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Top 7 Business Credit Cards in Canada

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Some of the best business credit cards in Canada are offered by financial institutions such as the Bank of Montreal, CIBC, TD Bank, and RBC. They feature cashback and rewards points, low annual fees, low purchase rates, insurance perks, and other beneficial features.

Rewards

CIBC Aerogold® Visa for Business

CIBC Aerogold Visa for Business comes with travel benefits, extensive insurance coverage, and low interest rate. Customers are offered 35,000 bonus miles and 1.5 miles per $1 on purchases made at gas stations, travel agencies, car rental agencies, hotels, and airlines. All other purchases earn at 1 point per $1. Rewards points can be redeemed for merchandise, entertainment, car rentals, gift cards, and getaways. Rewards are offered across different categories such as sports and outdoor merchandise, home and garden, health and wellness, fashion and accessories, and activities and entertainment. The category of activities and entertainment includes SPA and gateways, attractions and parks, and events and dining. Examples of travel rewards are travel accessories, travel and cruise gift cards, and car rental certificates. Miles can also be used to pay expenses such as surcharges, fees, and taxes on airfare. CIBC Aerogold Visa also features extensive insurance coverage, including trip interruption and trip cancellation, common carrier accident, auto rental collision, and flight delay and baggage coverage. Mobile device and hotel burglary insurance are also available. Only customers with a minimum household income of $35,000 qualify.

  • Cash interest rate: 50 percent
  • Purchase interest rate: 12.99 percent
  • Annual fee: $180

TD Business Travel Visa Card

Toronto-Dominion offers a travel credit card with a selection of automotive, travel, and everyday benefits. Customers earn 3 points per dollar on business-related purchases, 6 points on booking travel through Expedia by phone, and 9 points on booking travel online. The card also comes with insurance perks such as lost and delayed luggage, common carrier travel accident, trip/flight delay, and travel medical insurance. Automotive benefits are also offered, including low base rates at Budget Rent a Car and Avis Rent A Car and auto rental collision/loss damage coverage.

Under the Visa SavingsEdge Program, customers qualify for generous discounts of up to 25 percent which apply to business-related purchases.

When applying, clients are asked to provide documents such as articles of incorporation, partnership agreement, or master business license, depending on the type of business (corporation, partnership, or sole proprietorship). Customers may also be asked to present their business financial statements and notice of assessment. They may apply by phone, at a local branch, and by booking an appointment.

  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $149
  • Additional cards: $49
  • Minimum credit limit: $1,000

Cash Back

Scotia Momentum® for Business VISA

Also a premium business card, Scotia Momentum for Business features up to 3 percent cashback on business expenses. Cash back is also offered on recurring payments such as gym memberships, insurance coverage, telecommunications, and subscriptions. Expenses that qualify for cash back include purchases made at office supply stores, restaurants, and gas stations. Supplementary cards also earn cash back. Business customers also benefit from insurance perks such as rental car collision and travel emergency medical insurance. The travel emergency medical insurance, for example, covers expenses such as surgeons’ and physicians’ fees, licensed ambulances, hospital stays, prescription drugs, medical supplies and services, and nursing care.

An added benefit is the fact that Scotiabank offers a low introductory rate of just 2.99 percent which is applicable to balance transfers made during the first six months. The credit limit is between $500 and $100,000. Visa SavingsEdge is also a useful feature available to qualifying businesses which allows them to get access to discounts and thus reduce costs. Customers are offered discounts on business purchases at participating merchants such as Blue Mountain, Sage 50, The UPS Store, Umbra, National Car Rental, and more. Discounts are offered on items in different categories, including entertainment and travel, telecommunications, and electronics, computer, and retail. Merchants offering discounts also operate in industries such as hotels, business software and publications, and business services and products. Discounts are in the range of 3 – 10 percent and up to 25 percent.  To enroll in the program, cardholders are asked to fill in details such as postal code, business name, and industry (i.e. retail, real estate, manufacturing, transportation, construction, etc.).

  • Annual fee: $49
  • Supplementary cards: $29
  • Interest rate: 19.99 percent
  • Grace period: 25 days

No Annual Fee

BMO CashBack® Business MasterCard®

This is a good choice for customers looking for a no annual fee credit card, featuring a welcome bonus, money back, and optional employee cards. In addition to saving on annual fees, holders are offered 6 percent cash back on internet and phone bills, office supplies, and gas purchases during the first 4 months. Purchases made after the promotional period earn 1.5 percent cash back. Gas purchases at Shell locations earn at 1.75 points per dollar.

