Bank of America launches new flat-rate business credit card

Bank of America has announced the launch of a new business credit card, the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® credit card.

The new card is the consumer version of the Bank of America® Unlimited Cash Rewards credit card which launched in July.

See related: Bank of America launches new 1.5% cash back card

The Business Advantage Unlimited Cash Rewards offers flat-rate cash back with no annual fee and can be an excellent option for small business owners looking for a simple rewards credit card that will earn on all their spending.

“Running a business can be challenging, but earning rewards on your spending should be simple and convenient,” says Chris Wong, Small Business Products executive at Bank of America. “With the launch of the Business Advantage Unlimited Cash Rewards card, we’ve streamlined the way entrepreneurs are rewarded for their spending, so they can focus on running and expanding their business.”

What the new Business Advantage Unlimited Cash Rewards card offers

The new card earns 1.5% cash back on all eligible purchases. Rewards don’t expire, and there’s no annual cap.

For business cardholders participating in the Preferred Rewards for Business program, the rewards rates can go higher – up to 2.62% cash back.

To participate in the program, a cardholder must meet a balance requirement across Bank of America and Merrill accounts and maintain a daily average of that balance for at least three months. The cash back boost is one of the benefits included with the program and varies based on the membership tier.

Business Advantage Unlimited cash back rates for Preferred Rewards members

Preferred Rewards tier Balance requirement Cash back boost Total cash back rate
Gold $20,000 25% 1.875%
Platinum $50,000 50% 2.25%
Platinum Honors $100,000 75% 2.625%

There are several ways cardholders can redeem their cash back rewards: as a deposit to their Bank of America checking or savings account, as a statement credit to the card or as a check.

New cardholders can also earn a sign-up bonus of $300 in statement credits after they spend at least $3,000 with the card in the first three months.

Should you apply for the Bank of America Business Advantage Unlimited Cash Rewards?

The new business card from Bank of America can be a solid choice for small business owners who value a simple yet effective rewards system and prefer credit cards that don’t charge annual fees.

At the same time, before you decide to apply for the Business Advantage Unlimited Cash Rewards, make sure to consider other options.

For example, the Ink Business Unlimited® Credit Card is another no-annual-fee business credit card that earns 1.5% cash back. However, it offers a higher sign-up bonus – $750 bonus cash back after you spend $7,500 on purchases in the first 3 months with the card.

You can also look into The Blue Business® Plus Credit Card from American Express which also charges no annual fees and offers 2 points per dollar on eligible business purchases (up to $50,000 in spend per year, 1 point per dollar thereafter).

That said, if you’re banking with Bank of America and participating in the Preferred Rewards program, the rewards boost may make the new Business Advantage card the most lucrative option for you.

Bottom line

The new Bank of America Business Advantage Customized Cash Rewards Mastercard is an excellent choice for small business owners qualified for the Preferred Rewards for Business program. These cardholders will be able to get outstanding rewards rates out of this no-hassle business credit card.

Business owners who aren’t participating in the program may also get plenty of value out of Bank of America’s new offering, but it’s best to shop around and check out other available options before applying.