vary by business credit card. Like you compare credit cards for your business, consider more than just the first features. Little-known perks can also offer a lot of value, so it’s worth seeing what else these cards have to offer.

Expert-selected business credit cards with rich rewards and benefits

Cash back, travel rewards, 0% introductory APR financing—all of these can be great credit card perks for business owners. But how do you find the right business credit card for you? There are tons of offers on the market today, and sifting through them to find the right one can be a big hassle. So we’ve done the hard work for you.

Get started today with one of our best business credit cards of 2022.