Credit card rewards on wholesale purchases?

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Credit card rewards on wholesale purchases?

Postby smit2685 » Wed Mar 09, 2011 9:45 am

Hey Guys,

Quick brief - I run an ecommerce store. Someone purchases a product online at our site and it goes through our merchant account ( 2 days) to our business bank account. Before it clears, we have to purchase the product from our wholesaler who then ships the product out to our customer.

My question is this - Is there a way to maximize rewards by using a credit card with miles to purchase our wholesale product?

Since we receive payment for these products prior to ordering them, we know we will pay off the balance monthly on our credit card. But if we purchase 10k+ product per month from our wholesaler on the credit card, I'd imagine we can rack up some hefty rewards?

I hope this is not a dumb question, any advice would be greatly appreciated. Thanks!

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Postby alsteig » Wed Mar 09, 2011 4:25 pm

Cash back rewards card. Sounds great whats the issue? The only thing I would be concerned to is using a consumer card as opposed to a business card for your business transactions.

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Postby flex » Sun Mar 13, 2011 3:09 pm

Hi smit2685:
Its a very good idea. When you get your corporate card, you will have to sign a personal guarantee. I own a distribution business as well. We are not e commerce as we purchase merchandise from our vendors and then deliver in our trucks. We use credit cards extensively, about $55,000 per month. I try to buy early in the billing cycle and use only about half of my credit line and by doing this I average 45 days to pay for the merchandise after I receive it. We do offer credit to many customers so A/R is a constant problem. We are lucky in that about 90% of our customers pay in less than 30 days. I always pay my cards in full, if I had to pay interest the rewards would not be worth it.

We have 3 corporate cards and would like to hear from other members if we are maximizing our rewards use. Travel is important to us, and we are able to take 2 nice vacations a year with free airfare , rooms, and sometimes car rental, .

Here are the cards we are using:
US Bank Flexperks Bus. Travel Rewards approx. $17,000 per month (use mainly for airfare, never have trouble booking the flights we are looking for, flights are usually 20,000-40,000 per person, also can get Visa gift card, 10,000pts for $100.00 gift card)

Capital One Business Platinum approx. $18,000 per month (Double points for the first year, 2 months left at double points) Their rewards seem inflated, but at double points they are a good value) If they do not extend the double points offer, I will stop using and find another card

Marriott Rewards approx. $20,000 per month (Use for hotel rooms, the merchandise offered, car rentals, etc are too expensive)

I may get another card as there is another vendor we buy from we are buying $10,000 a month from that I am writing a check to for a 1% discount if paid within 10 days. With a card I could get rewards and have at least 30 days to pay.

Note,I get offers from various Amer. Exp cards but my vendors do not take AmEx.

Are there better cards I should be considering with this amount of monthly purchases?

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