Discover Business Card Review | CreditShout

Discover Business Card Review

By Kevin / January 9, 2015

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Editor’s Note: Discover discontinued this business rewards credit card. You can find our current list of top business credit cards by clicking here.


CREDITSHOUT RATING:
Very Good
Verdict: The Discover Business card has no annual fee and earns up to 5% back. Unfortunately, the rewards are just not up to par with competitors, and you’ll earn as little as 0.25% back on spending with few perks. You’re better off with a different business card like the Chase Ink Cash card, which also has no annual fee but much better rewards.

Discover Business Rewards Program

The Discover Business card launched in 2006 as Discover’s first venture into the small business card industry. Its rewards program has been changed a few times, in some ways for the better. There are actually two versions of the card: the regular version that earns cash back and the Discover Business Miles card, which earns miles. Both cards have no annual fee, but the rewards program is a little trickier than it seems at first.

Here’s how the rebates work now:

  • 5x back on office supplies (on the first $2,000 spent annually)
  • 2x back on gasoline (on the first $2,000 spent annually)
  • 0.25% back on all other spending on the first $5,000 a year; 1% back after exceeding $5,000

You can also shop through ShopDiscover.com to earn an unlimited 5-20% back when you shop at partner retailers like Walmart and Best Buy.

You can redeem your cash back for statement credits, deposits in your bank account, charitable contributions or gift cards.

Note: The Discover Business Miles card is almost the same, except you get miles instead. Each mile is equivalent to $0.01, which can be redeemed for statement credits against travel expenses. The card earns 1 mile per $1 on regular spending and 2x miles on travel and gas purchases (which applies to the first $5,000 in annual spending in these categories combined).

Other Cardholder Benefits

The Discover Business card, like the consumer cards, allows you to earn 5% to 20% back through ShopDiscover online partners. The card also comes with additional benefits, such as the one-year extended warranty program, up to $50,000 in rental insurance and $1 million in travel accident insurance.

Pros
  • No Annual Fee.
  • No foreign transaction fee.
  • Up to 5% cash back on office supplies and 2% back on gas (with a low cap).
Cons
  • Not as widely accepted as Visa/Mastercard.
  • Cash back is as low as 0.25%.
  • Higher cash back on gas and office supplies is capped to the first $2,000 in annual spending, then drops back to 1%.
  • Account balance reports to your personal credit report.
How Does it Compare?

The Discover Business card is often overlooked by small business owners, and with good reason. The tiered rewards on spending is a big letdown, and you can do better. There are many other business cards out there that offer better rewards, including a few that also have no annual fee.

A better option is the Chase Ink Cash Business card, which has no annual fee with a $200 sign-up bonus once you spend $3,000 during the first three months. The card also has a 0% intro APR on balance transfers and purchases for a year. The Ink Cash card gives you 5% back on the first $25,000 a year on office supplies and landline, cell phone, internet and cable services; 2% back on the first $25,000 at gas stations and restaurants and 1% back on everything else. The upgraded version of the card — the Ink Plus Business card– has an annual fee of $95 but the rewards are even greater.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone. Additionally, the opinions of the commenters are not necessarily the opinions of this site

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