Discover Credit Cards Review: What Are The Best Options for Business Owners?

Discover Credit Cards Review: What Are The Best Options for Business Owners?

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The Discover card has legions of loyal cardholders who are passionate about the company’s products. And they have good reason to love their cards, as Discover offers numerous customer friendly features not offered by most of its competitors. For example, Discover cards never have any annual fees, foreign transaction fees, or a penalty interest rates. Discover will automatically waive your first late payment fee, and it features 100% US based customer service. And for the last three years, Discover has achieved the highest rating in JD Power’s annual US credit card customer satisfaction survey, and it just earned the highest score in JD Power’s first survey of credit card mobile apps.

But unfortunately, there’s one thing that Discover doesn’t offer, a business credit card. Years ago, Discover had dedicated credit cards for business users, but it no longer offers these cards to new applicants. Today, small business owners who are fans of the Discover card have two options. One is to simply use a Discover personal card for business expenses (read here why this might not be a greatest idea as you should separate your personal and business expenses). Or, you can use another issuer’s business card that most closely approximates the benefits of a Discover card. Let’s take a look at these two options and find out which one is best for your needs.

Using a personal card for business expenses

The primary purpose of a small business credit card is to separate personal expenses from business charges, but that can be achieved by having another credit card of any type. However, those who use personal credit cards for small business spending will be foregoing some of the benefits that business cards offers, such as expense tracking and reporting functions.

Discover it Miles card

If you decide to use a personal Discover card for business purposes, the Discover it Miles is probably your best choice. It offers 1.5 miles per dollar spent on all purchases, with no limits. Miles can be redeemed for one cent each towards gift cards, merchandise, or statement credits towards any travel reservation. And after your first cardmember year, Discover will give you a bonus equal to the miles you’ve already earned, effectively doubling your rewards earned your first year. Finally, this card offers you a $30 credit towards in-flight Wifi purchases each cardmember year. As with all Discover cards, there’s no annual fee, and no foreign transaction fees.

Business cards alternatives to Discover

If you decide that you need a dedicated business card, consider these options that offer some of the features found on the Discover card:

Ink Business Cash℠ Credit Card

Ink Business Cash℠ Credit Card

Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account Learn More

Chase’s entry level business card offers new applicants the chance to Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening. Earn 5% cash back in select business categories. The 5% applies to the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year.

Rewards can be redeemed for cash back, merchandise, travel reservations, and gift cards. And if you have another Chase card that’s part of the Ultimate Rewards program, such as a Sapphire Preferred or Sapphire Reserve, then your rewards can be transferred to airline miles or hotel points. As with the Discover card, there’s no annual fee, but the Ink Cash does have a foreign transaction fee that is 3% of each transaction in U.S. dollars.

Blue Business℠ Plus Card from American Express

The Blue Business℠ Plus Credit Card from American Express
American Express is a Nav Partner
Terms, Rates & Fees

The Blue Business℠ Plus Credit Card from American Express

Limited Time Offer. Earn 10,000 extra Membership Rewards® points after you spend $3,000 in eligible purchases on Learn More

This new card is one of the few American Express business cards that has no annual fee. It offers 2x points on the first $50,000 spent on new purchases each year, and one point per dollar spent elsewhere. Points are earned in the American Express Membership Rewards program, which offers you merchandise, gift cards, travel reservations, or transfers to airline miles. There’s no annual fee for this card, but there is a 2.7% foreign transaction fee. (Editor’s Note: American Express is a Nav partner, but this results in no preferential editorial treatment.)

Costco Anywhere Visa® Business Card By Citi

The Costco Anywhere Visa offers competitive cash back rewards, but has no annual fee for Costco members. With this card, you can earn 4% cash back on all gasoline purchases, including those at Costco, although there is a $7,000 annual limit. You also get 3% cash back for spending at  restaurant and on travel purchases, 2% on all Costco purchases, and 1% elsewhere. You receive your rewards once a year in February as a coupon that can be redeemed for merchandise or cash at any Costco store.  There’s no sign-up bonus offered, but new customers receive seven months of 0% APR financing on new purchases. There’s no annual fee for this card with your paid Costco membership.

Ready to see your credit data and start building better business credit? Check Your Personal and Business Credit For Free (No Credit Card Required).

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About the Author — Jason Steele is an expert in the credit card industry. He is frequently quoted in national media and his work is regularly featured by mainstream outlets such as Yahoo! Finance, MSN Money, and Business Insider.

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