Searching for the right business credit card for your business can be complicated and tiresome. Each card has its rewards, fees, and unique benefits, making it overwhelming to find out which is the best fit for your startup.
Here at Ramp, we understand what goes into a stellar corporate card and what new businesses should be on the lookout for during their search.
So if you’re curious about your options for business credit cards with no annual fees, we’ve got you covered. This article will dive into 7 popular business credit cards that don’t come with pesky annual fees. We’ll also review common business credit card rewards systems and what they have to offer growing companies.
What is a business credit card with no annual fee?
A business credit card with no annual fee is a credit card that doesn’t charge you for using the card. While you enjoy similar perks and benefits as cards with annual fees, you won’t have to make an annual payment to continue using it.
While most business credit cards with favorable rewards programs and perks have annual fees, the ones listed in this article don’t. Instead, we’ve compiled a list of cards that offer various benefits, such as points systems or cashback rewards.
Benefits of a business credit card with no annual fee
Businesses of all sizes can enjoy several benefits from business credit cards without an annual fee. It’s much easier for newer businesses to qualify for a no-annual-fee card. Many of these cards are made for companies with recently established credit, making them a great choice for new companies trying to find their footing.
Since the card doesn’t cost your business anything, getting and keeping a no-annual-fee card open is a great way to build a positive credit profile. You won’t need to worry about finding ways to offset the cost of the card, which could lead you into dire financial straits to get the most bang for your buck. Instead of paying to qualify for future savings, you can earn cashback on purchases immediately.
Rewards and discount options for business credit cards with no annual fees
Business credit cards with no annual fees will usually offer cardholders various rewards and discount options. Each card will come with different rewards you can earn and will allow you, as the cardholder, to redeem rewards based on the structure.
Don’t rush to spring for a card with a showy rewards system. When choosing a card for your business, take time to explore the type of rewards program from the card issuer. Compare this with your spending habits and the overall structure of the card to determine which card is the best fit for your business.
With all the different reward options on the market, you’re likely wondering how each credit card reward works. Here’s what you need to know about the types of credit card rewards offered and the benefits and drawbacks of each type.
Points systems
Business credit cards also offer points systems for cardholders to enjoy. These systems accumulate points based on the spend amount or spend percentage. For example, some cards may offer 1 point for every $1 you spend on everyday business purchases but 3 points for streaming services or rideshares. Each issuer's reward rates, conversion rates, and redemption options will vary based on the card.
With points systems, your business earns points instead of dollars. The value of your points depends on what you redeem them for. Imagine you’ve accumulated 40,000 points, and redeemed these for a $400 flight, then your points are worth one cent each. However, if you manage to search for another flight for $800, the point value has now doubled to two cents each. These points can be redeemed for various items, such as gas gift cards, travel purchases, merchandise, cashback, or even charitable donations.
Some cards give cardholders an additional way to earn bonus points through a welcome offer or sign-up bonus offer. After opening your account, you’ll need to meet a spending requirement in a predetermined time window. For example, spending $5,000 in 3 months after account opening could get you an additional 50,000 points.
To redeem your points, your card issuer will typically require you to enter their portal to view your redemption options. When redeeming points, make sure to review all your potential redemptions. Since the value can change based on the rewards, checking with your issuer before making any final purchases is best.
Discount & gift card systems
Many credit cards reward cardholders with discounts or gift cards at account opening. These systems discount either transaction or percentage discounts starting from certain monthly spend amounts. For example, your credit card may reward you with a $50 gift to a popular e-commerce site at account opening and then 5% on each purchase made from the site. Your card may also offer 1-3% on purchases from gas stations, restaurants, or office supply stores.
Cashback
Cashback rewards systems are fairly straightforward. Each time you use your card to make a purchase, you’ll get a percentage of the purchase back in cash. Let’s say you have a cashback rate of 1.5% on eligible purchases. A purchase of $100 puts $1.50 into your rewards account. Most cards allow you to redeem these rewards through a deposit to your bank account, a credit to your account balance, or pre-paid gift cards.
Many cashback credit cards may offer you benefits to enjoy additional savings. The card might offer you extended warranties, return guarantees, purchase protection, or the lowest-advertised price match. These extra perks vary between issuers, so check your card’s benefits guide for its terms.
