Find Out Business Card Review

Discover it full business card review

  • Flat-rate cash back

  • APR launch offer

  • First Year Cash Back Bonus

Benefits explained

  • Fixed cash back: For a card with no annual fee, the Discover it Business card offers great rewards. And they come in the form of cash back, at a flat rate. This contrasts with variable category cash back rates or more complex rewards in points or miles, such as some other business cards offer. You’ll get 1.5% unlimited cash back on every purchase you make, and your rewards never expire. If you spend $ 10,000 in a year with your business credit card, you’ll earn $ 150 in cash back.
  • Launch APR 0%: The Discover it Business card offers an introductory APR offer of 0% on purchases for 12 months after opening the account. This puts it on a par with the 0% APR offers of some other no-charge business cards. As with these cards, after the introductory period expires, the APR reverts to a market rate, which for the Discover it Business card is between 12.99% and 20.99%, depending on creditworthiness. For a small business owner, the introductory APR is a major advantage. By giving you 12 months to pay off large purchases you make when you open the account, like office equipment or a new computer, without paying interest charges, it gives you cash flow flexibility and more.
  • Matching cash bonus for the first year: Not all cards with no annual fee offer a cash bonus. This makes the incentive offered with the Discover it Business card welcome, although it falls short of the best bonuses for business credit cards with no annual fee. At the end of your first year as a cardholder, Discover will automatically match any Cash Back Rewards you’ve earned throughout the year. There is no limit to the amount you receive from this offer. The more you spend, the more you earn. If you won $ 300 in cash back rewards, for example, Discover would offer you a dollar-for-dollar match, giving you a total of $ 600 in rewards. Winning $ 600 would earn a bonus of that amount, for a total of $ 1,200, and so on.

Disadvantages Explained

  • Limited benefits: Although the Discover it Business Card offers valuable rewards and a year-end cashback bonus, its benefits are relatively minimal, as with virtually all cards issued by Discover. You get free credit cards for employees, but not much else – and those are almost standard among the card’s competitors anyway. In particular, this card, like most of Discover’s others, lacks travel-related extras. It joins most cards with no annual fee because it lacks luxury perks found on paid travel cards, like travel credits, access to airport lounges, and free hotel upgrades. It even lacks some features that are frequently offered by competing no-charge cards, such as rental car insurance coverage, travel insurance, and extended warranty protection.

The Discover it Business Card is best suited for a small business owner who wants a no-fee credit card that offers simple rewards for everyday purchases. While some other business credit cards offer higher reward rates, many of these alternatives offer different rewards for different categories of spending, which complicates matters. In contrast, the Discover it Business card gives you the same 1.5% cash back rate on every purchase.

This card is also a good choice for use abroad, as it does not have the overseas transaction fee, typically 3%, that many cards charge on purchases made outside the country. .

If you sometimes forget to pay your business bills or have cash flow issues that keep you from doing so for a while, you might appreciate the lack of APR penalty from this card. Imposed by some cards when payments are missed entirely, these higher punitive interest rates often apply not only for the month you missed a payment, but also for some time afterward.

Discover the Business Bonus

With most credit cards, you can earn a bonus if you spend a certain amount of money in the first few months after opening an account. However, the Discover it Business card creates its bonus in a different way.

In short, it determines your bonus based on what you spend in the first 12 months of joining the account. After that first year is over, Discover will match any cash back rewards you and other employees who are on the account have earned during that time. There is no limit to how much you can earn, so this bonus can be lucrative.

For example, suppose you charged $ 5,000 on business supplies, such as hardware, supplies, and advertising on the Discover it Business card in your first year with the card. With 1.5% cash back, you would earn $ 75 in rewards on these purchases. But the card’s Cashback Match would double those winnings, meaning you would actually get $ 150 in rewards for purchasing those supplies and enjoy a 3% cashback rate in that first year.

Reward Details

The Discover it Business card rewards structure is simple – you’ll earn 1.5% unlimited cash back on every purchase you make. There is no limit to the amount you can earn and your rewards never expire.

Details on how to use rewards

When it comes to redeeming your rewards, Discover offers several options. You can redeem your cash back as an e-deposit, statement credit, or charitable donation when you’ve only accumulated a dime.

If you prefer to redeem your rewards for gift cards or e-certificates from business partners, you can do so once you have at least $ 5 in rewards.

An additional potentially lucrative option is to redeem the cash back for a gift card at Discover partners including American Eagle, Banana Republic, Gap, LL Bean, Bath and Body Works, Omaha Steaks, Old Navy, Black Angus, Foot Locker. , Nike and Under Armor.

You must accumulate at least $ 5 in rewards to redeem them for gift cards. For other redemption methods, you can redeem rewards when you’ve earned as little as a dime.

While these partners are not necessarily compatible with the company’s spending, the gift cards they offer can be useful as thank you gifts to your employees, suppliers, or customers.

How to Maximize Your Rewards

To get the most out of your card, use it for every business purchase you make, especially if you don’t have other business cards that might offer better returns on at least some of your spending.

Such overall use will be particularly lucrative in your first year as a cardholder, when matching the card with all the cash back rewards you earn means that you will effectively earn 3% cash back on every purchase. That’s an exceptional rate of return for any business credit card.

If you are more than a one-man business, consider adding cards to the account for anyone who works for you and makes purchases as part of their job. Having these employees use a corporate card will not only maximize the rewards your business earns, but also reduce the costs and hassle of tracking expenses. Most or all of the business’s purchases will conveniently be listed on the same 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 marks. According to the 2020 JD Power Small Business Credit Card Satisfaction Study, Discover was the highest ranked card issuer, ahead of 10 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 live chat or by calling 1-800-DISCOVER.

Security functions

The Discover it Business card has some basic security features that are standard for corporate credit cards. Discover, like many other card issuers, allows you to freeze and unlock your account as needed and track your credit report online or through the mobile app. The company will notify you if there is any suspicious activity, and you are never responsible for any unauthorized charges, which are also standard features. Discover also provides free social security number alerts to alert you if your information is showing up on the dark web, if it is enabled.

Our verdict

If you’re a small business owner looking for a simple reward card for your day-to-day expenses, the Discover it Business Card is a smart choice. You don’t have to worry about remembering expense categories, and you’ll earn 1.5% cash back on every purchase you make. Thanks to the bonus, your reward rate is actually 3% cash back for your first year as the cardholder.

With a 0% introductory APR offer for 12 months on new purchases, this is also a good option if you are planning to make a large purchase. You will benefit from interest-free financing for a full year.

The Discover it Business card offers simplicity and decent rewards. However, it may be worth pairing it with another business credit card that offers a higher reward rate and more benefits, especially after the first year ends and the CashBack offer expires. Discover match. For example, the Chase Ink Business Preferred card has an annual fee of $ 95, but you’ll earn 3 Ultimate Rewards points per dollar spent on travel, shipping, internet, cable, phone, and ad purchases combined. With each point worth around 1.6 cents, according to Investopedia’s assessment, you would earn significantly more in these categories than with the Discover it Business card. Adding another business card will also give you access to travel features that Discover it Business lacks, such as rental car coverage, travel insurance, and route dispatch. The Chase Ink Business Preferred adds all three of these, as does the Chase Ink Business Unlimited card, which has no annual fee. Capital One’s Spark Cash, with an annual fee of $ 95, offers them as well, along with a 2% lump sum cashback on all purchases.

About Mildred B.

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