If you will look at different business credit cards, you may feel overwhelmed by a wide range of credit cards available in the UAE and each credit card comes with its own benefits, features, and rewards.
Among a broad range of business card categories, there is one category that is highly popular in the UAE and it is none other than cash back corporate credit cards. The majority of savvy business owners prefer opting for a cashback credit card as it enables the cardholders to earn cash back while they spend using their credit card. In short, it rewards a cardholder a percentage of their spending in the form of money back and then they can use the money as per their discretion. It can simply help the cardholders to improve their business flow if they got an automatic discount on every transaction they make using their cash back corporate credit card.
But, the main concern is that many business owners across the country use a cashback credit card but most of them are still unaware of the strategies that help them to get the most cash back from their business credit card. So, if you are one of them who are not making the most of your business cash back credit card, then read this article till the end to know how cash back program exactly works in addition to those useful tips that will help you to avail maximum cash back from your corporate credit card.
How Corporate Cashback Credit Card Work?
With cash back corporate credit cards, every time you make any transaction or purchase, you earn a specific percentage of money back. This percentage amount is fixed by the lender or bank that issues a cash back card. So, when you purchase anything by using your credit card, the amount gets added to your credit card account. Then, you can redeem your cash back amount in the following manner:
- A statement credit
- A credit in your card account that reduces the outstanding balance in your credit card account.
- A voucher or cash coupon or a cheque
- Gift cards
How Category Cash Back Bonuses Work?
Apart from a flat cash back reward rate, you could also find some other type of business credit cards in the UAE that are known as corporate credit cards with bonus categories. Such type of credit card enables you to earn a high amount of cash back for spending in different categories. Few cards use a set combo where the categories always remain the same such as 3% cash back on travel, 2% cash back on dining and office supplies, and 1% cash back on all other spends using that specific business cashback credit card.
Useful Tips for Availing Maximum Cash back from Business Credit Card
Following are some of the handy tips that will surely help you to avail the most cash back from your corporate credit cards:
- Opting for multiple cash back business credit cards can be a good idea as different cards provide cash back against different categories. So, utilizing the credit card that helps you earn more cashback when spending on any specific category is indeed a smart idea. Make sure you look at the annual membership fee, budget, and spending habits before considering any cashback credit card. Choose only if it suits your spending needs and budget also because there is no point in burning a hole in your pocket to earn cash back.
- Check what spending category enables you to earn the maximum cash back and then use your credit card for those purchases so that you can avail the most cash back from your corporate credit card. For instance, if buying flight tickets gets you the highest cash back, be sure to use that credit card each time you need to book air tickets.
- Keep an eye always on the spending category that entitles you to avail the maximum cash back specifically if you have a bonus category business cashback credit card because the cash back reward rate usually keeps on changing with time. If travel-related purchases earn the maximum cash back now, it could be fuel purchases next. So before you spend on your card, make sure you take a look on the top category for that specific period of time to earn maximum cash back on your spending.
- Make sure you always pay your credit card bill on time. Because there is no point of paying late payment fees as it would do away with any advantage that cash back brings.
- Pay your business cashback credit card bill in full. Otherwise, you will have to incur interest charges upon paying the minimum due amount and it will offset any advantage that you might receive by earning cash back.
- Opt for a credit card that has a zero or low annual membership fee. Because paying a high annual membership fee does not make any sense if you end up earning less cash back than the annual fee for that cashback credit card.
- Always look for the welcome bonuses since a few cash back business credit cards offer you a welcome bonus stating that if you spend a certain amount on your credit card within a specific period of time, then you could earn cash back as a signup bonus.
The Bottom Line
Cash back business credit cards are indeed a good option if they improve your business cash flow and provide you much-needed financial support. But it is important to be prudent and wise just like any other thing in order to make the most of it.