Bank of America Business Advantage Cash Rewards Card 2023 Review
What would earning cash back on purchases allow you to do for your business?
The Bank of America Business Advantage Cash Rewards credit card gives you flexibility in earning cash back with no annual fee.
Plus, as a Bank of America Preferred Rewards for Business member you can earn additional cash back on purchases.
This card features a tiered rewards structure, with the option to choose the spending category in which you earn the most cash back.
Spending categories are tailored to the things businesses tend to buy the most.
The Bank of America Business Advantage Cash Rewards credit card may be a good fit if you want to maximize cash back earnings for your business. Read on to learn more about this card’s benefits and features.
Bank of America Business Advantage Cash Rewards Card Pros & Cons
Earn 3% Cash Back in the Category of Your Choice
The Bank of America Business Advantage Cash Rewards credit card puts you in charge of where you earn the most cash back each month.
With this card, you can earn 3% cash back in one of six spending categories, including:
- Gas stations
- Office supply stores
- TV/telecom & wireless
- Computer services
- Business consulting services
Gas stations are the default spending category. But you can choose which category you’d like to earn 3% back in, based on how you’re spending that month.
You also earn 2% cash back on dining. The 3% and 2% cash back rewards apply to the first $50,000 in combined purchases each calendar year.
Once you hit that threshold, you’ll continue earning unlimited 1% cash back on those purchases.
You also earn unlimited 1% cash back on all other purchases that don’t earn 3% or 2% back. So this card could be lucrative if you’re a heavy spender for your business.
You can rack up more cash back as a Bank of America Preferred Rewards for Business program. This program is available to Bank of America customers who have an eligible business bank account.
The rewards bonus you can get is based on your account balances. Here’s how much of a cash back bonus you could at each tier:
- Gold: Earn 25% more rewards
- Platinum: Earn 50% more rewards
- Platinum Honors: Earn 75% more rewards
This is an easy way to earn additional cash back if you already have business bank accounts at Bank of America. This card’s introductory cash back bonus is another way to add to your rewards tally.
Qualifying for the introductory cash back bonus means meeting a minimum spending requirement. If you qualify, the bonus is applied as a statement credit.
Using Cash Back Rewards for Your Business
Cash back earned with the Bank of America Business Advantage Cash Rewards credit card doesn’t expire so you can redeem rewards when you want. You can redeem cash back in the following ways:
- As a deposit into a Bank of America checking or savings account
- For card statement credit
- As a paper check that’s mailed to you
The simplest options are a Bank of America bank account deposit and statement credit. Either one can save your business money.
If you choose the statement credit option, that’s less you have to pay back. And if you carry a balance month to month, that’s less money that interest accrues on.
The deposit option puts cash in your hands. You could then use it to cover business expenses, add to savings or for anything else your business needs.
Other Card Features and Benefits
The Bank of America Business Advantage Cash Rewards credit card isn’t super heavy on added features. But it does come with a few helpful extras, including: ;
- Travel accident insurance
- Lost luggage reimbursement
- Trip cancellation coverage
- Trip delay reimbursement
- Cash flow management tools
- Fraud monitoring
You’ll also enjoy some added benefits as a Bank of America Preferred Rewards for Business member, including discounts on loans and bank fee waivers.
This card doesn’t have an annual fee but you will pay a 3% foreign transaction fee for purchases outside the U.S.
So, while you could earn 3% cash back on travel, you’d essentially hand that same 3% back in fees for purchases made on trips abroad.
Also, it’s worth noting that you don’t get an introductory APR for balance transfers, just purchases.
The regular variable APR applies to any transfers you make so it’s not the best option for consolidating credit card balances.
Compared to Other Business Credit Cards
When choosing a cash back card for business, it’s helpful to see how different cards stack up. Here are three alternatives to the Bank of America Business Advantage Cash Rewards credit card that are worth considering.
Chase Ink Business Cash
The offers 5% cash back on the first $25,000 in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year.
You also earn 2% cash back on the first $25,000 in combined purchases at gas stations and restaurants each year. Plus, you get unlimited 1% cash back on all other purchases.
Rewards can be redeemed for cash back, travel and gift cards through Chase Ultimate Rewards. This card has no annual fee and employee cards are also free.
Capital One Spark Cash for Business
The offers a streamlined approach to earning cash back. All purchases earn unlimited 2% cash back, with no rewards tiers or bonus categories to manage.
There’s no foreign transaction fee and employee cards are free. The annual fee is $0 the first year, then $95 after.
Redeeming cash back is easy. You can redeem rewards in any amount, at any time to use for your business as you’d like.
Blue Business Cash Card from American Express
The lets you earn 2% cash back on all eligible purchases, up to the first $50,000 per calendar year. After that you’ll earn unlimited 1% on purchases.
Cash back earned is automatically credit to your statement to keep things simple. There’s no annual fee and you have the ability to spend above your credit limit with Expanded Buying Power.
Business vs. Personal Cards
Business credit cards and personal credit cards are both convenient for making purchases and earning rewards. But they’re not exactly the same.
With a business credit card, you’re earning rewards and bonuses that a business would most likely use. So you might get cash back on office supplies, for example, or business lounge access at airports as a card perk.
Personal cards, on the other hand, offer rewards that cater to personal spending. So think cash back on groceries or points on department store shopping.
In terms of introductory bonuses, you can get them with both cards. But a business credit card might require you to spend more money to qualify for an initial bonus.
Card protections are also different. Personal cards are covered by the 2009 CARD Act but business cards aren’t. Business card issuers can extend CARD Act protections to cardmembers but they aren’t required to.
A business credit card can also have different fees and APRs compared to personal cards. For instance, you’re typically more likely to get an introductory rate on purchases and balance transfers with a personal card.
How to apply for a business credit card
Applying for a business credit card isn’t much different from applying for personal cards.
You just have to give the credit card company the right information, including:
- Your name
- Your business name
- Business and personal addresses
- Email and phone number
- Tax identification number (i.e. social security number or employer identification number)
- Industry and number of employees
- Revenue and number of years in business
And take note that you can apply for a business credit card even if your business isn’t profitable or hasn’t launched yet.
The credit card company will use your personal credit scores and income to approve you.
What’s the Verdict?
The Bank of America Business Advantage Cash Rewards credit card offers a competitive cash back rewards program for businesses that spend on travel and/or everyday purchases.
This card an ideal fit for Bank of America Preferred Rewards for Business members who want to earn even more cash back.
You may want to check out other business cash back cards if you’re looking for a higher cash back rate or a flat-rate of rewards on all purchases.
But overall, this card is worth considering if you want simple cash back rewards on business spending with no annual fee.