Finance4U

How Do Cash Back Credit Cards Work?


A cash back credit card lets you receive a certain percentage from your purchase transactions, which you can redeem in various ways, depending on what the credit card issuer offers. Cash back rates are usually either fixed on all business expenses or varied depending on spending categories.

Many business owners prefer cash back credit cards because the rewards value is easy to understand. For example, if your cash back credit card gives you 2% for all spending categories, you will get $2 back when you spend $100 on an eligible purchase. These rewards can add up over time, helping you save money on your purchases.

Key takeaways

  • Cash back, a type of reward that some credit cards (or even debit cards) offer when you make a purchase, is equivalent to a percentage of a purchase and awarded as a refund or a rebate.
  • You can use the cash back as a statement credit to reduce your credit card bill. Sometimes, card issuers allow you to redeem your cash back as a deposit to your bank account, as a check sent by mail, or to cover a portion of your purchases.
  • Some transactions may not earn cash back rewards, including balance transfers, cash advances, and ineligible purchases, such as lottery tickets and gambling-related transactions.
  • There are several cash back rewards programs: fixed-rate, category-based, customized, and rotating categories.

Types of Cash Back Rewards Programs

Credit card cash back rewards come in a few different types, each catering to different spending habits and preferences.

1. Fixed-rate Cash Back

A credit card with fixed-rate cash back offers the same cash back rate (usually ranges from 1% to 2%) on all purchases, regardless of expense category. This type of cash back rewards program, which is generally straightforward, is ideal for those who have varied expenses and don’t want to keep track of spending categories.

Here are our recommended business fixed-rate cash back credit cards.

American Express Blue Business Cash™ Card

The American Express Blue Business Cash™ Card






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

Those who want better cash back rewards



Apply Now

on The American Express Blue Business Cash™ Card’s secure website.

Intro APR

0% on purchases

Regular APR

18.49% – 26.49% Variable

Credit Needed

Good, Excellent

  • Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.
  • 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 18.49% – 26.49%, based on your creditworthiness and other factors as determined at the time of account opening. APRs will not exceed 29.99%
  • Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
  • From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power.
  • Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.
  • No Annual Fee
  • Terms Apply
Pros
  • 0% introductory annual percentage rate (APR)
  • Welcome bonus
  • Fixed rate rewards
  • $0 annual fee
Cons
  • Cash advance isn’t allowed
  • Charges foreign transaction fees
  • 2% cash back is capped at $50,000 in annual spending
  • Expanded buying power: Enjoy flexible buying power when your business needs it. Expanded buying power gives you the freedom to spend beyond your credit limit and help get business done. While the amount you can spend above your credit limit isn’t unlimited, it adjusts with your use of the card, your payment history, credit record, financial resources known to us, and other factors.
  • Car rental loss and damage insurance: As a Card Member, You can be covered for damage to or theft of a rental vehicle in a covered territory when you use your eligible card to reserve and pay for the entire rental and decline the collision damage waiver at the rental company counter.
Intro APR

0% on purchases

Regular APR

18.49% – 26.49% Variable

Credit Needed

Good, Excellent

  • Earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.
  • 0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 18.49% – 26.49%, based on your creditworthiness and other factors as determined at the time of account opening. APRs will not exceed 29.99%
  • Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
  • From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power.
  • Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.
  • No Annual Fee
  • Terms Apply
Pros
  • 0% introductory annual percentage rate (APR)
  • Welcome bonus
  • Fixed rate rewards
  • $0 annual fee
Cons
  • Cash advance isn’t allowed
  • Charges foreign transaction fees
  • 2% cash back is capped at $50,000 in annual spending
  • Expanded buying power: Enjoy flexible buying power when your business needs it. Expanded buying power gives you the freedom to spend beyond your credit limit and help get business done. While the amount you can spend above your credit limit isn’t unlimited, it adjusts with your use of the card, your payment history, credit record, financial resources known to us, and other factors.
  • Car rental loss and damage insurance: As a Card Member, You can be covered for damage to or theft of a rental vehicle in a covered territory when you use your eligible card to reserve and pay for the entire rental and decline the collision damage waiver at the rental company counter.

