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

The Bank of America® Business Advantage Cash Rewards Mastercard® credit card doesn’t offer the biggest sign-up bonus or the highest rewards rates. For businesses that spend tens of thousands of dollars a year on gas and office supplies, however, it’s definitely worth considering, especially if they already do business with Bank of America®.

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

• Annual fee: $0.
• 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.
• Rewards:
  • 3% cash back on purchases at gas stations and office supply stores, up to $250,000 in combined purchases annually (then 1%).
  • 2% cash back on purchases at restaurants.
  • 1% cash back on all other purchases.
• Interest rate: 0% on Purchases for 9 billing cycles, and then the ongoing APR of 13.49% - 23.49% Variable APR.
• Foreign transaction fee: 3%

Why you might want this card

high annual cap on 3% categories

Some cash-back cards for small businesses offer up to 5% in rewards on certain categories, but the bonus applies to only  $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.

Of course, the high cap will benefit you only if your business spends thousands of dollars a month on gas and office supplies. If it doesn’t spend much in those categories, then this probably isn’t the card for you anyway.

Relationship rewards 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 Business Advantage Relationship Rewards 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 13.49% - 23.49% Variable APR.

Why you might want a different card

your spending doesn’t fit its 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/or office supply expenses. But if your business doesn’t run a fleet of vehicles and doesn’t go through a lot of paper and ink, you may be better off with a card with customizable bonus rewards, like 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 has an annual spending cap of $50,000 on those categories. After that, you earn 1%. The annual fee is $0.

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 up to $2,000: Earn a $500 cash bonus when you spend $5,000 in the first 3 months and $1,500 when you spend $50,000 in the first 6 months of opening your account. Limited Time Offer..
• 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, too.

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 huge potential for rewards with the $250,000 annual spending cap on its 3% bonus categories. But its value is mostly tied to how much you spend in those categories. For some businesses, it’ll a windfall. Others would be advised to look elsewhere.