Interview with Hugh Acland, Commercial Director at Capital on Tap: How can small businesses optimize cashback incentives?
Small business owners could earn thousands of points, travel perks and even cash just by optimizing their use of credit card cashback incentives. Many credit cards now offer lucrative perks and incentives on everyday business purchases which businesses can then use to offset their spending. These offerings range from airmiles, to retail vouchers, to cashback rewards and discounted hotel stays.
Cashback business credits pay back a percentage of the money spent on business-related expenses, from office supplies and vendor services to fuel and business-related travel accommodation. For the 33.2 million small business owners in the US, this is a welcome benefit that means they can derive maximum value from routine business purchases, and maximize the reward of using their credit cards.
While nearly 70% of business owners already have a business credit card, choosing one that earns rewards can play a significant part in boosting your bottom line. We recently spoke with Hugh Acland, Commercial Director at Capital on Tap, about cashback incentives and what they offer small business owners.
How do cashback incentives for small business credit cards work, and what benefits do they offer employees and business owners?
“When small business owners use a credit card with a cashback program, they can earn a certain percentage of their purchases back as cash rewards. Typically, the more they spend, the more cashback they accumulate. But, the rewards can vary depending on the type of spending.
Some cashback programs also apply certain limits. For example, there might be a cap on the amount of rewards customers can earn. Despite these considerations, cashback incentives still offer some fantastic advantages. Getting cashback on everyday business expenses can add up over time and contribute to significant savings. It’s like giving your profits a little boost without much effort, alongside more flexibility in managing business expenses.”
“Getting cashback on everyday business expenses can add up over time … It’s like giving your profits a little boost without much effort.”
What are some examples of specific cashback rewards that small businesses can earn through the Capital on Tap Business Credit Card program?
“Customers have several ways to redeem points; points can be redeemed directly against their credit card balance to help offset their outstanding balance and reduce their overall debt. They can also choose to convert points into discounted e-gift cards which they can use at leading retailers, such as Amazon and Uber. This offers small business owners the flexibility to use funds in whichever way works best for them, whether that’s reinvesting it or using it to cover unexpected expenses.”
What strategies would you recommend to small business owners to maximize their cashback earnings?
“To maximize cashback benefits, small business owners should use their credit cards for as many business expenses as possible. Then, they can accumulate cashback rewards from every transaction, no matter how small, which can significantly add up over time. Capital on Tap Business Credit Card customers have the added advantage of being able to redeem their rewards points for discounted gift cards. This enables them to stretch their cashback rewards further, as they can obtain gift cards at a reduced cost. It also offers them even more value from their hard-earned rewards, which they can use to purchase essential supplies and equipment, or even reward their hardworking employees.”
“Businesses can accumulate cashback rewards from every transaction, no matter how small, which can significantly add up over time.”
Are there any limits on how small businesses can use their cashback rewards, or is it generally flexible regarding redemption?
“One of the key advantages to having a Capital on Tap Business Credit Card is that there is no cap on the amount of cashback customers can earn. The more they spend on card purchases, the more they earn in cashback rewards!
“Capital on Tap Business Credit Card customers are also provided with multiple options for redeeming points to their diverse business needs and preferences. They can choose the redemption method that best suits them, whether that’s redeeming against their balance, or converting their points to gift cards.”
What benefits or perks should small business owners consider beyond cashback rewards when choosing a credit card?
“When choosing a credit card provider, small business owners should consider card fees, supplementary cards, spending controls, and options for integration with accounting software. They also need to consider whether there are any annual, transaction and ATM withdrawal fees. Just one of the reasons that the Capital on Tap Business Credit Card stands out is that it doesn’t charge annual, ATM, or foreign exchange fees. There are also no fees for supplementary cards.
“Capital on Tap also offers a user-friendly mobile and website app that allows business owners to manage their accounts, track expenses, and monitor spending in real-time. Customers can set personalized spending limits, giving them a clear overview of both employee and personal spending.
How does earning and redeeming cashback rewards work with a Capital on Tap Business Credit Card?
“For every reward point earned using their Capital on Tap Business Credit Card business owners can redeem it for 1.5% cashback. This means that if a business spends $10,000 per month, it can be rewarded up to $1,800 annually.
“When redeeming rewards, account holders can transfer their reward points to their balance to reduce what they owe on their credit card. They can also convert their points to discounted e-gift cards.
“To redeem their rewards, account holders must log into their online account and navigate to the ‘Rewards’ page. From there, they can choose how to redeem their reward points.”
“For every reward point earned using their Capital on Tap Business Credit Card, businesses can redeem 1.5% cashback.”
There’s great potential for small business owners to earn significant perks, points and cash by optimizing credit card cashback incentives. Small businesses can harness lucrative benefits to offset their everyday spending and enjoy a range of benefits such as retail vouchers, money towards purchases, and discounted hotel stays.
*Capital on Tap Business Credit Cards are issued by WebBank.