Best 2% cash back card for my business?

All about maximizing your rewards!
Members share tips and tricks for getting the most miles, & points.
7 posts
badlydrawnboy
Green Member
Green Member
 
Posts: 3
Joined: Wed Aug 05, 2015 12:51 pm

Best 2% cash back card for my business?

Postby badlydrawnboy » Wed Aug 05, 2015 1:15 pm

I would like a 2% cash back card for my small business. I have excellent credit (>800), and will be spending a lot on this card—approximately $150k/mo.

I do not like cards with tiered or rotating cash back percentages, as I don't typically spend much in the categories they offer higher percentages in, and I just don't have the time or interest to keep track of the rotating categories.

I have a Spark Business 2% cash back card with CapOne for another business, and a Venture 2% cash back for personal, but my credit is pretty maxed out with them so I can't get another card with a sufficient limit.

I am looking at the Citi Double Cash, but in some of the reviews I've seen that they are stingy on the limits, which won't work for me given the amount we'll be spending.

Any ideas?

P.S. You might wonder why I'm doing cash back instead of Chase Ultimate Rewards or something like that. I did have a Chase UR card for some time, but found that I could hardly use the rewards because of the limited award availability for the type of travel I do.


Vermonster
Centurion Member
Centurion Member
 
Posts: 725
Joined: Mon Oct 01, 2012 11:09 pm
Location: NJ

Re: Best 2% cash back card for my situation?

Postby Vermonster » Wed Aug 05, 2015 5:57 pm

Yes Citi can be conservative with their starting limits. But it is all going to be dependent on your income and debt. If you are putting $150k through a card in a month you must have the income to support it.

But I don't see how a Chase wouldn't work for you. What kind of travel do you do? Maybe a BofA cash rewards would work for you then.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

badlydrawnboy
Green Member
Green Member
 
Posts: 3
Joined: Wed Aug 05, 2015 12:51 pm

Re: Best 2% cash back card for my situation?

Postby badlydrawnboy » Wed Aug 05, 2015 6:26 pm

Vermonster wrote:Yes Citi can be conservative with their starting limits. But it is all going to be dependent on your income and debt. If you are putting $150k through a card in a month you must have the income to support it.

But I don't see how a Chase wouldn't work for you. What kind of travel do you do? Maybe a BofA cash rewards would work for you then.


Yes, the business has the income to support those expenses, and my personal income and credit are good. But I've had really different experiences with credit card companies with limits. Chase gave me a $70k limit on my Ink Business Rewards card right off the bat, whereas when I first applied to CapitalOne, it was more like $20k and it took me a long time to get them to increase to $80k.

The BofA card is only 1% on most purchases. I want a card with 2% on all purchases. As you can see below, with the amount I'm spending on cards across all of my businesses that amounts to almost $30k a year in cash rewards that I can spend on anything I want with no restrictions. That is more valuable to me than a rewards program with those limitations. No matter how much higher the reward value is potentially with those programs, if I can't use them for the kind of travel I do what's the point?

Probably more info than you wanted, but I posted this on FlyerTalk a while back explaining why Chase UR isn't right for me, and asking for help:

I recently signed up for Chase Ink Plus and got the 70k bonus. I own my own business and put about $120k a month on this card. So by the end of my first year I should have well over 1MM Ultimate Reward points.

When I first learned about all of the possibilities with points and "travel hacking", I got pretty excited. A first class suite on Singapore Airlines? A $3k room in a top-end Hyatt? Three round-trips to Central America/Hawaii/Caribbean for just 60k miles (plus a couple of one-way awards)? Sure, sign me up!

Little did I know that actually finding awards on flights—at least the ones I am interested in, anyways—is darn near impossible. For example:
SFO > LHR (May): zero award availability
SFO > AUS (April): awards available if I'm willing to fly red-eye or arrive late at night, or stop 1-2 times
SFO > YKA (May): no award availability without absurd routing
SFO > YYZ (Dec/Mar/Jun/Sep): award available for very late night flight with one stop. Nothing for nonstop.

So then I sign up for ExpertFlyer, thinking that will help me keep on top of United award availability—and find out that they can't track United awards anymore.

Hard not to get discouraged. I'm sure there are plenty of tricks I don't know, but I've done hours and hours of reading blog posts and I even bought an eBook called "Upgrade Unlocked" to try to learn more. So far I haven't been able to purchase a single round-trip ticket that I need to buy with Ultimate Reward points.

So, I've continued using the 1.7 million CapitalOne points for flights. This is far less desirable, because it's forever locked at 2x value (it's a 2% cash back card, and I just buy tickets online and use their "purchase eraser" to apply points to the purchase after the fact). But at least I can get the flights and routes I want.

Maybe the "travel hacking" thing just isn't right for the way that I travel. I strongly prefer nonstops, I often don't have a lot of flexibility around dates, and when I travel for leisure, I am usually with my wife and daughter. All of these factors seem to work against getting awards.

I've considered just using my CapOne card for everything. With the total amount I put on a card across all businesses, I'd earn close to 3MM points a year. That's $30k in points or cash to apply to everything from flights, to meals, to accommodation, to ??

mickeymulch
 
Posts: 2
Joined: Mon Aug 17, 2015 8:38 pm

Re: Best 2% cash back card for my business?