Additional benefits include extended warranty, automatic rebates at participating retailers, and pre-authorized payments. In addition to pre-authorized payments, bills can be paid at any BMO branch, online, by phone, and by mail. Customers are also offered emergency cash advances and replacement cards and assistance with stolen and lost cards.

Depending on the type of business, customers are asked to bring documents such as master business license, trade name registration, partnership agreement, and articles of association. Corporate customers must bring documents such as corporate profile report, articles of amalgamation, articles of amendment, and complete articles of incorporation. Business customers also provide details such as type of ownership, percentage ownership, nature of primary business, and occupation.

  • Cash advances: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $0

Protection and Insurance

RBC® Avion® Business for Visa

This card comes with an extensive insurance coverage, including extended warranty, liability waiver, rental car, and trip interruption and trip cancellation insurance. There are added incentives such as 20,000 welcome points, fuel discounts, and travel rewards, including tours, cruises, car rentals, hotels, and packaged holidays. Customers are free to choose from different rewards such as gift cards, merchandise, and Apple accessories and products. Every dollar spent on purchases earns 1 rewards point. Cardholders also earn triple rewards points on travel experiences offered by Carlson Wagonlit Travel and double rewards points on truck and car rentals by Thrifty. There are also financial rewards and the option to donate to a charity, pay with points, or convert points.

  • Cash advance rate: 22.99 percent
  • Purchase rate: 19.99 percent
  • Annual fee: $120
  • Additional cards: $50

American Express® Business Gold Rewards Card

American Express also offers a rewards card that comes with a generous bonus of 25,000 points. Rewards points can be transferred to loyalty programs, used toward domestic or international airfare, or redeemed in the form of statement credit. Every dollar in travel purchases earns 2 points and so do purchases made at drugstores, grocery stores, and gas stations. Qualifying travel purchases include cruises, car rentals, hotel accommodation, and airfare. Every dollar in everyday purchases earns 1 point.

One of the main benefits for cardholders is the comprehensive insurance coverage. Customers are offered travel accident, baggage delay, flight delay, and hotel/motel burglary coverage. Car rental damage and theft, trip interruption, and stolen and lost baggage insurance are also available. Out of province/country emergency medical coverage is included as well.

This card also comes with a host of travel benefits, including complimentary room upgrades, vehicle upgrades, and hotel credit toward golf, spa, and dining.

Residents and citizens who have a Canadian credit file qualify provided that they are of the age of majority.

  • Annual fee: $250
  • Grace period: up to 31 days
  • Additional cards: $50

Low Interest Rate

CIBC bizline® Visa Card for Small Business

This offer by CIBC is ideal for customers who wish to save on interest rates and still benefit from perks such as a high credit limit, additional cards, and insurance coverage. Holders are free to request up to 9 additional cards. The minimum annual income is $35,000. This credit card is also a good choice for business owners with revenues in the range of $35,000 – $5 million.

Cardholders are offered common carrier accident insurance and a spend manager solution to track and organize spending, set alerts, and develop customized budgets. The interest rate is based on the applicant’s credit score which makes this card a good choice for business owners with very good and excellent credit histories.

  • Purchase interest rate: CIBC Prime + 1.5 percent
  • Cash interest rate: CIBC Prime + 1.5 percent
  • Annual fee: none
  • Additional cards: no annual fee

There are plenty of premium business credit cards that feature low interest rates, introductory rates, no annual fees, extensive insurance coverage, and airmiles, rewards points, and cash back. Some cards also feature complimentary bonus points, complimentary concierge, free additional cards, and attractive discounts on office supplies, equipment, and other business-related expenses.

Cashback vs. Rewards Credit Cards – What is the Better Choice?

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Cash back and rewards cards are often reserved for creditworthy clients with high income and offer exclusive perks and discounts. The question whether a cash back or rewards card is a better choice depends on many factors, including financial habits and lifestyle, personality, short- and long-term goals, and credit history. Customers who are frequent travelers often opt for a rewards credit card. Some people also choose a rewards card to get merchandise rewards or services. Most cash back cards offer 1 percent back but there are attractive options. Look for cards that feature extra points on a selection of categories you will actually use.

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Cash Back Credit Cards

Benefits

Cash back cards offer plenty of benefits and perks such as long interest-free periods, low introductory rates, and special promotions that allow holders to earn at a double or triple rate. Signature cash back cards offer premium benefits and exclusive payback schemes to creditworthy customers. Some issuers feature a high earn rate of 4 – 5 percent during the first 6 months to attract clients and encourage spending. It is a good idea to pay the balance in full, however, because there are cards with interest rates of 19 – 25 percent. Some cards go with higher rates or annual fees in exchange for perks such as no limit on cash back, no rotating categories, no annual fee, and others. Some issuers also emphasize the fact that points never expire and there is bonus cash back if you reach a certain spending level.
On the downside, some issuers have annual income requirements and usually offer better terms to clients with stellar credit. There are issuers that offer eligibility calculators online to help customers make the right choice based on factors such as annual income, current bank, and residential and employment status.

