Bank of America Announces Changes to Small Business Cash Back Program

Bank of America Announces Changes to Small Business Cash Back Program

Advertiser & Editorial Disclosure

Bank of America – or “BOA” – is a well-known player in the small business credit card realm. Its products include the popular Bank of America® Business Advantage Cash Rewards Mastercard® credit card, which has given companies flexible rewards for everyday business spending with no annual fee. The company recently announced some changes to the program, however, that will affect both new and existing members. Here’s what you need to know.

Bank of America® Business Advantage Cash Rewards Mastercard® credit card

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What’s New

The card originally offered 3% cash back on fuel and office supplies, with a cap at $250,000 in total purchases between the two categories. Purchases after that earned 1%. Restaurants earned unlimited (no cap) 2% cash back, and 1% was awarded for everything else.

Card changes include a slightly different rewards structure, along with new caps. Now, cardholders will get 3% cash back on the category of your choice (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), 2% cash back on dining, and 1% cash back on all other purchases.  The $50,000 cap is significantly lower than the $250,000 cap the card offered before but has a higher 3% earning tier that the old card didn’t offer.

The new 3% bonus categories include:

  • Fuel
  • Office supplies
  • Travel
  • Telecommunications
  • Computer services
  • Business consulting services

Like any card reward program, getting credit for these bonus categories will depend on how the line item charge is labeled on your statement. Services such as fuel may be easier for the card company to identify than business consulting, so understand how that works when making your selection for one of the bonus categories.

You can change categories once per calendar month, using the data from a customized online tool the card company provides to help you decide what category will give the best value. If you don’t choose upon opening your account, the fuel category will be selected by default.

Bonus Offer Changes

New applicants for the card will see the sign-on bonus change, as well. Previously, approved cardholders got a $200 bonus when they spent $500 within the first 60 days. The new offer is for a $300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening.. It’s a slightly bigger bonus, but you have to buy much more to get there.

How It Affects You

If you’re a big spender and will be consistently spending more than $250,000 in the select categories, you may find your cashback rewards to be limited. It’s also a bit disappointing for businesses who wanted to spread their high-reward spending between office supplies and fuel; now, you’ll have to pick one of the other for the higher tier.

The card is a big improvement for smaller spenders who won’t approach the cap, however, and the initial 3% category earning may make up for limits for even the high spenders. Existing business customers that use BOA for business or investment needs will be eligible for higher bonuses than what we listed here. Speak with your account rep for details. As with most reward programs, your mileage will vary.

The program changes affect new cardholders, but existing members can get in on the new structure by calling the card company and making a request. We recommend doing a thorough review of your spending in the last six months to see which structure best rewards your business spending.

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