About Bank of America Business Advantage Cash Rewards Mastercard

By J.R. Duren
HighYa Staff Published on: Jul 25, 2018

The Bank of America Business Advantage Cash Rewards is Bank of America’s premier business rewards credit card, offering the typical variety of rewards including a cash sign-up bonus as well as ongoing spending rewards.

The card is one of three different business credit cards that B of A provides, the other two being the Business Advantage Travel Rewards and the Platinum Visa Business.

The business credit card industry is a competitive part of the financial products world. As a business owner, it’s important to understand what a particular business offers and how those various benefits and rewards fit into your company’s spending habits.

In this review, we’re going to cover what the Business Advantage Cash Rewards offers in the way of cash bonuses, as well as the business-specific tools it provides. We’ll also talk about the fees you can expect to pay with this card if you carry a balance or submit a late payment.

After that, we’ve provided a comparison chart to show you how the Business Advantage Cash Rewards compares to other business credit cards based on sign-up bonuses, yearly rewards and APR.

Rewards

The Business Advantage Cash Rewards has two big cash rewards structures: a sign-up bonus and ongoing cash rewards. These two types of rewards are commonplace. You see some variation in the sign-up bonuses because some cards give you points you can use for booking travel, but, in most cases, the sign-up bonus is cash balance.

Sign-Up Bonus

You can earn $200 in cash rewards if you can spend $500 in the first 90 days of owning this card. There’s a very good chance you’ll hit this requirement within the first couple of weeks, if not days. It will take 10-12 weeks for the bonus to show up in your rewards balance, a balance that you can view when you log into your Bank of America account.

The U.S. Bank Business Edge provides a $200 bonus, the Chase Ink Business Unlimited and the American Express Business gold provide a bonus worth $500 and the Chase Ink Business Preferred has a bonus of 80,000 points you can redeem for $800 or various travel options.

You can redeem your cash rewards in increments of $25.

Points on Purchases

The second way you can earn points is by using your card to make purchases. Bank of America will reward you for those purchases by giving you small amounts of cash back based on how much you spend and what you buy.

Here’s a quick list of the way the card’s per-dollar awards work:

  • 3% on gas and office supply stores
  • 2% on restaurants
  • 1% on everything else

For the average American household, those percentages could earn you about $322 a year in rewards. However, your business isn’t an average household. You have specific expenses based on the types of goods or services you offer.

If you’re heavy on gas and office supplies, this card would make sense for you. If you spend $10,000 a year in that category, then you’ll earn $300 in rewards. While it’s certainly not a staggering number, a dollar amount like that could provide small employee incentives or make a nice prize for a sales goal.

Likewise, if your company does a lot of pitches and meetings at restaurants, then the 2% rewards is lucrative for you. A $10,000 restaurant bill at the end of the year can earn you another $200.

When you add in the 1% bonus on “everything else” purchases, there’s a good chance you could earn at least $600 a year from this card’s rewards.

Benefits

One of the main benefits you get with this card is a tiered series of rewards perks that increase as you spend more on your card. The program is called the Business Advantage Relationship Rewards and boosts the rewards you earn once you spend at least $20,000 in a year.

If you can hit that, your account is upgraded to Gold status, in which the main benefit is a 25% boost to the rewards you earn once you hit the spending requirement. So, if you were earning $600 in rewards, Gold status could boost that to $750. Other benefits include:

  • 0.05% cash rewards on B of A merchant processing services
  • Interest rate discounts on small business financing and business auto loans
  • 0.25% discount on commercial real estate loans
  • 5% boost to interest rate on business savings accounts

The next tier is $50,000 of spending, at which point you’ll get Platinum status. This designation earns you a 50% bonus on your rewards ($600 becomes $900) and a host of other rate-related incentives, including:

  • 0.10% cash rewards on B of A merchant processing services
  • Interest rate discounts on small business financing and business auto loans
  • 0.35% discount on commercial real estate loans
  • 10% boost to interest rate on business savings accounts

If you can spend at least $100,000 year on the Business Advantage Cash Rewards card, then you’ll achieve Platinum Honors status and earn a 75% bonus on the points you rack up after that -- $600 in rewards becomes $1,050. Like the other tiers listed above, you get a mix of discounts and boosts on interest rates:

  • 0.15% cash rewards on B of A merchant processing services
  • Interest rate discounts on small business financing and business auto loans
  • 0.50% discount on commercial real estate loans
  • 20% boost to interest rate on business savings accounts

Based on our research of these tiers, we believe they present tremendous value for your business if you can spend enough to get into the Gold, Platinum or Platinum Honors levels.

