Table of Contents
Currently rated one of our
- Best Discover Credit Cards
Full Review of Discover it Business Card
Pros
Reading: Discover it Business Card Review
- bland cash-back rewards
- Introductory APR volunteer
- first year cash spinal column match bonus
Cons
- express benefits
Pros Explained
- Flat Cash-Back Rewards: For a card with no annual fee, the Discover it Business card offers excellent rewards. And they come as cash back, at a flat rate. That’s in contrast to the varying cash-back rates by categories or the more complex rewards in points or miles, as some other business cards provide. You’ll get unlimited 1.5% cash back on every purchase you make, and your rewards never expire. If you spent $10,000 in a year with your business credit card, then, you’d earn $150 in cash back rewards.
- Introductory 0% APR: The Discover it Business card provides an introductory 0% APR offer on purchases for 12 months after account opening. That puts it on a par with 0% APR offers from some other no-fee business cards. As with those cards, once the introductory period expires, the APR reverts to a market rate—which for the Discover it Business card is between 12.99% to 20.99%, depending on creditworthiness. For a small business owner, the introductory APR is a major perk. By giving you 12 months to pay off major purchases made at account opening—such as office equipment or a new computer—without having to pay interest charges, it allows you cash-flow flexibility and more.
- First Year Cash Back Matching Bonus: Not all cards with no annual fee offer a cash bonus. That makes the incentive offered with the Discover it Business card welcome, even if it falls short of the best bonuses for no-annual-fee business credit cards. At the end of your first year as a cardmember, Discover will automatically match all the cash back you earned throughout the year. There’s no limit to how much you receive from this offer. The more you spend, then, the more you earn. If you earned $300 in cash back rewards, for example, Discover would give you a dollar-for-dollar match, giving you a total of $600 in rewards. Earnings of $600 would yield a bonus of that amount, for a total of $1,200, and so on.
Cons Explained
- Limited Benefits: While the Discover it Business card has valuable rewards and a cash back year end matching bonus, its benefits are comparatively minimal, as with virtually all cards issued by Discover. You do get free credit cards for up to 50 employees, but little else—and those are all but standard among the card’s competitors anyway. In particular, this card, like most others from Discover, falls short on travel-related extras. It joins most no-annual-fee cards in lacking luxury benefits found on travel cards with fees, like travel credits, airport lounge access, and free upgrades at hotels. It even lacks some features that are frequently offered by competing no-fee cards, such as rental-car insurance coverage, travel insurance, and extended warranty protection.
This Card is Best For
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Prefers uncomplicated rewards with single rate for all spending
minimalist
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Resists or refuses an annual fee on principle or due to cost
annual Fee Averse
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Earning a primary or side income from a small business
occupation Owner
The Discover it Business card best suits a humble clientele owner who wants a no-fee credit poster that provides simple rewards for everyday purchases. While some other occupation credit rating cards offer higher advantage rates, many of those alternatives offer different rewards for unlike spending categories, which complicates matters. By line, the Discover it Business calling card gives you the lapp 1.5 % cash-back rate on every purchase .
This menu is besides a decent choice for manipulation afield, since it doesn ’ t have the foreign-transaction tip, typically of 3 %, that many cards impose on purchases made outside the state .
If you ’ re occasionally unmindful about paying your business ‘ bills, or experience cash-flow crunches that prevent you from doing so for a small while, you might appreciate this card ‘s absence of a penalty APR. Imposed by some cards when payments are missed wholly, these higher punitive interest rates frequently kick in not only for the calendar month you missed a requital but for some time after that angstrom well.
Discover it Business Bonus
With most credit cards, you can earn a bonus if you spend a sealed total of money within the inaugural few months of opening an account. however, the Discover it Business card creates its bonus in a different way .
In abruptly, it determines your bonus based on how much you spend in the initial 12 months of explanation membership. After that first year is over, Discover will match all of the cash spinal column you and other employees who are on the explanation earned during that period. There ’ mho no limit to how much you can earn, so this bonus can be lucrative .
For example, let ’ s say you charged $ 5,000 on commercial enterprise supplies, such as equipment, supplies, and ad to the Discover it Business card during your inaugural year with the card. At 1.5 % cash back, you ’ five hundred earn $ 75 in rewards on those purchases. But the card ‘s Cashback Match would double those earnings, meaning you ’ d actually get $ 150 in rewards for buying those supplies—and enjoy a 3 % cash back rate over that first year .
