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Bank of America Business Advantage Cash Rewards: Big Rewards for Big Spenders

Oct. 1, 2018
Business Credit Cards, Credit Cards
bank of america cash rewards for business
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The Bank of America® Business Advantage Cash Rewards Mastercard® credit card doesn’t offer the biggest sign-up bonus or the highest rewards rates. But for businesses that spend tens of thousands of dollars a month on gas and office supplies, it’s definitely worth considering.

Bank of America® Business Advantage Cash Rewards Mastercard® credit card: Benefits and basics

Bank of America® Business Advantage Cash Rewards Mastercard® credit card starts out with a decent sign-up bonus: Get a $200 statement credit when you make at least $500 in net purchases within 60 days of your account opening – with no annual fee, no cap on the amount of cash rewards you can earn and they don't expire.

For ongoing rewards, the card offers 3% cash back on purchases at gas stations and office supply stores, up to $250,000 in combined purchases annually (then 1%); 2% on purchases at restaurants; and 1% on all other purchases. On top of that, it has an annual fee of $0.

Let’s take a deeper look at what might make the Bank of America® Business Advantage Cash Rewards Mastercard® credit card useful:

high annual cap

While other business cards offer up to 5% in rewards on similar categories, most of them cap the bonus at $25,000 or $50,000 in annual spending. The Bank of America® Business Advantage Cash Rewards Mastercard® credit card, on the other hand, has an annual cap of $250,000 on combined gas station and office supply store purchases, after which you’ll earn 1% back. So if you have high expenses within its bonus categories, the Bank of America® Business Advantage Cash Rewards Mastercard® credit card can reward you more than flashier cards.

For example, if your business spends $10,000 per month at office supply stores, a card that offers 5% back up to $50,000 spent will reward you $3,200 for your purchases:

$50,000 x .05 = $2,500
$70,000 x .01 = $700
Total: $3,200

But if you use the Bank of America® Business Advantage Cash Rewards Mastercard® credit card, you’ll earn $3,600 in rewards over the course of the year:

$120,000 x .03 = $3,600

introductory apr deal

If you need to make a large purchase soon or expect to be cash-strapped for the next few months, the card’s introductory 0% APR period will give you some time to carry a balance interest-free: 0% on Purchases for 9 billing cycles, and then the ongoing APR of 13.24% - 23.24% Variable APR.

$0 annual fee

It can be hard to find a good business credit card without an annual fee. If you’re worried about your bottom line, keeping fees as low as possible is essential. This card’s $0 annual fee makes it all the more enticing.

Bank of America® Business Advantage Cash Rewards Mastercard® credit card: Pitfalls and other possibilities

While the Bank of America® Business Advantage Cash Rewards Mastercard® credit card has a high annual cap on bonus rewards spending, keep these factors in mind before you apply:

it HAS LIMITED categories

The Bank of America® Business Advantage Cash Rewards Mastercard® credit card is most useful for a relatively small subset of small-business owners — those who have high gas and office supply expenses. But if your business doesn’t run a fleet of vehicles and you don’t have an ongoing need for office supplies, you may be better off with the SimplyCash® Plus Business Credit Card from American Express.

The SimplyCash® Plus Business Credit Card from American Express not only offers 5% cash back at U.S. office supply stores and on wireless telephone services purchased directly from U.S. service providers, it also gives 3% cash back on a category of your choice from a list provided by American Express. The downside is that it has an annual spending cap of $50,000 on those categories. After that, you earn 1%.

The SimplyCash® Plus Business Credit Card from American Express also has a $0 annual fee.

it has a low sign-up bonus

Avoiding a credit card with an annual fee is generally regarded as a smart move. But sometimes a credit card with an annual fee gives you enough in rewards to pay for itself.

Is the Bank of America® Business Advantage Cash Rewards Mastercard® credit card right for you?

The Bank of America® Business Advantage Cash Rewards Mastercard® credit card is a decent credit card and offers huge potential for rewards with its $250,000 annual spending cap on its 3% bonus categories. But the card’s bonus categories may not offer much value to some business owners. Thus, it’s in your best interest to check out other business credit cards before you apply.