TD Business Solutions Credit Card Review: Cash Back on Telecom and Dining
A cash back rewards card can be a helpful money-saving tool when you run a business. When comparing cards, it's all about finding one that fits your business's spending style.
The TD Business Solutions Credit Card is designed for businesses that primarily spend on telecom, dining, and gas. This card offers tiered cash back rewards with no annual fee.
In addition to cash back, this card also offers a low introductory APR on purchases. That could be handy if you're planning to buy an expensive piece of equipment or make another large purchase you plan to pay off over time.
If you've been shopping around for a business cash rewards card,our review breaks down what the TD Business Solutions Credit Card brings to the table.
TD Business Solutions Credit Card Pros & Cons
Earn Cash Back Everywhere You Spend
The TD Business Solutions Credit Card features three rewards tiers for earning cash back:
- Earn 3% cash back on phone, internet and cable services
- Earn 2% cash back on dining and restaurants
- Earn 1% cash back on all other purchases
Cash back rewards are unlimited so if you spend more, you earn more rewards.
For example, say you typically spend $15,000 a year on telecom. Those purchases would earn $450 in cash back rewards.
Add in $10,000 for restaurants and dining purchases and $10,000 in miscellaneous spending and you'd earn $750 in cash back for the year.
Rewards are earned as points that can be redeemed for cash back. That helps keep things simple when you're ready to redeem.
Additionally, the TD Business Solutions Credit Card usually offers an introductory welcome bonus.
Qualifying for the bonus means meeting the minimum spending requirement.
But if you can do so, this is a simple way to amplify your cash back earnings during your first year of card membership.
Low APR on Purchases
One thing you don't always find with business credit cards is an introductory APR promotion.
Instead, the regular variable APR kicks in for purchases right away.
This card is different, in that you can take advantage of a low introductory APR on purchases.
So if you need to purchase inventory or supplies, pay the rent or utilities or buy a new copy machine, you could charge it to your card then pay it off over time without interest piling up.
One thing to note is that this offer doesn't extend to balance transfers.
If you're interested in transferring a balance from one business credit card to another, you'll need to shop around for other options.
Other Card Features and Benefits
The TD Business Solutions Credit Card is primarily a cash back rewards card. But there are a few other card features you might appreciate, including:
- Digital wallet capabilities
- Instant card replacement if your card is lost or stolen
- Visa Zero Liability guarantee
- Contactless payments
- Credit card alerts
Compared to other small business credit cards, there aren't a lot of extra bells and whistles.
Bu,t if earning cash back on business purchases is your main concern, that might not matter too much.
The TD Business Solutions Credit Card doesn't charge a pile of fees.
There's no annual fee and no foreign transaction fees.
That's helpful if you travel outside the U.S. for business and want to take along a cash back card for dining and gas purchases.
The other fees, i.e. cash advance, balance transfer, late payment, etc., are typical of what you'll find with other business credit cards.
The regular variable APRs for purchases and balance transfers are also similar to what you'll get with other cards, based on creditworthiness.
Compared to Other Business Credit Cards
The TD Business Solutions Credit Card is geared toward small to midsize businesses that want a simplified option for earning cash back rewards.
But there are a few other cards you may want to consider as well:
Chase Ink Business Cash
The card also offers tiered rewards but they work slightly differently. With this card, you can earn 5% cash back on the first $25,000 in combined purchases at office supply stores and on internet, cable and phone services each year.
Next, you can earn 2% cash back on the first $25,000 in combined gas station and dining purchases each year. All other purchases earn 1% cash back.
This card could be a better fit if your business spends enough to hit the $25,000 cap in the bonus cash back categories each year. Rewards can be redeemed for cash back, gift cards, travel and more through Chase Ultimate Rewards.
There's no annual fee and employee cards are free.
American Express Blue Business Cash
The card keeps things simple, allowing you to earn 2% cash back on the first $50,000 in eligible purchases per calendar year. After that, you continue earning 1% cash back until your next account year.
Rewards redemption is also simple. Cash back earned with this card is automatically applied as a statement credit. With Expanded Buying Power, you have the ability to make purchases over your card limit if necessary.
This card has no annual fee (see Rates & Fees; terms apply) and employee cards are free. Like the TD Business Solutions Credit Card, you also enjoy an introductory APR on purchases.
*See Rates & Fees. Terms apply.
Capital One Spark Cash Select for Business
The card could be a good fit if you want to earn a flat rewards rate on every purchase.
This card offers 1.5% cash back on eligible purchases, with no cap on the amount of cash back you can earn. There's no annual fee and no foreign transaction fee.
Cash back can be redeemed at any time and in any amount.
Business vs. Personal Cards
Business credit cards and personal cards can both be used to make purchases and earn rewards.
With a business credit card, you're most likely to be rewarded based on how a business typically spends. The TD Business Solutions Credit Card, for example, offers the most cash back when you spend on phone, internet and cable services.
A personal credit card, on the other hand, typically tailors rewards categories to how an everyday person spends money. So you might earn the most rewards for booking personal travel, picking up groceries or going out to dinner.
There can also be a difference in your card terms. Business credit cards and personal credit cards don't always align in terms of the fees they charge or the APR you might pay.
A personal credit card can offer more in the way of consumer protections compared to a business credit card. That's because they're covered by the 2009 CARD Act, while business cards are not.
Once you open a personal credit card account, it'll show up on your personal credit history. A business credit card, however, is typically reported to the business credit bureaus instead.
The exception may be if you signed a personal guarantee for a business credit card and defaulted. Personal guarantees mean you agree to be personally responsible for the business debt.
How to apply for a business credit card
If you'd like to apply for the TD Business Solutions Credit Card, you can do so online.
To complete the application, you'll need to give TD Bank the relevant information, including:
- Your name
- The name of your business if it's different from your name
- Your personal and business addresses
- Your phone number and email information
- Social security number and/or employer identification number (EIN)
- Time in business
- Number of employees
- Estimate of yearly revenue
- Industry or business type
If you have a newer business, you may be worried about applying for a business credit card when you don't have consistent revenues yet.
The good news:
It's possible to get approved for a business credit card even when your venture is new.
Credit card companies will look at your personal credit history and financials to decide whether to approve.
But again, keep in mind that you may have to sign a personal guarantee when using your personal credit to get approved.
What’s the Verdict?
The TD Business Solutions Credit Card could be a good choice if you want a basic cash back rewards card with no annual fee.
If you already do your business or personal banking with TD Bank, applying for the card could make sense.
On the other hand:
So whether another card is the better choice depends on how frequently you spend and what your business charges most often.
Overall, the TD Business Solutions Credit Card could be a go-to option if you spend the most on telecom services.
If you're considering this card for the introductory APR on purchases, remember to plan ahead to pay the balance in full before the promotional period ends to avoid interest charges.