Modest cash rewards
The Commerce Bank Business Rewards card gives cardholders the choice between point rewards and cash back, but the cash back rewards are significantly more generous. Cardholders who prefer points earn just one point for every dollar spent, with no additional bonuses. Meanwhile, cardholders who choose cash rewards get 1 percent cash back on general purchases, and then another 2 to 3 percent cash back on rotating purchases. Unfortunately, many of the bonus categories, such as child care and fitness, appear to be geared for consumers more than businesses, so you may not always benefit. However, there are some business-friendly categories that appear on a rotating basis, such as restaurants, and Internet and phone payments. So it’s worth taking the time to opt in to the rotating bonuses.
Restrictions on redemption
You may have trouble redeeming rewards when you’re ready for them – especially if you prefer cash back instead of points. To redeem your earnings as cash, you must redeem them as a statement credit on your credit card bill rather than in the form of a check or deposit. The statement credit helps shave down your overall balance, but it may not be as satisfying as redeeming cash in your account. You’ll also have to wait until you earn at least $25 worth of cash to redeem it. Commerce Bank doesn’t limit the total amount you can earn, though, so if you’re a heavy spender, you may take home a sizable amount. It also gives cardholders roughly four years to redeem their earnings.
Higher-than-average APR
The most disappointing feature advertised by the Commerce Bank Business Rewards is its relatively high APR for cardholders with excellent credit. To its credit, the Commerce Bank Business Rewards Visa card only advertises one interest rate, helping take the guesswork out of applying. Many business cards, by contrast, advertise a wide range of potential APRs, making it hard to know in advance which rate you’ll actually get. However, the single rate that Commerce Bank advertises – 14.9 percent – is significantly higher than the minimum rate offered by most business credit cards. The average business card, for example, charges a minimum APR of 13.11 percent. On the plus side, the card’s 14.9 percent APR is several points lower than the typical maximum interest rate. So if your credit is less than perfect, you may be able to get a better deal with this card.
Few benefits
Unfortunately, the Commerce Bank Business Rewards Visa doesn’t offer many benefits, making it even harder to justify the card’s pricier APR. It doesn’t offer any of the standard credit card perks that are ubiquitous on other cards, such as price protection and car rental insurance. Nor does it offer a sign-up bonus or an introductory APR. It doesn’t offer many business-specific benefits either. However, it does allow individual credit limits for employees, which is a big plus if you need to authorize multiple cards. It also offers an automatic discount program that can help you shave down monthly bills.
Reasons to get it:
- You have good enough credit to qualify for the Commerce Bank Business card but can’t qualify for a card with a lower rate.
- You want significant cash back and don’t mind keeping track of rotating categories.
- You already have an account with Commerce Bank and want a card with the same bank.
How to use it:
- To get the most value out of your card, choose cash instead of points.
- Monitor the card’s rewards page to see which purchase categories are eligible for additional cash back.
- Use cash back earnings to shave down your monthly balance.
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