Cashback credit cards are a great way to earn rewards on business spending. With these cards, you can earn a percentage of your spending back in cash, which can be redeemed for statement credits, gift cards, or air miles.
But with many business credit cards on the market, each boasting its unique set of features, finding the right one requires research.
My guide aims to simplify that process by spotlighting some of the best options available in the UK based on a detailed comparison.
Best Cashback Business Credit Card: My Verdict
Ultimately, the best option depends on your business needs and spending habits. However, there are clear standouts:
Capital on Tap offers a solid 1% cashback across all spending with no annual fee for the Free Rewards card. The option to convert cashback to Avios points with the Business Rewards card (£99 annual fee) is a useful choice for businesses that require frequent travel.
Barclays Select Cashback has a great opening offer of 3% cashback for the first three months, reduced to 1% thereafter. It’s a sound option, especially considering there is no annual fee.
Santander Business Cashback credit card is a good choice for smaller businesses and sole traders, offering 1% cashback with no extra charges for additional cards. Like Capital on Tap, their lack of foreign transaction fees is a bonus for businesses transacting overseas.
RBS Business Plus stands out with its tiered cashback system, offering up to 2% cashback based on spending categories. Although it carries a £70 annual fee, heavy card users may find the cashback earned outweighs the cost. Plus, no foreign transaction fee is a major advantage for international spenders.
Can you get Cashback on a Business Card?
Yes, you can get cashback on a business card.
Many major banks and card issuers offer cashback rewards as an incentive for businesses to use their cards for eligible purchases.
Cashback rewards allow businesses to earn a percentage of their spending back in the form of cash, which can help offset some of their business expenses or be reinvested into the company.
How Do Business Cashback Credit Cards Work?
Cashback business cards are designed to provide businesses with a way to earn rewards on their purchases. The cashback arrangement typically involves the following key elements:
- Cashback Percentage: Businesses earn a certain percentage of cash back on each transaction when using a cashback business card for eligible purchases. The cashback percentage is often higher for specific spending categories, such as office supplies, travel, or telecommunications.
- Eligible Spending: Businesses must use their cashback business card for eligible purchases only to earn cashback rewards.
- Accumulation of Rewards: The rewards are calculated based on the cashback percentage associated with each spending category. Most cards come with an app where you can track this in detail.
- Redemption Options: Once a certain amount of cashback has been accumulated, businesses can redeem the rewards through various options. This may be applying the cashback as a credit to the cardholder’s account, receiving a deposit into the linked business bank account, or converting the cashback into vouchers or gift cards.
How to Choose the Right Cashback Business Card:
- Cashback Percentage: Compare the cashback rates offered by different cards. Look for higher percentages that suit your business expenses.
- Eligible Spending and Cap: Check what purchases qualify for cashback and if there’s a limit on how much you can earn.
- Annual and Transaction Costs: Consider any annual fees and transaction charges associated with the card.
- Foreign Transaction Costs: Be aware of any international spending and withdrawal fees.
- Interest Rates and Penalties: Review the card’s interest rates and late payment penalties.
- Additional Cards: Check if you can get extra cards for employees and if there are any additional charges.
By considering these factors, you can find a cashback business card that fits your business needs and helps you maximise your rewards.
The Best Cashback Business Card in the UK
When it comes to cashback business cards in the UK, there are several options available, each offering unique features and benefits. Below, we have reviewed some of the best cashback business cards in the UK to help you make an informed decision:
| Credit Card | Cashback % | Costs | Foreign Transaction Fee | Interest Rate | Additional Cards | Apply Now |
|---|---|---|---|---|---|---|
| Capital on Tap Free Rewards | 1% on all spending | No annual fee | No fee | 36.19% APR variable | Free | Apply Now |
| Capital on Tap Business Rewards | 1% on all spending | £99 annual fee | No fee | 59.15% APR variable | Free | Apply Now |
| Capital on Tap Pro Card | 1% on all spending | £299 annual fee | No fee | From 15.22% APR variable | Free | Apply Now |
| Barclays Business Select Cashback | 1% on all spending | No annual fee | 2.99% | 27.1% APR variable | Free | Apply Now |
| Santander Business Cashback | 1% on all spending | No annual fee | No fee | N/A | Free | Apply Now |
| RBS Business Plus | 0.5% – 3% tiered cashback | £70 annual fee | No fee | 29% APR variable | Free | Apply Now |
1. Capital on Tap: Best Overall Cashback Credit Card
Capital on Tap offers three options for their cashback credit card: Free Rewards and Business Rewards. With both options, you can earn 1% cashback on all your card spending, which includes bills, operating costs, and general expenses. That means every time you use your card for business purchases, you’ll get some money back.
For the Free Rewards option, there is no annual fee, so you can enjoy the cashback benefits without any extra cost. Both the Purchase Rate and the Representative APR are a variable rate of 36.19% APR.
You’ll also have access to exclusive offers and savings at places like Zoom, Hertz, and Superscript. Plus, you can redeem your points in different ways, such as using them against your balance, getting cash, or getting discounted gift cards.
If you choose the Business Rewards option, there is an annual fee of £99, but you get even more rewards. The Purchase Rate of 36.19% APR (variable) is the same as the Free option, but the Representative APR is 59.15% APR (variable). However, you may be able to get rates as low as 15.22% APR (variable) if you have a good credit history.
You still get the 1% cashback on all card spending, exclusive offers, and the same redemption options as the Free Rewards. On top of that, you also get the option to redeem your points for Avios, and you’ll receive a bonus of 10,000 points when you spend £5,000 in your first 3 months with the card.
