Treasury Services

3 Ways to Ensure You Get the Most From Your Business Rewards Card

Are you missing a major opportunity with your business rewards card? Ask yourself these three simple questions to determine which commercial card could make running your business even more rewarding.


 

Whether you’re a business owner or a finance leader, you likely have a common goal: Continuously improve the financial health of your company. Whether it’s optimizing working capital, reducing costs, tracking employee business spend or more, you meticulously inspect areas for improvement.

If you have already introduced a commercial card program for your business, you’re ahead of the pack. You might even have an all-star program administrator who manages the daily operations. Commercial card programs offer businesses robust benefits. In addition to powerful controls, simplified reconciliation and improved working capital, businesses can also earn value back from their purchases just like a consumer credit card. Think redeemable rewards points across a range of categories, or an annual refund on all card purchases in the form of a cash rebate.

There is a difference between having a card program and having a great program. But what’s the best business rewards card for you? Here are three questions to help you discover whether rewards or rebate will provide you with the strongest value.
 

1. How Much Does Your Business Spend Annually?

Start by looking at your business’ annual spend. Typically, organizations with higher spend see more value from an annual rebate program, while rewards might be a stronger incentive for businesses that want to use their points throughout the year.

Rewards

With no minimum spend requirement, your business can earn one reward point for every dollar spent—and there’s no limit on the number of points your business can earn. You know exactly how many points are available to reinvest in your organization at any time.

Rebate

As your business spends more, you will move up tiers of cash back rebate eligibility. In doing so, your business can gain a higher rebate rate. Businesses spending $3 million or more annually could potentially see a stronger impact to their bottom line from rebates over rewards.*

 

 

2. How Often Will You Redeem Your Earnings: Annually or Anytime?

Consider how often your business wants to use its earnings. For instance, some organizations prefer receiving a lump-sum rebate annually, while others might value the ability to get rewards anytime throughout the year. 

Rewards

Your business has the flexibility to use its rewards points whenever you want. Because your points never expire, there’s no pressure to redeem business card rewards by a certain date. Instead, your business can use its points anytime through an easy-to-use website.

Rebate

Your business will receive an annual cash rebate payment that can be used to invest back into your business—whether it’s using your rebate for everyday business expenses or reinvesting money back into your company.

3. What Works Best for Your Business?

Define your business objectives and how rewards or rebate will match. Are you trying to boost your employee recognition program? Want to replenish office supplies next month? Maybe you need to offset the balance sheet at the end of a slow quarter. Or do you have large, predictable initiatives like strategic projects or annual employee bonuses?

Rewards

With 1% cash back on every purchase**, you can reinvest in your business on a monthly, quarterly or annual basis. Earn gift cards from top brands to fuel your employee recognition program. Or outfit your organization with the latest technology and office equipment.

Rebate

Optimize your expenses, improve your bottom line and apply your rebate to your annual spend. Organizations have the freedom to spend their rebate however they want, which may mean paying employee bonuses, funding a strategic IT project or refurnishing the office space. The options are endless.

A Business Rewards Card Opportunity

Choosing the perks that align to your business spend and needs is essential when building a commercial card program. When businesses use the J.P. Morgan One Card, for instance, they have the potential to double their business rewards value across:***

  • Cash back
  • Gift cards
  • Merchandise
  • Travel (air, hotel, car rental)

 

Commercial Card Program: One Card

Typical Use: Business-to-business purchases and travel and entertainment expenses.

Ideal For: Organizations that want a single card program for any type of spend, from travel to everyday business expenses. Learn more.

 

You earn value on every transaction. You also have the flexibility to reinvest that value back into your business via cash back. Or you can delight your employees by rewarding them with gift cards from the brands they love, by leveling up your office space with new furniture or a ping pong table, or by ensuring your employees have the right tech to work from home more efficiently.
 

Building a Robust Commercial Card Program

Other areas to consider are how your business rewards card provides your company with key benefits—such as transparency and control, intuitive reporting, flexible payment terms to maximize cash flow, and fraud protection. Look at how your commercial card provider can also help you achieve more with resources like customer service, card acceptance across a broad base of suppliers, and the scale to grow alongside with you.

As you evaluate whether a rewards or rebate program fits best with your business—as well as the broader benefits of a commercial card program—you don’t need to figure it out all at once or on your own. Connect with us, and we’ll help you find the right solution.

 

*For illustrative purposes only.

**Earn 1% cash back, which equates to one point per dollar spent on every purchase. One hundred points is redeemable for the value of one dollar.

*** J.P. Morgan One Card with Rewards calculations and competitor calculations.

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