While some credit cards offer a flat cashback rate on all purchases, others offer bonus categories with higher cashback rates. For instance, you might enjoy a cashback rate of 1% on all purchases but get 5% cashback on all travel purchases booked through their online portal.
Miles rewards
Miles rewards are similar to points systems, due to the similar nature of redemption. For each dollar you spend, you earn miles that work as travel currency. Miles-earning business credit cards allow companies to redeem miles for travel purchases like discounted flights, access to airport lounges, seat upgrades, hotel stays, and other travel expenses.
Frequent flyers often choose cards that offer additional miles in travel categories to get the most miles. When using miles to book a flight or hotel stay, you’ll need to sign in to your card issuer’s online portal. If you need to book with a different airline, some travel cards give cardholders the option to transfer their points to travel partners.
0% intro APR
Many cards with no annual fee also offer cardholders a low introductory APR rate, typically 0%. This introductory period can range from six to twenty-one months, but the most common period is 12 months from account opening. During this time, you won’t pay interest on any purchases or transactions you make.
Some no-annual-fee credit cards may also apply the 0% intro apr rate to balance transfers. Once the 0% intro APR period is over, you’ll be subject to a variable apr percentage from your card issuer.
Insurance coverage
Certain credit cards provide insurance coverage to car rentals if you use your credit card to book the rental. Instead of the basic insurance offered by the rental company, your card could give you access to more thorough coverage. They may also provide rideshare protection or reimbursements for delayed flights if they offer this coverage.
6 popular business credit card options with no annual fees
There are several options for no-annual-fee business credit cards. We’ll dive into the top 7 cards and what they offer small businesses looking to secure working capital.
1. Ramp
Ramp’s Visa charge card is in a category of its own. Instead of a card created to help businesses manage their debt, this card comes with tools to help small businesses manage their debt and increase their savings. Ramp’s smart charge card offers impressive real-time expense management to help you manage cash flow effectively. Small businesses, startups, and growing companies can all benefit from the streamlined processes Ramp offers.
Annual fee: $0
APR: N/A
Rewards: 1.5% cashback on everything
Benefits: Ramp’s 5-in-1 platform comes with corporate cards, expense management, bill payments, accounting integrations, and real-time reporting in one free and easy-to-use solution.
Additional features:
- Welcome offer of $250 upon approval, no minimum spend amount
- AI-powered savings insights identify where your money is going and how to save more
- Real-time expense management dashboard to control and analyze expenses
- Empower employees with pre-approved expenses and spend limits
- Streamline business workflows with Ramp’s seamless integration to over 100 popular applications
- Simplify bill pay by eliminating data entry with Ramp’s detail extraction tool
- Digitalize expense policies and leave Ramp’s software to enforce them automatically
2. U.S. Bank Business Triple Cash Rewards World Elite Mastercard
The Business Triple Cash Rewards World Elite Mastercard from U.S Bank initially seems impressive. The card offers generous cashback opportunities ranging from 1%-5% on purchases like hotels and car rentals, gas stations and EV charging stations, and cell phone service providers. While the 0% APR and $0 annual fee are nice, the rewards categories are limited and may not offer much for how your business spends money. Foreign transaction and balance transfer fees also leave much desired for small businesses looking to scale internationally.
Annual fee: $0
APR: 0% Intro APR on purchases, transactions and balance transfers for 15 billing cycles, then a variable APR of 16.99%-25.99%
Rewards:
- 5% cashback on car rentals and prepaid hotels booked in the U.S Bank Travel Rewards Center
- 3% cashback on eligible purchases at gas/EV charging stations, office supply stores, cell phone service providers and restaurants
- 1% cashback on all other eligible business purchases
Additional features: Welcome offer of $500 cashback after spending $4,500 in the first 150 days of account opening
3. Chase Ink Business Unlimited
The Chase Ink Business Unlimited credit card offers a 0% APR introductory period,$0 annual fee, and unlimited cashback rewards of 1.5%. However, the lack of cashback bonus categories and high foreign transaction fees may cause problems down the line. In addition, the seemingly “generous” welcome offer may have small companies spending more rather than saving in the early days of this card.
