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Maximizing Your Business Expenses: A Guide to Bank of America Customized Cash Rewards

Bank of America Business Advantage Customized Cash Rewards: An Overview

Are you a business owner looking for a credit card that offers cash back rewards on your business expenses? Bank of America’s Business Advantage Customized Cash Rewards might just be the card for you.

In this article, we will explore the benefits and limitations of this card, as well as who should consider getting it.

Benefits and Limitations

The Bank of America Business Advantage Customized Cash Rewards credit card offers customers cash back on their business expenses. The card allows you to choose the categories in which you want to earn your cash back rewards.

You get to pick from six categories: gas stations, office supply stores, travel, TV/telecom and wireless, computer services, or business consulting services. For businesses with high-spending in these categories, the rewards can add up quickly.

There is a spending cap on the 3% cash back rewards, with a limit of $50,000 per year. Any spending above that amount will earn cash back at the lower rate of 1%.

The 2% cash back category has no spending cap, so businesses can earn unlimited rewards on spend in that category.

The card has no annual fee, which is a definite bonus for businesses looking to keep their costs down.

Additionally, new cardholders can earn a $300 statement credit after making $3,000 in net purchases within the first 90 days of account opening. In terms of trade-offs, this card has a 0% introductory APR for the first 9 billing cycles, making it ideal for businesses that need to make a large purchase and pay it off over time.

However, after the introductory period, the APR jumps to a variable rate of 13.74-23.74%, which is relatively high compared to other business credit cards. Who should get the card?

If you’re a business owner with high-spending in the categories mentioned above, the Bank of America Business Advantage Customized Cash Rewards credit card can help you earn significant cash back rewards on your business spending. Additionally, if your business is looking to keep costs down, this card is a good option as it has no annual fee.

The bonus of a $300 statement credit can also help businesses to offset some of the costs of their business expenses.

Credit Card Basics

The Bank of America Business Advantage Customized Cash Rewards credit card is a business credit card that offers cash back rewards for spending. The card issuer is Bank of America, and the network used is Mastercard.

The card comes with a $0 annual fee, which is a significant benefit for businesses looking to keep their costs down. The card also comes with a sign-up bonus of $300 in the form of a statement credit.

To be eligible, new cardholders must make $3,000 in net purchases within the first 90 days of account opening. The card offers a 3% cash back reward on spending in the chosen category, with a spending cap of $50,000 per year.

Spending above that amount earns rewards at the lower 1% rate. The card also offers a 2% cash back reward on spending at restaurants and gas stations, with no spending cap.

In terms of APR, the card has a 0% introductory APR for the first 9 billing cycles on purchases and balance transfers made within the first 60 days of account opening. After the introductory period, the APR jumps to a variable rate of 13.74-23.74%, which can be relatively high compared to other business credit cards.

Conclusion

In summary, the Bank of America Business Advantage Customized Cash Rewards credit card offers businesses a great opportunity to earn cash back rewards on their spending. The card has some significant benefits such as no annual fee, a generous sign-up bonus, and the opportunity to choose the categories in which you earn your rewards.

However, businesses should be aware of the spending cap on 3% rewards and the relatively high APR once the introductory period ends. If your business regularly spends a significant amount in one of the chosen categories, and you pay off your balances in full every month, this card could be a great option to add value to your business expenses.

Benefits of Bank of America Business Advantage Customized Cash Rewards Credit Card

If you are a business owner, you know that managing your expenses effectively can be challenging. Choosing the right credit card that offers rewards and benefits can offset some of the expenses, enabling you to maximize your savings.

Bank of America Business Advantage Customized Cash Rewards credit card can be an excellent option to consider.

Generous Welcome Bonus and No Annual Fee

The Bank of America Business Advantage Customized Cash Rewards credit card offers businesses a generous welcome bonus of $300 online statement credit when they spend $3,000 net purchases within the first 90 days of account opening. This bonus can be highly beneficial for businesses as it can help offset their initial expenses.

Additionally, the card has no annual fee, which makes it highly attractive, especially for small businesses looking to keep expenses low. The absence of annual fees can also enable business owners to maximize savings and earn more rewards.

Earning Potential and Preferred Rewards Membership

The Bank of America Business Advantage Customized Cash Rewards credit card offers an impressive cashback of 3% in the category of your choice. You can select one from the six available categories, including gas stations, office supply stores, travel, TV/telecom and wireless, computer services, or business consulting services.