The Pro card is Capital on Tap’s premium card and has an annual fee of £299 per year. In addition to all the benefits of the Business Rewards card, the Pro card gives the main cardholder unlimited access to more than 1,6000 airport lounges. You’ll also receive 2 free guest lounge passes per year and be granted Radisson Rewards VIP status making it ideal for frequent travellers.
Business owners should be aware of the points expiration policy, where points will expire if left unredeemed for 24 consecutive months or if the rewards membership lapses. Timely redemptions are advised to ensure that the value of earned rewards is not lost.
| Feature | Value |
|---|---|
| Card Name | Capital on Tap Business Credit Card |
| Cashback Percentage | 1% on all eligible spending |
| General Cost | No annual fee for the Free Rewards card; £99 annual fee for Business Rewards card; £299 annual fee for the Pro card |
| Currency Exchange Rates | Visa exchange rate with no Capital on Tap fee |
| Interest Rates | 36.19% APR (variable) for the Free card or 59.15% APR (variable) for the Business Rewards Card |
| Additional Cards | Available for team members at no extra cost |
2. Barclays Cashback Business Card
Another great option is the Barclaycard Business Select Cashback Card, which offers a cashback earn-rate of 1% on all day-to-day spending.
The rewards are paid monthly, and there is no cap on the amount of cashback you can earn.
While the cashback is the main attraction, you’ll also get brand-specific offers ranging from discounts on airport parking to visibility of your business’s credit report. They also throw in free accounting software with FreshBooks (worth £264 per year).
The card provides payment flexibility, with a billing cycle that usually allows around 25 days to settle the bill. This means that purchases can effectively benefit from up to 56 days of interest-free credit.
The card is in line with typical industry standards regarding rates and fees. If the balance is not cleared each month, a variable rate of 27.1% applies to purchases, while cash withdrawals incur a higher rate of 33.4%, and purchases made overseas have a 2.99% fee.
I appreciate the added security provided by the purchase protection and cardholder misuse insurance, which come as standard. However, I would caution you to note the non-sterling transaction fees for card usage abroad.
| Feature | Value |
|---|---|
| Card Name | Barclaycard Select Cashback Business Credit Card |
| Cashback Percentage | 1% on all eligible spending |
| General Cost | No annual fee |
| Currency Exchange Rates | Visa exchange rate, plus non-sterling transaction fee of 2.99% |
| Interest Rates | From 27.1% APR (variable) |
| Additional Cards | Available for team members at no extra cost |
3. Santander Cashback Business Card
Santander, Spain’s largest bank, offers another 1% card: the Business Cashback Credit Card. To be eligible, you must already have a 1|2|3 Business Current Account or Business Current Account.
Cardholders can earn 1% cashback on all eligible business spending with no cap, making it an attractive incentive to offset regular business costs. The card also offers the benefit of no foreign transaction fees on purchases made abroad when paying in the local currency.
Additional cards are free, allowing business owners to extend the card’s benefits to team members and control their spending limits.
There are no interest charges if the balance is paid off in full and on time each month.
| Feature | Value |
|---|---|
| Card Name | Barclaycard Select Cashback Business Credit Card |
| Cashback Percentage | 1% on all eligible spending |
| General Cost | No annual fee |
| Currency Exchange Rates | Visa exchange rate with no Barclays fee |
| Interest Rates | From 27.1% APR (variable) |
| Additional Cards | Available for team members at no extra cost |
4. RBS Business Plus Card
The RBS Business Plus Credit Card offers a rewarding cashback program and additional benefits for business owners. With a £70 annual fee per cardholder, the card allows users to earn cashback on various spending categories.
Cardholders receive 0.5% cashback on all purchases, 1% on eligible travel and accommodation, 2% on eligible trade/business supplies, and 3% at eligible fuel and electric vehicle charging stations. The cashback is limited to £600 per year.
In addition to the cashback rewards, the RBS Business Plus Credit Card offers other advantages, including no foreign transaction fees on purchases made abroad and up to 56 days of interest-free credit period on purchases.
To manage spending better, RBS offer ClearSpend, a free mobile application, to analyse business expenses.
| Feature | Value |
|---|---|
| Card Name | RBS Business Plus Credit Card |
| Cashback Percentage | 3% on eligible fuel and electric vehicle charging stations |
| 2% on eligible trade/business supplies | |
| 1% on eligible travel and accommodation | |
| 0.5% on all other spending | |
| General Cost | £70 annual fee per cardholder |
| Currency Exchange Rates | No foreign transaction fees on purchases abroad |
| Interest Rates | Representative 29% APR (variable) based on £1,200 credit limit |
| Additional Cards | Available for team members at no extra cost |
FAQ’s
What types of expenses are eligible for cashback rewards?
The eligible expenses for cashback rewards depend on the specific credit card’s terms and conditions. Common eligible categories include business travel, dining, fuel, office supplies, and general business purchases. Some cards may have specialized categories that offer higher cashback rates.
Can I redeem the cashback for anything I want?
The redemption options for cashback rewards vary by credit card. Some cards allow you to redeem cashback as statement credits, while others may offer direct deposits to a bank account, gift cards, or merchandise. It’s essential to review the card’s redemption options and choose the one that best suits your preferences and needs.
What are the risks of using a cashback business credit card?
The main risk of using a cashback business credit card is the potential for overspending and accumulating debt. If you don’t pay off your credit card balance in full each month, the interest charges can negate the cashback benefits. Additionally, late payments can harm your credit score and affect your business’s financial health.
How can I maximise the benefits of a cashback business credit card?
To maximize the benefits of a cashback business credit card, use the card for eligible business expenses and pay off the balance in full each month to avoid interest charges. Focus on spending in categories with higher cashback rates and stay within your budget to ensure that the cashback rewards are a net gain for your business.
