Business travel rewards vs. cash back rewards credit cards

Two popular business credit card options are travel rewards cards and cash back cards. Both can be beneficial for your business, and earning rewards for your expenses is a perk you shouldn’t ignore. But which card provides the rewards that align best with your business’s needs?

From earning miles and renting cars to cash back opportunities and annual fees, let’s take a closer look at how business travel rewards credit cards and cash back credit cards compare.

Key takeaways

• Business travel rewards credit cards allow you to earn points or bonus miles toward business travel expenses. They often come with additional perks, like airport lounge access.
• Cash back rewards offer a simple, flexible way for businesses to redeem their rewards like a statement credit, check or gift card.
• Understanding your business’s needs can help you decide which type of rewards card makes the most sense for your organization. 

Whether you use your business credit card for monthly office expenses or to treat clients to dinner, having a card designated solely for business expenditures can help streamline your budget. And when you have a business credit card that offers rewards, you’ll enjoy even more value for the money you’re already spending.

With so many perks to consider, it might be tough to decide which business rewards card makes the most sense for you. Should you get one that offers points or miles that can be redeemed for travel? Or should you go for one that offers cash back on your purchases? Here’s a little more information on both types of business rewards cards to help you decide.

With a business travel rewards card, you’ll accrue miles or points with every purchase. These rewards can then be applied toward travel expenses like airfare, hotels or rental cars. So when you use your card for business expenses, you can save on business travel while tapping into additional benefits like:

• Travel perks: Cardholders earn rewards while enjoying extras like access to airport lounges, credits toward Global Entry or TSA PreCheck®, free hotel stays, complimentary checked baggage and more.
• Travel insurance: Travel rewards credit cards often come with travel insurance, so you can rest easy knowing that you’re covered if you have to cancel your trip, it’s interrupted or delayed, your bags are lost, etc.
• Manage travel expenses: Using a credit card for business travel expenses helps you streamline your budget and understand where your money goes on each trip.

With the Venture X Business card from Capital One, for instance, you’ll earn unlimited 2X miles on every purchase, whether you use your card to buy your morning coffee or to get an employee a new laptop. Plus, you’ll enjoy a variety of other benefits, such as:

• Unlimited 10X miles on hotels and rental cars booked through Capital One Travel
• Unlimited 5X miles on flights booked through Capital One Travel
• 150,000 bonus miles if you spend $30,000 in the first three months of using your Venture X Business card
• Anniversary bonuses and annual travel credits for booking through Capital One Travel

Cash back business credit cards usually allow you to earn a percentage of cash for each purchase you make with the card. Some cards have a fixed cash back rate while others offer higher percentages for certain spending categories. You can typically redeem your cash back as a statement credit or request a check. Some card issuers may also allow you to redeem rewards for gift cards. Other perks can include:

• Flexible rewards redemption: Cash back credit cards offer straightforward rewards with different ways to redeem based on what makes the most sense for your business, such as a statement credit or a check.
• Opportunity to maximize rewards: You can maximize your spending by choosing a card that offers rewards in categories where you spend the most. For instance, if you’re always dining out with clients, go for a card that offers cash back for restaurant purchases.
• Lower annual fee: Business cash back rewards credit cards generally have low—or even no—annual fees. 

So how do you choose which type of business rewards credit card is right for you? Before you apply, you should think about your current spending habits and what type of rewards would be most advantageous for your business.

Consider your business’s budget and where you use your credit card most often. Ask yourself the following types of questions:

• Do you or your employees travel frequently for business purposes?
• Are you buying office supplies or paying for shipping supplies or office utilities?
• Do you take clients or employees out to dinner often?

Once you have a clear picture of what your regular expenses are, it will be easier to determine which type of business credit card makes the most sense for your organization. But let’s take a closer look at the pros and cons of each so you can make the most informed decision.

Pros: If you or your employees travel often, a business travel rewards card could be extremely beneficial. You’ll earn valuable rewards on travel purchases that may even cover the entire cost of a future flight. Plus, with additional perks like access to airport lounges, free checked bags and hotel upgrades, you can rest assured knowing that your trip will be comfortable while you’re saving money.

Cons: With a business travel credit card, you’ll be slightly more restricted when it comes to redeeming rewards. Generally, you’ll only be able to use rewards for travel purchases. And you might have fewer airline or hotel options, as some cards only offer the highest rewards for purchases made with a specific airline or hotel brand. 

Pros: Cash back cards for businesses can offer more flexibility to earn rewards on many different types of purchases—you won’t be limited to getting rewards only for travel purchases. And the options for redeeming rewards can be more flexible too. You can choose the reward that makes the most sense for your business, whether that’s a statement credit, a check or a gift card.

Cons: The rewards that cash back cards offer might feel slightly less beneficial than travel rewards. Unlike a travel card where your rewards can go a little further with additional perks, with a cash back card you get a straightforward reward that won’t exceed its value.

Still not sure whether you should get a travel rewards or cash back credit card for your business? Here are answers to a few frequently asked questions that may aid in your decision.

Depending on your organization’s needs, a business travel rewards card or a cash back credit card can offer a variety of benefits that can help your business thrive. Bonus miles that can be used for travel expenses are advantageous for frequent travelers, while cash back rewards are flexible and easy to redeem.

Understanding where you could get the most value from the rewards will help you know which type of card can be the most beneficial for you and your team. Ready to start earning valuable rewards? Apply for Venture X Business today, or learn more about Capital One’s other business credit cards to see which one best meets the needs of your organization.