Card highlights:

  • Offers 2% cash back on the first $50,000 worth of purchases each calendar year, then 1% cash back after the cap is reached
  • Credits your cash back rewards to your billing statement automatically—no need to redeem manually
  • Charges $0 annual fee
  • Comes with 0% introductory APR on purchases for the first 12 months and a $500 statement credit when you spend at least $8,000 in the first three months after opening an account
  • Features Expanded Buying Power, letting you spend over your credit limit based on your card usage, credit score, payment behavior, and other financial considerations

PNC Cash Rewards® Visa Signature® Business Credit Card

PNC Cash Rewards® Visa Signature® Business Credit Card






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

PNC Bank account holders who want to earn fixed-rate cash back rewards



Apply Now

On PNC’s Secure Website

Intro APR

0% for 9 billing cycles

Regular APR

19.24% to 27.24% variable

Credit Needed

Good – Excellent

  • Earn $400 bonus after spending $3,000 in qualifying purchases within the first three billing cycles after opening an account
  • 0% APR on purchases for the first nine billing cycles after opening an account
  • Earn 1.5% cash back on all purchases
  • Does not charge an annual fee
Pros
  • Charges $0 annual fees
  • Welcome offer
  • Has a low regular APR for both purchases and balance transfers
Cons
  • Does not have a 0% introductory period on balance transfers
  • Requires having an active PNC Bank account to qualify for the card
  • Cash Flow Insight®: An online account management that is designed to help monitor and plan cash flow, send invoices through email, pay online, and manage payables digitally.
  • Travel accident insurance: You can obtain a maximum of $500,000 in principal sum coverage if the covered person’s injuries occurred while on a covered trip.
  • Cellphone protection: You are provided with up to $800 per claim with a maximum of two claims and $1,600 per twelve-month period in the event of a theft, damage, or involuntary and accidental parting of your cellphone.
Intro APR

0% for 9 billing cycles

Regular APR

19.24% to 27.24% variable

Credit Needed

Good – Excellent

  • Earn $400 bonus after spending $3,000 in qualifying purchases within the first three billing cycles after opening an account
  • 0% APR on purchases for the first nine billing cycles after opening an account
  • Earn 1.5% cash back on all purchases
  • Does not charge an annual fee
Pros
  • Charges $0 annual fees
  • Welcome offer
  • Has a low regular APR for both purchases and balance transfers
Cons
  • Does not have a 0% introductory period on balance transfers
  • Requires having an active PNC Bank account to qualify for the card
  • Cash Flow Insight®: An online account management that is designed to help monitor and plan cash flow, send invoices through email, pay online, and manage payables digitally.
  • Travel accident insurance: You can obtain a maximum of $500,000 in principal sum coverage if the covered person’s injuries occurred while on a covered trip.
  • Cellphone protection: You are provided with up to $800 per claim with a maximum of two claims and $1,600 per twelve-month period in the event of a theft, damage, or involuntary and accidental parting of your cellphone.

Card highlights:

  • Offers unlimited 1.5% cash back on all spending categories
  • Offers flexible redemption options—redeem your cash back as a statement credit, or deposit cash back into an eligible PNC Business checking or savings account
  • Lets you earn $400 bonus cash back when you spend $3,000 on the first three billing cycles after opening an account
  • Charges $0 annual fee
  • Comes with introductory 0% APR on purchases for the first nine billing cycles

Valley Visa® Secured Business Credit Card

Valley Visa® Secured Business Credit Card

Those who need a secured business credit card with fixed-rate cash back rewards



Apply Now

on Valley Visa® Secured Business Credit Card’s secure website.

Intro APR

0% introductory APR on purchases for first 6 months

Regular APR

16.20% to 27.75% variable

Credit Needed

Poor, Limited

  • 1% unlimited cash back on all purchases
Pros
  • Customers with limited credit history or credit issues can still qualify
  • Offers 0% APR on both purchases and balance transfers for six billing cycles
  • $0 annual fee
  • Offers 1% unlimited cash back on all purchases
Cons
  • Credit limits are up to $25,000 only
  • Requires a security deposit equivalent to 110% of requested credit limit
  • Up to 25 free employee cards only
  • Online account access
  • Immediate fraud protection alerts for suspected fraudulent transactions
  • Visa purchase alerts
  • The card reports account information and transactions to major credit bureaus each month, helping users build credit with responsible use
Intro APR

0% introductory APR on purchases for first 6 months

Regular APR

16.20% to 27.75% variable

Credit Needed

Poor, Limited

  • 1% unlimited cash back on all purchases
Pros
  • Customers with limited credit history or credit issues can still qualify
  • Offers 0% APR on both purchases and balance transfers for six billing cycles
  • $0 annual fee
  • Offers 1% unlimited cash back on all purchases
Cons
  • Credit limits are up to $25,000 only
  • Requires a security deposit equivalent to 110% of requested credit limit
  • Up to 25 free employee cards only
  • Online account access
  • Immediate fraud protection alerts for suspected fraudulent transactions
  • Visa purchase alerts
  • The card reports account information and transactions to major credit bureaus each month, helping users build credit with responsible use