Features

Some cash back credit cards offer the option to transfer high interest balances and clients benefit from a zero introductory rate over the first 6 to 12 months. The standard rate usually varies between 12.9 and 24.9 percent and is based on income and credit rating. Issuers offer cards by Visa, MasterCard, and AMEX, and usually require good, very good, or excellent credit. Cash back is offered on purchases at different retailers and establishments such as coffee shops, movie theaters, retail stores, gas stations, and grocery stores.

How Does It Work?

In essence, cash back cards work like loyalty and rewards schemes. This means that customers are rewarded for charging purchases on their cards. Issuers feature different options, and there are programs that offer a flat rate on all purchases. Many issuers offer a rate of 1 percent, and cash back is paid in the form of statement credit or check. There are financial institutions that advertise extra cash back on certain categories. In any case, money back is usually calculated based on spending level. Once customers reach a certain level, they can request statement credit or order a check. Some programs are somehow complex in that financial institutions may not disclose which purchases earn at a flat rate and which categories earn at a tired rate.

Rewards Credit CardsLOC31

This is a type of a premium card with special perks and benefits, complimentary bonuses, and generous reward schemes. Airmiles and rewards cards usually required very good or stellar credit to qualify. Some financial institutions also have annual household income requirements. The goal is to deselect risky and unprofitable clients and move existing clients up-segment. In any case, it pays to check the credit requirements because some issuers accept only applicants with excellent credit while others are more lenient and offer specialty cards to customers with fair credit.

Benefits

There are plenty of benefits for holders, one being a degree of flexibility in how to use and redeem bonus points. Rewards are offered on all purchases, and customers earn extra points on certain dining, travel, and shopping categories. Financial institutions also emphasize the fact that premium cards offer a greater degree of control and freedom. То attract customers, retain existing clients, and encourage spending, finance companies and banks offer added incentives and benefits such as complimentary lounge access, access to sporting, concert, and exclusive events, complimentary benefits and upgrades at resorts and luxury hotels, and a lot more. Customers also benefit from a selection of platinum services such as shopping and dining advice, booking, travel planning, and assistance, and a lot more. Holders also benefit from priority boarding, discounts on in-flight refreshments and snacks, and flight upgrades. You can check your first bag free-of-charge as well.

Features

Specialty credit cards offer different types of rewards, including shopping rewards, discounts on gas, and points. Some cards go with zero introductory fees during the first 6 months or 1 year while others have no annual fee. There are also issuers that charge high annual fees in exchange for exclusive benefits and add-ons. The interest rate varies, based on income, credit rating, debt to income ratio, issuer, and other factors. Issuers usually offer a variable interest rate. Rewards can be earned on different types of purchases such as retail, gas, department store, and others. With airmiles cards, holders also collect points toward flight discounts and free flights. Some issuers offer points on standard purchases and extra points on flight and hotel bookings. With other issuers, clients earn 1 point on standard purchases and 2 points on utility, grocery store, and gas purchases.

How It Works

LOC32Rewards cards are popular among bank customers and offer access to attractive loyalty programs and schemes. Basically, cardholders earn points on all purchases charged to the card. The earn rate varies by issuer and purchase category. The points earned can be exchanged for travel and retail purchases or for cash rebates. Some providers also offer the option to redeem points for services. Basically, you can choose between cash and merchandise. Note that limitations and restrictions may apply and some types of purchases may be excluded. Customers are also offered bonus points for online bill payment.

Conclusion

The choice between cash back and rewards credit cards depends on many factors, among which spending habits, income level, lifestyle, and types of incentives and rewards and loyalty programs offered. There are other factors to look into, for example, the grace period, penalty rate, interest rate, balance transfer fee, annual fee, foreign transaction fee, and others. Some issuers also offer complementary and supplemental credit cards. The type of card to choose also depends on your spending level. Many customers use their card on a daily basis to get the most of the rewards or cash back scheme. The type of card to choose also depends on your credit rating. Creditworthiness is an important factor for financial institutions and they use it as an indicator to measure risk level. Customers with a solid payment history and on-time payments are offered premium cards with exclusive rewards and experiences. In fact, if you have fair credit, your application for a cash back or rewards credit card may be turned down. It pays to check your credit report for mistakes and omissions and improve your rating first and then apply for a specialty credit card.