The 3% cashback is available for the first $50,000 in the category per year. Any spending on the category above $50,000 will earn 1% cashback for the remaining period.

The card also offers a 2% cashback on spending at restaurants and gas stations, which does not have a spending limit. These rewards can boost your earning potential and help you offset some of the business expenses.

Moreover, you can join the Preferred Rewards for Business program, which can increase your rewards rate by 25% to 75%. To qualify, you need to have an eligible Bank of America deposit account.

The higher your balance, the more rewards you earn.

Intro APR and Purchase Protections

The Bank of America Business Advantage Customized Cash Rewards credit card offers an introductory 0% APR for the first nine billing cycles. If you need to finance large purchases, this can be an excellent opportunity to save on interest rates.

After the introductory period, the variable APR ranges from 13.74% to 23.74%, depending on your creditworthiness. The card also provides purchase protection, which covers you against theft or damage on the purchased items for the first 90 days from the date of purchase.

Besides, the card provides extended warranty coverage for eligible purchases, extending the manufacturer’s warranty for up to one year.

Travel Coverage

The Bank of America Business Advantage Customized Cash Rewards credit card provides several travel benefits to business owners, such as travel accident insurance, auto rental insurance, and lost luggage assistance. Travel accident insurance covers you and your employees for accidental death or dismemberment when traveling by common carrier.

The auto rental insurance protects you when renting a car for covered damage and theft. Lastly, lost luggage assistance enables you to get reimbursement for essential personal items you purchase if your luggage is lost.

Drawbacks of Bank of America Business Advantage Customized Cash Rewards Credit Card

Spending Limits and Foreign Transaction Fees

One of the significant drawbacks of the Bank of America Business Advantage Customized Cash Rewards credit card is the $50,000 spending cap on the 3% cashback category. For businesses with significant expenses in this category, they might not maximize their rewards fully.

Any spending above the $50,000 limit will only earn 1% cashback. Additionally, the card has foreign transaction fees of 3% of total transaction amounts, making it costly for businesses that frequently travel internationally.

If your business has significant global expenses, it might not be the best card to use.

Credit Requirements

To apply for the Bank of America Business Advantage Customized Cash Rewards credit card, you need to have an excellent credit score. If you have a poor credit score, your application may be denied.

Additionally, the card requires a minimum $3,000 net purchase to qualify for the $300 statement credit. If you have trouble meeting this threshold, it might not be the best option for your business.

Conclusion

The Bank of America Business Advantage Customized Cash Rewards credit card can be highly beneficial for businesses looking to offset their expenses with cashback rewards. The card offers generous welcome bonuses, rewards in the category of your choice, Preferred Rewards membership, an introductory 0% APR, and purchase protections.

However, businesses need to consider the drawbacks of the card, such as the spending limits, foreign transaction fees, and credit requirements, before making their decision.

Earning and Redeeming Bank of America Rewards

The Bank of America Business Advantage Customized Cash Rewards credit card allows businesses to earn cash back rewards on their spending, which can offset some expenses. In this section, we will discuss how to earn and redeem Bank of America rewards.

Categories and Rewards Rate

As previously mentioned, the Bank of America Business Advantage Customized Cash Rewards credit card allows businesses to earn cash back rewards in the category of their choice. The available categories include gas stations, travel, computer services, office supply stores, TV/telecom and wireless, and business consulting services.

Businesses can earn 3% cashback on the category of their choice, while other purchases earn 1% cashback. Additionally, businesses can earn 2% cashback on spending at restaurants and gas stations, with no spending limit.

Preferred Rewards Membership and Earning Potential

The Bank of America Preferred Rewards for Business program offers businesses the chance to become a preferred rewards member. Members can earn a bonus of between 25% and 75% on their rewards, depending on their deposit balance.

Boosting your earning potential means that businesses can earn higher cash back rates on their purchases, thus offsetting a higher proportion of their expenses with rewards. For example, a member in the platinum tier, with a balance of $100,000 or more, can earn a 75% rewards bonus and earn up to a maximum of 5.25% cashback in their chosen category.

Redemption Options

The Bank of America Business Advantage Customized Cash Rewards credit card offers businesses several options for redeeming their rewards. Rewards can be redeemed for deposits into Bank of America checking or savings accounts, statement credits applied to the account balance, or mailed checks.

Deposits – Rewards can be deposited directly into the Bank of America checking or savings account of the cardholder’s choosing. This option is particularly useful for businesses that regularly use Bank of America as their primary financial institution.