Card highlights:

  • Offers unlimited 1% cash back on all purchases, regardless of spending categories
  • Comes with 0% introductory APR on purchases for first six months
  • Charges $0 annual fee
  • Requires a security deposit of 110% of your desired credit limit, up to $25,000
  • Has easy qualification requirements, even with poor or limited credit

2. Category-based Cash Back

With a category-based cash back program, you can earn different cash back rates on different spending categories. The cash back rate varies per card issuer—some offer premium rates on fuel purchases, while others offer higher cash back rates on travel. To get the best out of a category-based cash back credit card, it’s important to analyze your spending habits and get a card that offers lucrative rewards on where you spend the most.

The following are some of the best business credit cards with category-based cash back.

U.S. Bank Business Triple Cash Rewards World Elite™ Mastercard®

U.S. Bank Business Triple Cash Rewards World Elite Mastercard®






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

0% APR for 15 billing cycles



Apply Now

On US Bank’s Secure Website

Regular APR

19.24% – 28.24% (Variable)

Credit Needed

Excellent/Good

  • Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
  • Earn $500 in cash back. Just spend $4500 on the Account Owner’s card in the first 150 days of opening your account.
  • Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
  • 1% cash back on all other eligible net purchases.
  • Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
  • No limit on total cash back earned.
  • Rewards never expire.
  • Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
  • 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 19.24% – 28.24%.
  • No annual fee.
  • Great Offer from U.S. Bank, a 2022 World’s Most Ethical Company® – Ethisphere Institute, February 2022
  • Terms and conditions apply
  • Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
  • 0% APR applies to both purchases and balance transfers
  • Unlimited cash back rewards
  • $0 annual fee
Cons
  • Balance transfer fee is charged even during the introductory period
  • Intro APR doesn’t apply to cash advances
  • MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
  • Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
  • Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.
Regular APR

19.24% – 28.24% (Variable)

Credit Needed

Excellent/Good

  • Introducing the U.S. Bank Business Triple Cash Rewards World Elite Mastercard® the card that gives back on all your eligible business needs.
  • Earn $500 in cash back. Just spend $4500 on the Account Owner’s card in the first 150 days of opening your account.
  • Earn 3% cash back on eligible purchases at gas stations and EV charging stations, office supply stores, cell phone service providers and restaurants.
  • 1% cash back on all other eligible net purchases.
  • Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
  • No limit on total cash back earned.
  • Rewards never expire.
  • Earn an annual $100 statement credit for recurring software subscription expenses such as FreshBooks or quickbooks
  • 0% Intro APR on purchases and balance transfers for 15 billing cycles. After that, a variable APR currently 19.24% – 28.24%.
  • No annual fee.
  • Great Offer from U.S. Bank, a 2022 World’s Most Ethical Company® – Ethisphere Institute, February 2022
  • Terms and conditions apply
  • Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
Pros
  • 0% APR applies to both purchases and balance transfers
  • Unlimited cash back rewards
  • $0 annual fee
Cons
  • Balance transfer fee is charged even during the introductory period
  • Intro APR doesn’t apply to cash advances
  • MasterRental car rental collision damage waiver: When you rent a car using your U.S. Bank credit card, you’re covered in case of accident or theft on all rentals made worldwide. Coverage is primary, which means you won’t need to use your personal auto insurance or accept the insurance offered by the rental agency. Coverage is capped at $50,000.
  • Purchase assurance: U.S. Bank may repair or reimburse for items purchased with your U.S. Bank business credit card that are damaged or stolen within 90 days of purchase. Coverage is limited to $1,000 per loss, up to $25,000 per year, per account. Lost items and items left out of reach that others can see are not covered.
  • Extended warranty protection: U.S. Bank will double the manufacturer’s warranty up to an additional one year from the expiration of warranties of five years or less. An item with a six-month warranty would be backed for an additional six months, for example. The issuer will replace the item or reimburse you up to the amount charged on your U.S. Bank card up to $10,000.

