How to know when you need a business travel rewards credit card
Quick insights
- Some business credit cards offer travel-specific rewards and benefits.
- These types of credit cards may allow cardmembers to earn points and airline miles on everyday business purchases.
- Small business owners may want to review a credit card’s rewards structure and available benefits before applying.
Business credit cards can be useful tools for separating business and personal finances. Additionally, many cards allow business owners to earn rewards by making typical business purchases. There are also business travel rewards credit card options, which provide travel-related rewards and benefits.
Credit cards with travel rewards may be ideal for companies whose employees travel frequently. Read on to learn how business travel credit cards work, their benefits and factors to consider before applying for one.
What are business travel rewards credit cards?
While many business credit cards offer rewards, some specifically offer benefits helpful for employees who travel. Depending on the credit card, this may be the opportunity to exchange points for airline miles and hotel stays, or access to additional benefits like travel insurance or lost luggage reimbursement.
Regularly using a business travel credit card on expenses may allow companies to reinvest any earned rewards into business travel or other related expenses. These types of credit cards may also offer flexible ways to redeem rewards.
For example, some of Chase’s Ink business credit cards allow cardmembers to redeem points for cash back, statement credits, travel experiences and more. Keep in mind that some of these credit cards are subject to an annual fee.
Benefits of business travel rewards credit cards
While credit card rewards vary between different cards, there are a few common benefits found on many travel credit cards.
Consider reviewing the following to determine if a business travel rewards credit card could be right for you:
Travel benefits
If you or your employees frequently travel for business, it may be wise to select a credit card that provides travel benefits. For instance, some credit cards provide cardmembers the ability to cancel or reschedule trips without paying additional fees. Similar benefits may be useful for businesses that schedule lots of trips.
A few examples of potential travel benefits include:
- Travel insurance
- Reimbursement for delayed or lost luggage
- Rental car insurance
1:1 point transfer
Certain business credit cards, like the Ink Business Preferred credit card, allow cardmembers to participate in a 1:1 point transfer program with participating frequent travel programs. This means that each credit card points equals one partner mile/point in eligible programs.
Introductory offers
Many credit cards allow new cardmembers to earn introductory offers or sign-up bonuses. This often entails cardmembers hitting a certain spending threshold with their new card during a specific period after the account opening. By doing so, they may earn statement credits, points or other rewards.
Employee credit cards
Business travel often involves expense reporting and employee reimbursement for eligible purchases. Using a business travel credit card can simplify the expense reporting process. This is because many business credit cards, like the Chase Ink suite of small business credit cards, issue individual employee credit cards.
These credit cards are linked to the company’s credit account, which allows employees to make purchases on behalf of the business. This way, employees won’t need to use personal credit cards for business purchases. In turn, companies won’t need to go through the process of reimbursing employees.
Tools for managing employee spending
Many business credit cards allow primary cardmembers to set spending limits for authorized users. In the case of businesses, this means setting employee spending limits. This may be useful for managing company credit cards.
How to choose a business travel rewards credit card
If you travel for business and think a travel rewards credit card may be a good option for your company, here are a few factors to consider before applying:
Spending habits
Credit cards often have different accelerated earning categories for rewards. If you regularly spend on specific expenses, these cards may be good options for you.
Other cards provide flat rewards on all eligible purchases. For instance, the Ink Business Unlimited® credit card allows cardmembers to earn an unlimited 1.5% on all eligible purchases regardless of category. Cards like this one may be ideal for those who prefer earning rewards on all purchases.
Card rewards structure
Different credit cards provide different ways to earn and redeem points. For example, if earning miles is important to you, consider a credit card that allows you to redeem rewards for airline miles or access 1:1 point transfer programs.
Annual fee
Cards with additional travel benefits may have an annual fee. Before applying for a credit card, determine whether the available benefits are worth the potential annual fee.
Additional benefits
Some business travel credit cards offer additional benefits that could be useful both during travel and day-to-day business operations. It may be wise to research whether a credit card offers other features before filling out an application.
A few examples of additional features could include:
- Purchase protection
- Extended warranty programs
- Discounts on employee cell phone plans
- Roadside dispatch
In summary
Business travel rewards credit cards can be helpful options for companies whose employees regularly travel for business reasons. There are many potential benefits to selecting one of these credit cards, including the ability to earn points and redeem them for travel rewards.
If you’re ready to apply for a business credit card, you may want to consider exploring the benefits offered by Chase Ink small business credit cards.
