Compare Business Credit Cards

How do you find the best business credit card?

When it comes to business credit cards in Australia, no one card is the ‘best’—the answer will come down to you and your business’ needs as well as how you plan to use the card.

A good place to start when comparing business credit cards can be to ask yourself some key questions:

How do you plan to use the card?  If you’re likely to hold over a balance month to month, you may consider a business credit card with a low interest rate and fees. On the other hand, if you’re likely to pay off the balance in full each month, then you may consider a card with a high number of interest-free days and a low annual fee, or a card that has a rewards program attached to it.

How much are the interest rates and fees? It’s important to consider the card’s interest rates, such as the purchase, cash advance, balance transfer and foreign currency conversion rates, as well as the fees that may apply, like annual, cash advance, international transaction and foreign currency conversion, late repayment and non-bank ATM fees.

What spending limit do you require? Business credit cards will generally come with a credit limit, which is the maximum amount you can spend before you’re required to make a payment. Figuring out the type and value of the purchases you’ll be making using the card will help determine how much of a limit you may require.

How many interest-free days does the card offer? Interest-free days refer to the days after a purchase is made before interest will start to accrue. If your business runs on a particular pay cycle, then considering the amount of interest-free days a card offers can be important to ensure you’re not unintentionally paying interest.

What other features does the card offer? Some business credit cards may offer features such as data and software integration to help with reporting, employee card spending controls and limits, security and account monitoring tools and the ability to add additional cardholders (either free of charge or for a fee).

Will you be transferring a balance to the new card? When transferring an existing balance from one business credit card to another, you’ll generally need to pay a balance transfer fee. This is usually charged as a percentage of the balance transferred. Many balance transfer credit cards will offer a 0% or low interest rate for a certain amount of time before reverting to a higher interest rate (e.g., 4.99% for 12 months and then 20.24% after).

What are the best business credit card providers in Australia?

If you’re looking for the best business credit card, consider the winners of Canstar’s annual Business Credit Card Awards, which recognise the financial institutions that offer business credit card products with outstanding value in Australia.

Across the three different award categories, five financial institutions topped the list nationally:

• Outstanding Value – Business Credit Cards: Low Cost: Commonwealth Bank, St. George and Westpac
• Outstanding Value – Business Credit Cards: Rewards: American Express and St. George
• Outstanding Value – Business Credit Cards: Frequent Flyer: American Express and ANZ

What is a business credit card?

A business credit card is a credit card that can be used for work-related purchases. They can be issued to a company or business that holds an Australian Business Number (ABN), and multiple cards can be held by different staff members.

Business credit cards can be a helpful way for business owners to separate personal transactions from work-related expenses. As the funds used are taken on credit, a business credit card can also help with cashflow management, although there are costs involved including potential interest charges and fees.

Corporate credit card vs business credit card: What’s the difference?

While any business can typically apply for a business credit card, corporate credit cards (also known as corporate charge cards or commercial credit cards) are typically only available for large companies that need credit cards for a larger number of personnel and which may also, in some cases, need a credit card management system.

What types of business credit cards are there?

In general, there are a few different kinds of business credit cards available in Australia, with different features, depending on the needs of the business owner. The most common types are:

• Rewards cards: May be useful for businesses that want to be rewarded for their spending.
• Low-cost cards: May be useful for businesses that want a low interest rate with no annual fee.
• Frequent Flyer cards: May be useful for businesses with staff who undertake a lot of work-related travel.

There are three main credit card payment networks that provide credit cards in Australia – these are Visa, MasterCard and American Express. Their cards are available from a wide array of banks, financial institutions and credit unions around the country.

How do business credit cards work?

Business credit cards are typically taken out by:

• Business owners who want to separate their business expenses from their personal spending. In this scenario, the business owner would have a credit card in their business name, and would perhaps have a personal credit card as well. Business expenses would go on their business card and be paid for out of business funds, potentially simplifying financial record-keeping.
• Companies that want to provide a way for employees to pay for business-related expenses, without the employee having to dip into their personal funds and claim those expenses back later from the company. Usually the employer issuing the card has a set of rules around what can be charged to the card, and what the employee must pay for themselves. For example, a company may allow employees to pay for client entertainment expenses on that card but require receipts and details of the event be provided to the company as evidence that the expense was justified.

Personal vs business liability: Who is responsible for the business credit card debt?

With all credit cards, ‘liability’ for the debt has to be assigned—who (or what, in the case of a company) is ultimately responsible for the debt. Business credit card liability is an important consideration when taking on a credit card product. This is because if the card is in default and a lender needs to take action on an outstanding balance, they will pursue the person or company which holds the liability.

• Personal liability: Where the person taking out the card (and not the company) is responsible for paying the debt on the card. Usually, this would be the business owner.
• Joint and several liability: Where multiple people are responsible for the debt, such as where multiple people are partners in a business and share financial responsibility.
• Business liability: Where the business itself is responsible for the debt.

The liability information for a business credit card is typically listed in the card’s terms and conditions. This documentation will generally be available from the payment network or financial institution offering the card.