Card highlights:

  • Offers 5% cash back on prepaid hotels and car rentals directly booked in the Travel Rewards Center, 3% cash back on eligible purchases at gas and electric vehicle (EV) charging stations, office supply stores, cellphone service providers, and restaurants, and 1% cash back on all other net purchases
  • Comes with 0% APR on both purchases and balance transfers for the first 15 billing cycles—this is one of the longest offers from a business rewards credit card
  • Charges $0 annual fee
  • Lets you earn a $100 annual statement credit for recurring software purchases and $500 cash back when you spend $4,500 in the first 150 days of card ownership
  • Features the ExtendPay® Plan, which lets you pay off your eligible balance over time without interest (only a small monthly fee)

Chase Ink Business Cash® Card

Ink Business Cash® Credit Card






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

Office-based businesses that want top cash back rewards



Apply Now

On Chase’s Secure Website

Intro APR

0% Intro APR on Purchases

Regular APR

18.49% – 24.49% Variable

Credit Needed

Good – Excellent

  • Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
  • Round-the-clock monitoring for unusual credit card purchases
  • With Zero Liability you won’t be held responsible for unauthorized charges made with your card or account information.
  • No Annual Fee
  • Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
  • 0% introductory APR for 12 months on purchases
  • Member FDIC
Pros
  • Top rewards for office supply spending
  • Introductory APR on purchases
  • Cash welcome offer
Cons
  • 0% APR doesn’t apply to balance transfers
  • High balance transfer fee of 5%
  • Designed mainly for office-oriented companies
  • Auto rental collision damage waiver: Coverage is primary—meaning it replaces any coverage your personal insurance might offer—when renting for business purposes. It provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most cars in the United States and abroad.
  • Purchase protection: Covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account per year.
  • Extended warranty protection: Extends the time period of the US manufacturer’s warranty by an additional year on eligible warranties of three years or fewer.
Intro APR

0% Intro APR on Purchases

Regular APR

18.49% – 24.49% Variable

Credit Needed

Good – Excellent

  • Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year
  • Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other purchases
  • Round-the-clock monitoring for unusual credit card purchases
  • With Zero Liability you won’t be held responsible for unauthorized charges made with your card or account information.
  • No Annual Fee
  • Redeem rewards for cash back, gift cards, travel and more through Chase Ultimate Rewards®.
  • 0% introductory APR for 12 months on purchases
  • Member FDIC
Pros
  • Top rewards for office supply spending
  • Introductory APR on purchases
  • Cash welcome offer
Cons
  • 0% APR doesn’t apply to balance transfers
  • High balance transfer fee of 5%
  • Designed mainly for office-oriented companies
  • Auto rental collision damage waiver: Coverage is primary—meaning it replaces any coverage your personal insurance might offer—when renting for business purposes. It provides reimbursement up to the actual cash value of the vehicle for theft and collision damage for most cars in the United States and abroad.
  • Purchase protection: Covers your new purchases for 120 days against damage or theft up to $10,000 per claim and $50,000 per account per year.
  • Extended warranty protection: Extends the time period of the US manufacturer’s warranty by an additional year on eligible warranties of three years or fewer.

Card highlights:

  • Offers 5% cash back on Lyft rides until March 2025, 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services, 2% cash back on the first $25,000 in combined purchases at gas stations and restaurants, and 1% cash back when the cap is met and on all other purchases
  • Gives you $750 cash back when you spend $6,000 in the first three months of card ownership
  • Lets you redeem your rewards for cash back, gift cards, travel, and more through Chase Ultimate Rewards®
  • Comes with $0 annual fee
  • Offers 0% APR on purchases for the first 12 billing cycles

Amazon Business Prime American Express Card

Amazon Business Prime American Express Card






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

5% back or 90-day repayment terms



Apply Now

on Amazon Business Prime American Express Card’s secure website.

Regular APR

19.49% – 27.49% Variable

Credit Needed

Good, Excellent

  • Eligible Prime Members get a $125 Amazon Gift Card upon approval for the Amazon Business Prime American Express Card.
  • Take advantage of 5% Back or 90 Day Terms on U.S. purchases at Amazon.com, Amazon Business, AWS and Whole Foods Market with an eligible Prime membership. You will earn 5% Back on the first $120,000 in purchases each calendar year, 1% Back thereafter
  • 2% Back at U.S. restaurants, U.S. gas stations, and on wireless telephone services purchased directly from U.S. service providers
  • 1% Back on other purchases
  • $0 Annual Fee
  • Back your business with the broad selection of Amazon and the service of American Express. Stay focused on your top business priorities, knowing we’re behind you.
  • With rewards that don’t expire, you choose when to redeem. Redeem rewards on millions of items during checkout at  Amazon.com and Amazon Business (U.S.) or apply towards a purchase on your statement.
  • Terms apply.
Pros
  • 5% back or 90-day terms
  • $0 annual and foreign transaction fees
Cons
  • No 0% introductory annual percentage rate (APR)
  • Only for Amazon Prime members
  • Return protection: American Express will provide a refund for an item purchased within 90 days that cannot be returned to the merchant. Refunds are limited to $300 per item, up to $1,000 per cardmember, per calendar year.
  • Baggage insurance: Get reimbursed for lost, damaged, or stolen luggage is damaged, lost, or stolen when you pay for your trip with your card, American Express will pay up to $1,250 per covered person for carry-on baggage and up to $500 for checked baggage.
  • Car rental insurance: Get coverage for theft or damage of a car rental, up to $50,000. Cardholders can waive the collision insurance offered by the auto rental agency.
Regular APR