Postby mickeymulch » Mon Aug 17, 2015 8:48 pm

if you have good credit (800+), you might want to get on the phone with amex. i've heard stories about biz owners calling up amex to see if they have any non published reward programs. a buddy of mine claimed (obviously he had no proof since i didnt ask for his agreement) that he was able to snag a 5 percent cash back biz card just by explaining to a phone rep . maybe its a lot of hoodoo, but i think its worth trying. :)

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 3756
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Best 2% cash back card for my business?

Postby CarefulBuilder14 » Tue Aug 18, 2015 1:56 am

mickeymulch wrote:if you have good credit (800+), you might want to get on the phone with amex. i've heard stories about biz owners calling up amex to see if they have any non published reward programs. a buddy of mine claimed (obviously he had no proof since i didnt ask for his agreement) that he was able to snag a 5 percent cash back biz card just by explaining to a phone rep . maybe its a lot of hoodoo, but i think its worth trying. :)

If he spends less than $25k a year on the card, and spends the money in office supply stores (where he might be buying gift cards for other places?) or on phone services, then he would be correct. Amex does offer such a card to the public.

I have a hard time believing Amex would give him 5% cash on all spending with no dollar-value or spending-category restrictions on the 5%. Amex doesn't even get 5% of the transaction value. The more money he spent, the more money Amex would lose. Why would Amex go out of their way to give a special deal to a super-unprofitable customer?

Even if there's a big annual fee, he could spend $1M on the card. Amex would only get about $35k of revenue on that. After paying their overhead, employees, and interest expenses, Amex might have $15k left of pre-rewards, pre-tax profit. Yet they are somehow going to pay this guy $50k (5% of $1M) in cash? It's just impossible.

It's one thing for issuers to pay 5% cash on specific, narrow categories (usually with a cap). It's also common to pay 5% on a small dollar value of general spending. 5% uncapped, unrestricted would be a recipe for bankruptcy Amex would know to avoid.

Amex's high-end cards (Platinum and Centurion) lean more towards offering a lot of travel perks. The actual earned rewards are pretty unremarkable. Amex likes having high margins on big spenders.

Unless your friend is a celebrity or something - then Amex might want him to be seen with the card. I wouldn't be surprised if Tina Fey gets a few extra MR points thrown her way.

She probably has to meet her 20 swipes, though...
Love: IHG, Platinum, Sallie Mae, AA Plat, CSP
Like: Discover, ED, BCE, Hyatt, Arrival, Freedom
Might drop: BrooksBros, Prestige (Costco PC?)
Might add: Proper business card, CSR, Ritz, Delta Gold
Letting new accounts cool off since May
Really not sure what I'll add next or when

samhradh
Centurion Member
Centurion Member
 
Posts: 388
Joined: Thu Nov 21, 2013 1:13 pm
Location: United States

Re: Best 2% cash back card for my business?

Postby samhradh » Thu Oct 15, 2015 11:49 am

Fidelity has an AmEx that gives 2% cash back on all purchases. You just need a Cash Management Account account to deposit the funds to. Their checking account is fee free and has no minimum balance.

Consider getting the DoubleCash and paying it off throughout the month so when the statement closes you have reason to ask for a higher CL. Or, assuming instant approval, call their backdoor line ad explain your needs and ask for a higher CL before the card even arrives.

Maybe there is a tiered cash back card out there with an AF that you can justify? AmEx Blue Cash Preferred is the one I'm thinking of. Depends on what you usually buy for your business.

Discover it currently has a promo that for your first year they'll double all the cash back you've earned. Not sure they'd start you at a high CL either, though.

This is a new one for me: Citizens Bank Cash Back Plus offers up to 1.8% cash back if you deposit into a Citizens bank account. Similar to the Fidelity AmEx with slightly better benefits and acceptance as it's a WMC.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

badlydrawnboy
Green Member
Green Member
 
Posts: 3
Joined: Wed Aug 05, 2015 12:51 pm

Re: Best 2% cash back card for my business?

Postby badlydrawnboy » Thu Oct 15, 2015 12:28 pm

samhradh wrote:Fidelity has an AmEx that gives 2% cash back on all purchases. You just need a Cash Management Account account to deposit the funds to. Their checking account is fee free and has no minimum balance.

Consider getting the DoubleCash and paying it off throughout the month so when the statement closes you have reason to ask for a higher CL. Or, assuming instant approval, call their backdoor line ad explain your needs and ask for a higher CL before the card even arrives.

Maybe there is a tiered cash back card out there with an AF that you can justify? AmEx Blue Cash Preferred is the one I'm thinking of. Depends on what you usually buy for your business.

Discover it currently has a promo that for your first year they'll double all the cash back you've earned. Not sure they'd start you at a high CL either, though.

This is a new one for me: Citizens Bank Cash Back Plus offers up to 1.8% cash back if you deposit into a Citizens bank account. Similar to the Fidelity AmEx with slightly better benefits and acceptance as it's a WMC.


Thanks everyone. Turns out I was able to get a CIL from CapOne. Wasn't as high as I wanted, but it's enough and they will re-evaluate in another 3-4 months.



Return to “Rewards”

Who is online

Users browsing this forum: No registered users and 2 guests