Rates and Fees

This credit card has an APR range of 12.99%-22.99% for purchases and balance transfers. The lowest interest rate will be given to you if, among other things, you have excellent credit scores (720+).

Cash advances have an APR of 25.99%.

The three main fees you’ll pay are a 4% cash advance fee, a 4% balance transfer fee and a 3% foreign transaction fee.

If you happen to pay your bill late, the payment you’ll make is based on your credit card balance at the time of the late payment. Here is how the payment is calculated, according to the card’s fine print:

  • $19 if balance less than or equal to $100
  • $29 if $100.01 - $1,000
  • $39 if $1,000.01 - $5,000
  • $49 if greater than $5,000

The Business Advantage Cash Rewards has no annual fee.

Pro tip: You get nine months of 0% APR on purchases. After that, the normal APR of 12.99%-22.99% kicks in.

How the Bank of America Business Advantage Cash Rewards Compares to Other Business Rewards Cards

As we mentioned in the introduction to this review, comparing a credit card to the competition is a good way to understand how the card’s rewards and interest rate performs in the context of other cards.

The following chart includes sign-up bonus, yearly rewards, annual fee and lowest APR:

Credit card B of A Biz Cash Rewards Chase Ink Business Preferred U.S. Bank Business Edge Cash Rewards
Sign-up bonus $500 $800 $500
Yearly rewards At least $600 At least $350 At least $625
Annual fee None $95 None
Lowest APR 12.99% 17.74% 13.74%

Based on our research of these three cards, we believe the U.S. Bank Business Edge Cash Rewards is the most lucrative card, mainly because you get a 25% bonus on the points you earn. In other words, it offers as a complimentary perk what you’d have to spend $20,000 to get from the B of A card’s Gold Relationship Rewards Bonus.

While the Chase Ink Business Preferred has a hefty sign-up bonus, the card’s APR is at least 4% higher than the U.S. Bank card and nearly 6% higher than the B of A card. This type of high APR could cost you hundreds of dollars in interest payments.

For example, if you carry an average daily balance of $3,000 for an entire year, the Chase card will cost you $10 more per month than the U.S. Bank card and nearly $15 a month more than the B of A card.

In addition to the high APR, the card also has meager yearly rewards and a $95 annual fee.

In our opinion, the U.S. Bank card is the strongest choice, followed by the B of A card, whose rewards match up pretty well if you spend at least $25,000 a year.

The Final Word: Pros and Cons of the Bank of America Business Advantage Cash Rewards Card

We think this card’s greatest strength is that it offers good bonuses in the areas that many businesses spend a considerable amount of money on office supplies, gas, and restaurants.

We also like how the card’s best APR, 12.99%, is one of the lowest we’ve seen from a business credit card. The lack of an annual fee is a great perk, too.

The final strength is that you get reduced interest rates and rewards multipliers if you can spend at least $20,000 a year, something you don’t get with Chase’s business cards.

The Business Advantage Cash Rewards’ biggest drawback is that, if you’re a completely online business, the 3% bonuses won’t really be relevant for you, especially if you work from home and your work is done on a computer.

In general, we like this B of A business credit card because its fees are low compared to the competition and just $20,000 in yearly spending gives you access to rewards boosts and lower rates on business loans that could help you grow your company.

If you want to learn more about business credit cards, read through our guide to the best business rewards credit cards of 2018.

In the guide, we compare seven cards across seven categories, giving you insight into which cards are stronger and weaker in the areas that matter the most.

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