19.49% – 27.49% Variable

Credit Needed

Good, Excellent

  • Eligible Prime Members get a $125 Amazon Gift Card upon approval for the Amazon Business Prime American Express Card.
  • Take advantage of 5% Back or 90 Day Terms on U.S. purchases at Amazon.com, Amazon Business, AWS and Whole Foods Market with an eligible Prime membership. You will earn 5% Back on the first $120,000 in purchases each calendar year, 1% Back thereafter
  • 2% Back at U.S. restaurants, U.S. gas stations, and on wireless telephone services purchased directly from U.S. service providers
  • 1% Back on other purchases
  • $0 Annual Fee
  • Back your business with the broad selection of Amazon and the service of American Express. Stay focused on your top business priorities, knowing we’re behind you.
  • With rewards that don’t expire, you choose when to redeem. Redeem rewards on millions of items during checkout at  Amazon.com and Amazon Business (U.S.) or apply towards a purchase on your statement.
  • Terms apply.
Pros
  • 5% back or 90-day terms
  • $0 annual and foreign transaction fees
Cons
  • No 0% introductory annual percentage rate (APR)
  • Only for Amazon Prime members
  • Return protection: American Express will provide a refund for an item purchased within 90 days that cannot be returned to the merchant. Refunds are limited to $300 per item, up to $1,000 per cardmember, per calendar year.
  • Baggage insurance: Get reimbursed for lost, damaged, or stolen luggage is damaged, lost, or stolen when you pay for your trip with your card, American Express will pay up to $1,250 per covered person for carry-on baggage and up to $500 for checked baggage.
  • Car rental insurance: Get coverage for theft or damage of a car rental, up to $50,000. Cardholders can waive the collision insurance offered by the auto rental agency.

Card highlights:

  • Offers 5% cash back or 90-day term on selected United States purchases at Amazon Business, Amazon Web Services (AWS), Amazon.com, and Whole Foods Market, 2% cash back at restaurants, gas stations, and wireless phone services purchased directly from service providers, and 1% cash back on all other purchases
  • Has $0 annual fee but requires an Amazon Prime membership to qualify
  • Gives you a $125 Amazon.com gift card upon card approval

3. Customized Categories Cash Back

Some cash back credit cards let you choose your preferred categories where you can earn higher cash back rates. Some also offer automatic premium rates on your top spending categories, so you won’t have to guess. The customized categories cash back rewards program is best for those who usually have particular expenses that don’t always fit the fixed categories of other rewards programs.

Here are our top-recommended business credit cards with customized categories cash back.

Bank of America® Business Advantage Customized Cash Rewards World Credit Card

Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

Those who want to earn 3% cash back in a spending category of their choice



Apply Now

on Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card’s secure website.

Intro APR

0%
9 billing cycles

Regular APR

18.49% – 28.49% Variable APR on purchases

  • Get a $300 online statement credit after you make at least $3,000 in purchases in the first 90 days of your account opening.
  • Earn 3% cash back in the category of your choice: gas stations & EV charging stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services, 2% cash back on dining purchases and 1% cash back on all other purchases.
  • You’ll earn 3% cash back on purchases in the category of your choice and 2% cash back on dining purchases on the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter.
  • You can earn up to 75% more cash back on every purchase, if you have a business checking account with Bank of America and qualify for Preferred Rewards for Business Platinum Honors tier. That means you could earn up to 5.25% cash back in your selected choice category and up to 3.5% cash back on dining purchases on the first $50,000 in those combined purchases each calendar year, and up to an unlimited 1.75% cash back on all other purchases.
  • No annual fee.
  • Choose how to redeem your cash rewards-as a deposit into your Bank of America® checking or savings account, as a card statement credit or as a check mailed to you. Cash rewards don’t expire as long as your account remains open.
  • To change your choice category for future purchases, you must go to the Mobile Banking app or Business Advantage 360, our small business online banking. You can change it once each calendar month, or make no change and it stays the same.
  • 0% Introductory APR on purchases for your first 9 billing cycles. After the intro APR offer ends, a Variable APR that’s currently 18.49% to 28.49% will apply.
  • Contactless Cards – The security of a chip card, with the convenience of a tap.
  • This offer may not be available if you leave this page or visit our website. You can take advantage of this offer when you apply now.
Pros
  • Offers flexible redemption options
  • Doesn’t charge annual fees
  • Welcome offer
Cons
  • Premium cash back rewards are capped on a selected spending category
  • Charges foreign transaction fees
  • Short introductory APR period
  • Access to a business credit score: Bank of America lets you view and monitor your Dun & Bradstreet business credit score for free through Business Advantage 360.
  • Zero liability protection: Stay protected against unauthorized transactions. Bank of America offers additional protections that cover certain purchases against loss, damage, theft, or fire and provides extended warranty coverage.
  • Fraud monitoring: Bank of America will block potential fraud if it detects abnormal patterns in your transactions. It’ll also notify you if it suspects any fraudulent activity.
Intro APR