Rewards Earning Details
The Discover it Business tease ‘s rewards structure is simple : you ’ ll gain unlimited 1.5 % cash back on every buy you make. There ’ sulfur no crown to how much you can earn, and your rewards never expire .
Rewards Redemption Details
When it comes to redeeming your rewards, Discover offers several options. You can redeem your cash back as an electronic deposit, statement credit rating, or charitable contribution when you have accrued american samoa little as one penny .
If you ‘d prefer to redeem your rewards for gift cards or eCertificates from retail partners, you can do therefore once you have at least $ 5 in rewards .
An extra, potentially lucrative choice is to exchange the cash back for a endowment circuit board at Discover partners, which include american Eagle, Banana Republic, Gap, L.L. Bean, Bath and Body Works, Omaha Steaks, Old Navy, Black Angus, Foot Locker, Nike, and Under Armour .
You must accrue at least $ 5 in rewards to redeem them for endow cards. For the other redemption methods, you can redeem rewards when you have earned ampere little as one penny .
While such partners may not inevitably be compatible with business expenditures, give cards from them might be utilitarian as thank-you gifts to your employees, suppliers or clients .
How to Maximize Your Rewards
To get the most value from your menu, use it for every commercial enterprise leverage you make—especially if you do n’t carry any other business cards that might offer better returns on at least some of your spending .
such blanket habit will be particularly lucrative during your first base class as a cardmember, when the card ‘s match of all the cash binding you earn means you ’ ll effectively earn 3 % cash back on every purchase. That ’ s an especial rate of restitution for any business credit wag .
If you ‘re more than a one-man enterprise, consider adding cards on the bill for anyone who works for you who makes purchases as depart of their job. Having these employees use a company tease will not merely maximize the rewards your commercial enterprise earns but minimize the cost and hassle of tracking expenses deoxyadenosine monophosphate well. Most or all of the business ‘ purchases will be handily listed on the lapp credit-card account .
Standard Benefits
- Download transactions to Quicken, Quickbooks, or Excel
- Free employee cards
Cardholder experience
When it comes to customer experience, Discover gets very high gear marks. According to the 2021 J.D. Power Small Business Credit Card Satisfaction Study, Discover was the third-ranked poster issuer, beating out seven other companies .
The card allows you to check your FICO credit score for free, and Discover ’ s customer service team is based in the United States. You can get help 24 hours a day, seven days a week via on-line chat or by calling 1-800-DISCOVER .
security Features
The Discover it Business card has some basic security features that are criterion for business credit cards. Discover, as with many other card issuers, allows you to freeze and unfreeze your account as needed and to monitor your credit report on-line or through the mobile app. The company will notify you if there is leery activeness, and you ‘re never responsible for unauthorized charges, which are besides standard features. Discover besides provides free Social Security Number alerts to notify you if your information appears on the dark web, if activated .
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Our verdict
If you ‘re a small-business owner looking for a square rewards card for your routine expenses, the Discover it Business poster is a smart choice. There ‘s no motivation to worry about remembering spend categories, and you ’ ll earn 1.5 % cash spinal column on every buy you make. Thanks to the bonus, your rewards rate is actually 3 % cash back for your first class as a cardmember .
With a 0 % introductory APR propose for 12 months on modern purchases, it ’ south besides a good option if you ’ re plan on making a major purchase. You ’ ll get interest-free finance for a unharmed year .
The Discover it Business card offers chasteness and decent rewards. however, it may be worth pairing it with another business credit menu that offers a higher rewards rate and more benefits—particularly after the first year ends and Discover ‘s CashBack Match crack expires. For model, the Chase Ink Business Preferred batting order has a $ 95 annual tip, but you ‘ll earn 3 Ultimate Rewards points per dollar spent on combine travel, embark, internet, cable television, phone, and advertise purchases. With every point worth about 1.6 cents, according to Investopedia ‘s evaluation, you ‘d earn well more in those categories than with the Discover it Business circuit board. Adding another business card will besides allow you access to travel features the Discover it Business lacks, like rental-car coverage, travel insurance, and roadside dispatch. The Chase Ink Business Preferred adds all three of those, as does the the Chase Ink Business Unlimited menu, which has no annual fee. The Spark Cash from Capital One, with a $ 95 annual fee, besides offers them, along with a flat 2 % cash-back on all purchases .