Annual fee: $0
APR: 0% Intro APR offer on purchases for 12 months, then variable APR ranging from 16.24% - 22.24%
Rewards:
- Unlimited 1.5% cashback on all business purchases, with 1.5 points earned for each dollar spent
- Redeem rewards for gift cards, cash deposits, or travel rewards in Chase Ultimate Rewards center
Additional features: Welcome offer of $750 bonus cashback after you spend $7,500 on purchases in the first 3 months after account opening
4. Bank of America Business Advantage Cash Rewards Mastercard
Various cashback options come with the Business Advantage Cash Rewards Mastercard. Still, not everyone has the opportunity to get the most out of this card. Cardholders who don’t have an existing account with Bank of America will earn less than those who do. The capped spending of bonus rewards will likely have big spenders looking to other cards with more cashback opportunities.
Annual fee: $0
APR: 0% introductory APR for your first 9 billing cycles, then variable APR of 15.24% - 25.24% will apply
Rewards:
- 3% cashback in the category of your choice
- 2% cashback on dining purchases
- 1% cashback on all other qualifying purchases
Additional features: Welcome bonus of $300 statement credit online after making $3,000 in net purchases during the first 90 days after account opening
5. Chase Ink Business Cash
Chase’s Ink Business Cash credit card offers cashback options for its cardholders. Although the card has potential, its welcome offer encourages businesses to spend more without offering savings insights.
Annual fee: $0
APR: 0% introductory APR period of 12 months for purchases , then variable APR of 16.24% - 22.24%
Rewards:
- 5% cashback on your first $25,000 spent in combined purchases each account anniversary year at office supply stores and internet, cable, and phone services
- 2% cashback on on the first $25,000 spent in combined purchases at gas stations and restaurants
- 1% cashback on all other business purchases
Additional features: Welcome offer of $750 bonus cashback after spending $7,500 in purchases within 3 months of account opening
6. PNC Cash Rewards Visa Signature
The Cash Rewards Visa Signature card by PNC is a decent choice for low spenders, but businesses that spend more than $8,000 a month may find the remaining 1% cashback rewards unimpressive.
Annual fee: $0
APR: 0% intro APR only on balance transfers for 12 months, variable APR of 16.24% - 27.24% for all purchases
Rewards:
- 4% on gas station purchases
- 3% on dining purchases at restaurants and fast food locations
- 2% on grocery store purchases (Cashback capped at $8,000 for all of the above categories)
- 1% cashback on all other purchases
Get card smart
Business owners shouldn’t get distracted by seemingly impressive rewards structures or lucrative cashback opportunities. Your business needs a card that promotes employee empowerment with the freedom to make purchases as needed. A corporate rewards card with a clear cashback structure will improve the financial stability of your company and contribute towards future growth.
Picking the right business credit card involves taking a detailed look at your business needs. Ramp helps businesses through spend management software and real-time insights that show your business's pain points.
Learn more about how Ramp can help you scale your business.
Stefanie Gordon is a Senior Content Marketing Manager at Ramp. A former financial journalist and content strategist, she is excited to help Ramp develop new, engaging content.
FAQs
APR is the annual percentage rate or the yearly interest charged on loans. You pay this rate if you carry a balance on your credit card. If you fully pay your monthly credit card statement, you avoid paying this rate.
Business credit cards generally see lower interest rates than consumer credit cards. The interest rates range from 15.97 to 23.27 percent. Banks charge businesses various interest rates based on the creditworthiness of your business.
Business credit cards generally favor businesses with either good or excellent credit scores. The best business credit cards will require a score of 670-700 or higher.
Each small business owner will need to consider several factors to decide what the best small business credit card is for them. For example, they should think about the kind of business purchases they make, the annual fee of the card, introductory and variable APR, rewards structure, their business’ credit history, whether the card issuer offers free cards for employees, and if the card offers expense management tools.
Opting for a business credit card with no annual fee may be better for your business if the rewards align your business needs. However, there are times when you may choose a card with an annual fee if it gets your business better rewards, such as a higher cashback percentage.
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