0%
9 billing cycles

Regular APR

18.49% – 28.49% Variable APR on purchases

  • Get a $300 online statement credit after you make at least $3,000 in purchases in the first 90 days of your account opening.
  • Earn 3% cash back in the category of your choice: gas stations & EV charging stations (default), office supply stores, travel, TV/telecom & wireless, computer services or business consulting services, 2% cash back on dining purchases and 1% cash back on all other purchases.
  • You’ll earn 3% cash back on purchases in the category of your choice and 2% cash back on dining purchases on the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter.
  • You can earn up to 75% more cash back on every purchase, if you have a business checking account with Bank of America and qualify for Preferred Rewards for Business Platinum Honors tier. That means you could earn up to 5.25% cash back in your selected choice category and up to 3.5% cash back on dining purchases on the first $50,000 in those combined purchases each calendar year, and up to an unlimited 1.75% cash back on all other purchases.
  • No annual fee.
  • Choose how to redeem your cash rewards-as a deposit into your Bank of America® checking or savings account, as a card statement credit or as a check mailed to you. Cash rewards don’t expire as long as your account remains open.
  • To change your choice category for future purchases, you must go to the Mobile Banking app or Business Advantage 360, our small business online banking. You can change it once each calendar month, or make no change and it stays the same.
  • 0% Introductory APR on purchases for your first 9 billing cycles. After the intro APR offer ends, a Variable APR that’s currently 18.49% to 28.49% will apply.
  • Contactless Cards – The security of a chip card, with the convenience of a tap.
  • This offer may not be available if you leave this page or visit our website. You can take advantage of this offer when you apply now.
Pros
  • Offers flexible redemption options
  • Doesn’t charge annual fees
  • Welcome offer
Cons
  • Premium cash back rewards are capped on a selected spending category
  • Charges foreign transaction fees
  • Short introductory APR period
  • Access to a business credit score: Bank of America lets you view and monitor your Dun & Bradstreet business credit score for free through Business Advantage 360.
  • Zero liability protection: Stay protected against unauthorized transactions. Bank of America offers additional protections that cover certain purchases against loss, damage, theft, or fire and provides extended warranty coverage.
  • Fraud monitoring: Bank of America will block potential fraud if it detects abnormal patterns in your transactions. It’ll also notify you if it suspects any fraudulent activity.

Card highlights:

  • Offers 3% cash back on the category of your choice―choose from gas stations and EV charging stations, office supply stores, travel, TV/telecom and wireless, computer services, business consulting services―and 2% cash back on dining purchases on the first $50,000 in combined choice category/dining purchases each calendar year, then 1% cash back after meeting the cap and on all other purchases
  • Offers up to 75% more rewards for Bank of America business checking account holders who qualify for the Preferred Rewards for Business program
  • Lets you earn $300 online statement credit after spending at least $3,000 in net purchases within 90 days of opening an account
  • Allows you to redeem your cash back as a deposit to your Bank of America checking or savings account as an automatic credit to your bill or via check by mail
  • Charges $0 annual fee
  • Comes with 0% APR on purchases for the first nine billing cycles

U.S. Bank Business Leverage® Visa Signature® Card

U.S. Bank Business Leverage® Visa Signature® Card






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

Expenses that shift from month to month



Apply Now

On US Bank’s Secure Website

Regular APR

21.24% – 26.24% (Variable)