Statement Credits – Rewards can be redeemed as statement credits, which can help to offset the account balance. Statement credits are useful for businesses that require more immediate relief from their expenses, as they reduce the account balance, which can decrease the amount due for the following month.

Mailed Checks – Finally, businesses can also choose to receive a mailed check, which can be useful for businesses that prefer the flexibility of cash.

FAQ

Additional Cards to Consider

If businesses are looking for alternatives to the Bank of America Business Advantage Customized Cash Rewards credit card, there are other options to consider. Capital One Spark Cash Plus – This card offers unlimited 2% cashback on all purchases, with no limits or categories to choose from.

The card comes with a $0 annual fee for the first year and $150 after that. This card might be useful for businesses that want more straightforward cashback rewards without needing to choose specific categories.

Ink Business Cash Credit Card – This card offers 5% cashback on the first $25,000 in office supply stores and cellular phone, landline, internet, and cable TV services purchases per year, plus 2% cashback on the first $25,000 in gas and restaurant purchases per year. The card also comes with a $0 annual fee and an introductory 0% APR for the first 12 months.

This card might be useful for businesses with high spending in the specified categories. In conclusion, when choosing a credit card that allows you to earn rewards on your business spending, it is essential to consider the benefits and limitations of each card.

The Bank of America Business Advantage Customized Cash Rewards credit card offers businesses the chance to earn rewards in the category of their choice, with no annual fee and a generous sign-up bonus. However, businesses should also consider the spending limits, foreign transaction fees, and credit requirements.

Lastly, the Bank of America Preferred Rewards for Business program can help boost your earning potential and maximize rewards, while alternative cards such as Capital One Spark Cash Plus and Ink Business Cash Credit Card offer different reward structures that may better suit some businesses.

Bottom Line

The Bank of America Business Advantage Customized Cash Rewards credit card can be a valuable tool for businesses looking for a credit card that offers cash back rewards. However, like any credit card, the card has its limitations, and businesses must carefully consider whether it is the right fit for their needs.

Benefits and Limitations of the Card

One of the primary benefits of the Bank of America Business Advantage Customized Cash Rewards credit card is its cashback rewards program. The card offers 3% cashback on one category of the cardholder’s choosing, plus 2% cash back on spending at restaurants and gas stations, with no spending limit.

Additionally, the card comes with a $0 annual fee, and new cardholders can earn a $300 statement credit after spending $3,000 net purchases within the first 90 days of account opening. The card also provides an introductory 0% APR for the first nine billing cycles, which can be useful if you need to finance large purchases.

However, the card does have limitations. For example, the 3% cashback category has a spending cap of $50,000 per year.

Once the spending limit is reached, any additional spending will earn cashback rewards at a rate of 1%, significantly lowering the potential rewards.

Additionally, the card has foreign transaction fees of 3% of the transaction amounts which can be expensive for businesses that regularly travel globally.

Lastly, to apply for the card, you must have an excellent credit score. If your credit score is poor, your application may be denied.

Credit Card Options

When considering whether the Bank of America Business Advantage Customized Cash Rewards credit card is the right fit for your business, it is essential to compare it with other credit card options. Some alternatives include:

– The Capital One Spark Cash Plus, which offers an unlimited 2% cashback on all purchases, but comes with an annual fee of $0 for the first year and $150 after that.

– The Ink Business Cash Credit Card, which offers 5% cashback on the first $25,000 in office supply stores and cellular phone, landline, internet, and cable TV services purchases per year, plus 2% cashback on the first $25,000 in gas and restaurant purchases per year. The card also comes with a $0 annual fee.

Comparing the Bank of America Business Advantage Customized Cash Rewards credit card to these other options can help businesses determine which card offers the most significant benefits and rewards based on their spending patterns. In conclusion, the Bank of America Business Advantage Customized Cash Rewards credit card offers businesses the opportunity to earn cashback rewards on their spending, making it an attractive option for businesses with high expenses in certain categories.

However, the card has its limitations, including a spending cap on the 3% cashback rewards and foreign transaction fees, which businesses must consider before applying for the card. Lastly, comparing the card with other credit card options can help businesses find the one that will best suit their needs and maximize their rewards.

In conclusion, the Bank of America Business Advantage Customized Cash Rewards credit card is an excellent option for businesses looking to earn cashback rewards while keeping expenses low. The card offers a generous welcome bonus, 3% cashback on the chosen category, no annual fee and an introductory 0% APR.

However, the card has limitations such as a spending cap on the

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