Business travel rewards cards vs cash back credit cards
Quick insights
- Business travel rewards credit cards allow cardmembers to earn either points or airline miles toward business travel.
- Cash back rewards credit cards typically have multiple ways to redeem credit card points.
- The right credit card for your business may depend on your typical expenses and how you want to redeem points that you earn.
Travel rewards cards and cash back credit cards are both common options for businesses. However, one type of card may be more beneficial depending on a company’s expenses and business goals.
Travel rewards credit cards provide ways to earn airline miles or points to redeem for travel-related expenses. They also might offer additional travel-related benefits. Cash back rewards credit cards, on the other hand, can be more straightforward options for businesses who prefer the flexibility to redeem points in different ways.
Below, we cover details of travel rewards credit cards and cash back credit cards, plus which factors you may want to consider when deciding between the two.
Differences between business travel rewards credit cards and cash back credit cards
Business credit cards can be valuable assets for business owners. They allow cardmembers to separate business and personal expenses, review employee spending and earn rewards on day-to-day business purchases.
To choose the card that’s right for your business, you may want to better understand how both travel rewards cards and cash back credit cards work:
Business travel rewards credit cards
Many business travel rewards credit cards allow cardmembers to earn either points or miles. Rewards may be able to be redeemed for travel expenses like airfare, hotel stays and rental cars.
Additional features might include:
- 1:1 point transfers: Credit cards designed for business travel may offer 1:1 point transfers. This means that credit card points may be transferred to participating frequent travel programs at full value.
- Airport lounge access: Some travel credit cards offer complimentary access to select airport lounges. Access and fees may vary depending on your credit card.
- Other travel benefits: Some credit cards offer additional benefits that could be useful during business travel, like Auto Rental Collision Damage Waiver and Lost Luggage Protection (both offered by all Chase Ink business credit cards).
Business travel rewards credit cards and their associated features may be good options for businesses that specifically want to earn rewards and redeem them on future work-related travel.
Cash back rewards credit cards
Cash back rewards credit cards often allow cardmembers to redeem points in various ways (not just airline miles). For example, business owners with some Chase Ink business credit cards may choose to redeem points for cash back, statement credits, gift cards, travel and more. Though cash back rewards credit cards aren’t necessarily designed for travel, they may offer some travel benefits.
Business cash back rewards credit cards may also offer opportunities for earning points at an accelerated rate in select categories. Therefore, these credit cards may be good options for businesses whose expenses tend to be similar each month. This way, they can potentially maximize ways to earn rewards.
How to choose the right business credit card
Once you understand how business travel rewards credit cards and cash back rewards credit cards differ, you may want to begin researching the right credit card for you. Here are a few factors you may want consider when applying for a business credit card:
Rewards structure
You may want to begin your research by determining how you’d prefer to earn credit card rewards. If you know that you plan to reinvest your rewards into future business travel, then a travel rewards credit card may be right for you. If you’d prefer the flexibility to redeem rewards for cash back or other avenues, then a cash back rewards credit card may be ideal.
For example, points earned with the Chase Ink Business Preferred® Credit Card are worth 25% more when booking trips through Chase Travel℠. This type of card may be helpful for business owners who travel frequently.
Typical business expenses
Review your monthly business expense categories to see if there are any patterns. If you tend to spend money on the same categories, you may want to see if there is a business credit card that complements that.
For instance, some business credit cards allow you to earn points at an accelerated rate for select business-related purchases. The Chase Ink Business Cash® Credit Card, for example, allows cardmembers to earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services every account anniversary year.
Additional card benefits
Both travel rewards credit cards and cash back rewards credit cards may provide additional benefits to cardmembers. For example, all Ink small business credit cards include features like Purchase Protection, Extended Warranty Protection and Roadside Dispatch.
If you’re interested in using these types of benefits, consider checking if a credit card offers them before applying.
Annual fees
Keep in mind that some credit cards that offer additional features may have an annual fee. Consider researching both a credit card’s annual fee and available benefits. This way, you can decide whether the features are worth the fee.
Note that Chase Ink credit cards have varying annual fees depending on the specific card.
Employee travel
If you or your employees travel often, it may be worth looking into travel rewards credit card options. This way, you can potentially earn airline miles to offset the cost of future trips.
It also may be beneficial to check whether your credit card of choice allows you to set employee spending limits and issue individual employee cards. These features may be useful if your employees make purchases on behalf of the business (this could include business travel costs).
In summary
If you’re planning to apply for a business credit card, it may be helpful to determine whether a travel rewards card or cash back rewards credit card is the better choice for your business. To do this, you may want to consider evaluating your typical business expenses and deciding whether you’d prefer travel rewards or cash back rewards.
Travel rewards credit cards can be useful in earning eligible airline miles and accessing other travel-related benefits, but some businesses may prefer the flexibility that cash back rewards credit cards might offer.