Credit Needed

Excellent/Good

  • Earn $750 in rewards when you spend $7,500 in eligible purchases on the account owners’ card within the first 120 days of opening your account.
  • Earn 2% back in the top two categories where you spend the most each month automatically.
  • 1% cash per dollar spent on all other eligible purchases.
  • Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
  • No annual fee for the first year and $95 thereafter.
  • No reward caps or limits on the total rewards your business can earn. Redeem for your choice of cash back, gift cards, merchandise and travel.
  • Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
  • Expense management tool VISA Spend Clarity is free to access and sync expenses, set employee card controls, generate reports, and more.
  • Great Offer from U.S. Bank, a 2022 World’s Most Ethical Company® – Ethisphere Institute, February 2022
  • Terms and conditions apply
Pros
  • Personalized ongoing rewards
  • Large welcome offer
  • Unlimited points
Cons
  • Requires excellent credit
  • No introductory 0% annual percentage rate (APR)
  • Rewards have expiration
  • Extended warranty protection: The issuer will double an original manufacturer’s warranty up to an additional one year for warranties of three years or less. The coverage is limited to $10,000 per item.
  • Purchase protection: Protection for items that are damaged or stolen within 90 days of purchase. Coverage is limited to $500 per claim and up to $50,000 per cardholder, per year.
Regular APR

21.24% – 26.24% (Variable)

Credit Needed

Excellent/Good

  • Earn $750 in rewards when you spend $7,500 in eligible purchases on the account owners’ card within the first 120 days of opening your account.
  • Earn 2% back in the top two categories where you spend the most each month automatically.
  • 1% cash per dollar spent on all other eligible purchases.
  • Earn 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center.
  • No annual fee for the first year and $95 thereafter.
  • No reward caps or limits on the total rewards your business can earn. Redeem for your choice of cash back, gift cards, merchandise and travel.
  • Pay over time by splitting eligible purchases of $100+ into equal monthly payments with U.S. Bank ExtendPay™ Plan.
  • Expense management tool VISA Spend Clarity is free to access and sync expenses, set employee card controls, generate reports, and more.
  • Great Offer from U.S. Bank, a 2022 World’s Most Ethical Company® – Ethisphere Institute, February 2022
  • Terms and conditions apply
Pros
  • Personalized ongoing rewards
  • Large welcome offer
  • Unlimited points
Cons
  • Requires excellent credit
  • No introductory 0% annual percentage rate (APR)
  • Rewards have expiration
  • Extended warranty protection: The issuer will double an original manufacturer’s warranty up to an additional one year for warranties of three years or less. The coverage is limited to $10,000 per item.
  • Purchase protection: Protection for items that are damaged or stolen within 90 days of purchase. Coverage is limited to $500 per claim and up to $50,000 per cardholder, per year.

Card highlights:

  • Lets you earn 2% cash back in the top two categories where you spend the most each month automatically, 5% cash back on prepaid hotels and car rentals booked directly in the Rewards Center, and 1% cash back on all other purchases
  • Offers $750 bonus cash back after spending $7,500 in eligible purchases within the first 120 days of opening an account
  • Lets you use your rewards for gift cards, merchandise rewards, travel, and cash back
  • Charges $0 annual fee for the first year, then $95 annually thereafter

4. Rotating Categories Cash Back

The rotating categories cash back is when premium categories, which typically include gas and restaurants, change every few months. Cardholders usually need to activate these categories to earn the premium rate. Also, there might be a cap on how much spending earns the higher rate.

The following cards are our recommended cash back credit cards with rotating categories.

Discover it® Cash Back Credit Card






Fit Small Business’s ratings are calculated by industry experts of our editorial team. Our grading rubric considers the type of credit card (such as cash back or travel), and the card’s rates, fees, rewards, and additional features like insurance.

Those who want double the cash back on your first year



Apply Now

On Discover’s Secure Website

Regular APR

17.24% to 28.24% variable

Credit Needed

Good – Excellent

  • 5% cash back in rotating categories for each quarter.
  • 1% cash back on all other purchases
Pros
  • Premium rewards on rotating bonus categories
  • Double your cash back for the first year
  • With 0% introductory APR on purchases and balance transfers
Cons
  • Bonus rewards are capped at $1,500
  • Bonus rewards need to be activated every quarter
  • Listed spending categories can be limiting to cardholders
  • Freeze it®: You can freeze your account on the Discover mobile app or website to prevent new purchases, cash advances, and balance transfers if you misplace your card
  • $0 fraud liability guarantee: Discover will not hold you responsible for unauthorized purchases made with your Discover it® Cash Back Credit Card.
  • Free FICO® credit score: Your FICO® credit score, key factors, and other credit information are available on Discover.com and your statement. Note that these are based on data from TransUnion® and may differ from other credit scores and other credit information provided by different bureaus.
  • Discover® identity alerts: You can get an alert from Discover on the following: Daily monitoring of your Experian® credit report and an alert when a new inquiry or account is listed on your report, daily monitoring of dark websites, and if your Social Security number is found on those sites.
Regular APR

