Bank of America Business Advantage Cash Rewards Review: Great for Some, but Not All

After undergoing a revamp in April 2019, the Bank of America® Business Advantage Cash Rewards Mastercard® credit card offers bonus cash-back rewards that you can customize — but a lot less spending is now eligible for the card's higher rewards rates.

Even so, if your business's expenses line up with its bonus categories, it's worth a look, especially if you already do business with Bank of America®.

Bank of America® Business Advantage Cash Rewards Mastercard® credit card: Basics

• Card type: Small business.

• Annual fee: $0.

• Sign-up bonus: Get a $300 statement credit when you make at least $3,000 in net purchases within 90 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.

• Rewards:

  • 3% cash back in a category you choose from a list of six: gas stations; office supply stores; travel; television/telecom and wireless;  computer services; or business consulting services.

  • 2% cash back on purchases at restaurants.

  • The 3% and 2% rates are good on up to $50,000 a year in combined spending on your chosen category and at restaurants.

  • 1% cash back on all other purchases.

• Interest rate: 0% on Purchases for 9 billing cycles, and then the ongoing APR of 14.49% - 24.49% Variable APR.

• Foreign transaction fee: 3%

Why you might want this card

Flexible 3% categories

Some cash-back cards for small businesses offer up to 5% in rewards on certain categories — but those categories are set by the issuer and might not match your spending. Prior to April 2019, this card had the same problem: It offered 3% cash back at gas stations and office supply stores. After an overhaul, the Bank of America® Business Advantage Cash Rewards Mastercard® credit card lets you choose your own 3% category from a list of common expenses.

Preferred Rewards for Business for bank customers

If your business keeps its deposit accounts at Bank of America®, and those accounts total more than $20,000, you may qualify for the bank's Preferred Rewards for Business program, which gives you bonuses on the rewards you earn with this card. Your status level in the program is determined by the average balance in your deposit accounts over a three-month period:

introductory 0% apr PERIOD

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 14.49% - 24.49% Variable APR.

Why you might want a different card

there's a Relatively low cap on bonus rewards

Under this card's previous rewards structure, you earned 3% cash back on up to $250,000 a year in combined spending at gas stations and office supply stores, plus unlimited 2% cash back at restaurants. Now the issuer has put a $50,000-a-year combined cap on both the 3% and 2% rewards. Depending on your spending, that could sharply limit your bonus rewards. If you run a fleet of vehicles or go through a ton of office supplies, this card is a shadow of its former self.

A different rewards structure may be a better fit

Customizable bonus rewards are only as good as your choices. If the Bank of America® Business Advantage Cash Rewards Mastercard® credit card doesn't suit your needs, take a look at the SimplyCash® Plus Business Credit Card from American Express. It offers 5% cash back at U.S. office supply stores and on wireless telephone services purchased directly from U.S. service providers. Plus, it pays 3% cash back on a category of your choice from a list provided by American Express. The downside is that it, too, has an annual spending cap of $50,000 on those categories. After that, you earn 1%. The annual fee is $0. Terms apply.

Your spending is all over the map

Many businesses do the bulk of their spending on inventory or other expenses that don't fall neatly into credit card issuers' bonus categories. If that's you, consider a card that pays a flat cash-back rate on all purchases. Capital One's Spark-branded business cards do this, and the issuer offers versions both with and without an annual fee. (The fee gets you richer rewards):

• For an annual fee of $0 for the first year, then $95: The Capital One® Spark® Cash for Business pays an unlimited 2% cash back on all purchases. It offers a nice sign-up bonus: Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening.

• For a $0 annual fee: The Capital One® Spark® Cash Select for Business pays unlimited 1.5% cash back on all purchases. Its sign-up bonus: Plus, a one-time $200 cash bonus once you spend $3,000 on purchases within 3 months from account opening.

If you spend at least $19,000 a year, the higher rewards on the annual-fee version will make up for the fee.

You want a bigger sign-up bonus

The Ink Business Unlimited℠ Credit Card offers an outstanding sign-up bonus for a card with a $0 annual fee: Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening. This card pays an unlimited 1.5% cash back on all purchases and comes with a nice 0% intro APR period.

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 offers the potential for handsome rewards with its customizable 3% bonus category. But its value is mostly tied to how much you spend in those categories. For some businesses, it'll be a windfall. Others would be advised to look elsewhere.