How Valuable is a Cashback Card for Your Business

By 2024, the global cashback industry is expected to be worth in excess of $200 billion a year. However, a lot of businesses are still failing to leverage cashback cards.

Cashback cards enable you to accumulate money whenever you make a purchase, which adds up considerably over time. Some cards offer better rates than others, while some come with different perks.

Below, we’ll explore just how beneficial cashback cards are and give you some tips on what to look for when applying for a cashback card for your business.

What is a Business Cashback Card

With a business cashback card, a percentage of your spending is returned back to your card, which means your next purchase will be discounted. Of course, you can opt to accumulate the cashback and then use it on a bigger purchase in the future.

What Are Some of the Best Business Credit Cards for Cashback

There are lots of great cashback cards for businesses today. A lot of business owners would agree that Juni offers the best business credit cards, and so you’ll be pleased to know that they also have a cashback card in their range.

For your first 30 days, you’ll receive 2% cashback. After this, you’ll move on to a rate of 1%. So, if you buy a new business vehicle for £30,000, you’ll get £600 back in the first 30 days or £300 back from then onwards. All of this adds up and can be used on other purchases for your business.

There are a number of other cashback cards to consider. The Barclaycard Select Cashback credit card comes with 1% unlimited cashback, as does the capitalontap credit card. The RBS Business Plus credit card offers up to 2% cashback, yet there’s a yearly fee of £70 per card. The Santander Business Cashback credit card costs £30 per year and offers 1% unlimited cashback.

How Valuable is a Cashback Card for Your Business

As you can see from the paragraph above, the cashback you receive varies by card, although it tends to be between 1% and 2%. You may think that this is a minuscule refund, but it adds up over time.

We advise looking at your books for the past month and again for the past year. Look at everything you have spent. Calculate how much you would have received back if using a cashback card. Wouldn’t you like to have this extra money in your bank account?

When you recoup money via a cashback program, you’ll directly offset a portion of the expenditures at your business. This money goes straight to your bottom line, without the need for extra costs or work on your behalf.

A Cashback Card Could Enable You to Purchase Better-quality Equipment

A cashback card may also enable you to enhance the quality of your business by purchasing better-quality equipment. For example, let’s say that you have a budget of £20,000 for a new machine for your factory. However, when you factor in that you’ll be getting some of this money back as cashback, it affords you the ability to stretch your budget slightly.

Leveraging These Benefits by Choosing the Best Cashback Card for Your Business

To make the most of the benefits mentioned above, you must choose a cashback card with care. Here are some of the main things you need to consider:

  • Minimum purchases – Some cashback cards require a minimum spend before you’re eligible for cashback. This isn’t typically a problem for small business owners and entrepreneurs with a high volume of company expenses. However, if the monthly minimum is higher than what you typically spend, this sort of card isn’t going to be right for you. You’ll want to make sure you’re actually getting cashback every month after all. 
  • Cashback rate – Of course, the cashback rate is critical when deciding what credit card to choose. As explained earlier, some businesses have 1% rates, some have 2% rates, and you may even be able to find some with higher rates. Rates can change over time as well, so you may start off on a promotional rate and then move on to a permanent rate. Some credit card companies also offer different rates based on the purchase you’re making, so always make sure you read the terms and conditions.
  • Annual fee – Some credit cards require an annual fee to be paid. Others are free to use. If you choose a card with an annual fee, you need to ensure the level of cashback you’ll receive on your purchases justifies the annual fee you need to pay. So, if your purchases last year would have only given you a cashback of £90, there’s really no point choosing a credit card with an annual fee of £100, is there? 
  • Bonuses – A lot of cashback cards come with a number of other bonuses as well, on top of the cashback. For example, you may get discounts at certain stores, or you may get access to other financial perks. Some may offer interest-free purchases for a specific period of time. When looking at the bonuses being offered, make sure they align with your business and the sort of purchases you typically make.
  • Cap-on rewards – Most of the cashback credit cards available today provide cashback on all eligible purchases without a spending limit. Nevertheless, there are some cards that’ll only give you cashback on purchases up to a specific amount of spending. Once you reach this limit, your benefits are reduced, or you don’t receive any cashback at all. For example, you may find a cashback card that only gives you 2% cash back on purchases up to £10,000. This could seriously limit your earning potential if you often make substantial purchases at your business. 
  • Spending categories – The awards on purchases differ by cashback program. Some cashback cards offer complete reimbursement on any costs relating to your company. Others offer different cashback levels for different kinds of purchases. This is why you need to carefully assess the terms and conditions so that you understand the rewards before you sign up.

Tips on Using Your Business Cashback Card

Now that you know why cashback cards make sense for businesses of all sizes across all industries, let’s take a look at some tips to help you get started when using this card:

Use Your Cashback Card for all Business Spending, but Don’t Overspend

Use your cashback card to make all purchases that you’d typically make at your business. Don’t start making extra purchases!

Sometimes, people can fall into the trap of overspending to get cashback. Remember, this is ultimately going to cost more money and result in you spending money you didn’t intend to.

So, continue your typical spending habits but use your cashback card instead to ensure you’re getting money back whenever you make a purchase.

Don’t Withdraw Money or Borrow on these Cards

Business cashback cards are a tool to get you rewards. They’re designed to be used like business debit cards, rather than for borrowing money or withdrawing cash.

If you need to borrow funds as well, you’ll be better off looking for a business credit card with the lowest interest rates. This will save you more money in the long run. Some business credit cards come with promotions where you get an interest-free period.

In terms of withdrawing cash, you’ll typically be charged a fee and interest, even if you repay the card in full each month. Therefore, you’ll effectively be wiping out the cashback you make.

Establish a Direct Debit and Pay the Card in Full

Finally, we recommend paying your cashback credit card in full every month. If you don’t, you’ll be charged interest. This interest is essentially going to wipe out all of the money you have accumulated in rewards each month, so you’re defeating the purpose of using a rewards card, to begin with.

A lot of businesses prefer to have a cashback card and a low-interest credit card, and then they’ll make purchases accordingly based on their needs and whether or not they can repay in full within a month.

Make Your Money go Further with a Business Cashback Card

No matter what type of business you run, a cashback card can help you to unlock more funds so that you can boost your bottom line. All companies need supplies and services to run effectively, so why not get a little bit of your expenditure back every time?


Cashback cards can indeed be valuable tools for businesses seeking to cut costs, streamline expenses, and enjoy additional perks. However, their true worth depends on your business’s unique circumstances and financial practices. Before choosing a cashback card, carefully evaluate the benefits, drawbacks, and suitability for your specific needs. When used wisely, a cashback card can be a valuable asset that contributes to your business’s financial success.

Author bio:

Kerry Leigh Harrison has over 11+ years of experience as a content writer. She graduated from university with a First-Class Hons Degree in Multimedia Journalism. In her spare time, she enjoys attending sports and music events.