17.24% to 28.24% variable

Credit Needed

Good – Excellent

  • 5% cash back in rotating categories for each quarter.
  • 1% cash back on all other purchases
Pros
  • Premium rewards on rotating bonus categories
  • Double your cash back for the first year
  • With 0% introductory APR on purchases and balance transfers
Cons
  • Bonus rewards are capped at $1,500
  • Bonus rewards need to be activated every quarter
  • Listed spending categories can be limiting to cardholders
  • Freeze it®: You can freeze your account on the Discover mobile app or website to prevent new purchases, cash advances, and balance transfers if you misplace your card
  • $0 fraud liability guarantee: Discover will not hold you responsible for unauthorized purchases made with your Discover it® Cash Back Credit Card.
  • Free FICO® credit score: Your FICO® credit score, key factors, and other credit information are available on Discover.com and your statement. Note that these are based on data from TransUnion® and may differ from other credit scores and other credit information provided by different bureaus.
  • Discover® identity alerts: You can get an alert from Discover on the following: Daily monitoring of your Experian® credit report and an alert when a new inquiry or account is listed on your report, daily monitoring of dark websites, and if your Social Security number is found on those sites.

Card highlights:

  • Offers 5% cash back in rotating categories each quarter on up to $1,500 in purchases (excluding Walmart and Target purchases) and 1% cash back on all other purchases. Note that activation is required. Here are the rotating categories:
    • January to March: Grocery stores, drug stores, and select streaming services (excluding Walmart and Target purchases)
    • April to June: Restaurants and wholesale clubs
    • July to September: Gas stations and digital wallets
    • October to December: Amazon.com and Target
  • Charges $0 annual fee
  • Comes with 0% APR on purchases for the first 15 months after opening an account
  • Gives an unlimited dollar-to-dollar match of all cash back you earn on your first year

How To Use Cash Back Rewards

There are several ways to use your cash back rewards. Typically, cash back can be credited to your statement balance, reducing your credit card bill. Some credit card companies allow you to redeem your cash back rewards as a deposit to your eligible bank account, check by mail, or for travel, gift cards, and merchandise. In other cases, you could also use your cash back to pay for your eligible purchases upon checkout.

The process for redeeming your cash back rewards also varies per card issuer; however, it usually involves the following steps:

  • Step 1: Log in to your online banking or rewards portal to check your rewards balance.
  • Step 2: Choose how you want to use your cash back from the options provided by the card issuer.
  • Step 3: Follow the steps provided on how to redeem your cash back based on your chosen redemption option.

How To Maximize the Benefits of Cash Back Credit Cards

To maximize the benefits of a cash back credit card, consider your spending habits when choosing which type of cash back rewards program works for you:

  • If you typically spend on varied expenses, it’s best to choose a fixed-rate cash back credit card so that you won’t have to monitor your expense categories.
  • If you know which spending categories you usually spend on the most, a category-based or customized cash back credit card may be the better fit.
  • If the offered rotating categories align with your regular expenses, then a rotating cash back credit card may work.

Aside from those, you should consider the following factors to ensure that you get the most out of your cash back credit card:

  • Redemption options: When deciding which cash back credit card is right for you, check the redemption options available. Some may want the rewards to be automatically credited to their billing statement, whereas others want to have the freedom to choose how to use their cash back (e.g., for travel, merchandise, and gift cards). Ensure that the options available align with your spending habits and preferences.
  • Fees: Consider the fees that come with the card, such as annual, balance transfer, foreign transaction, and late payment fees. See to it that the rewards you earn justify the cost of the card.
  • Introductory and ongoing APRs: If you need to make a significant purchase or consolidate your debt from other credit cards, a card with a 0% introductory APR is a good option as it can help you save on credit costs. Also, if you plan to carry a balance to the next billing cycle, choose a card that has a low ongoing APR.
  • Other value-adding features: Some credit cards offer more valuable features than others—like protection coverage, travel insurance, robust controls, and accounting integration. Determine which features you need and find a cash back credit card that offers them.

Bottom Line

Cash back credit cards are great for those wanting to get back a percentage of their purchases as rewards without having to calculate the rewards value. You can choose from fixed-rate, category-based, customized, and rotating cash back programs. Ensure you consider factors such as your spending habits, fees, APRs, redemption options, and other features when choosing the cash back credit card that’s right for you.

Share This :

Follow Us

Podcast

Subscribe Our Newsletter