How to Leverage Gas Rewards Credit Cards with Your Business
When you run a business, no matter whether it is large or small, it is important to get every bang for your buck possible. One of the easiest ways to do that is with reward points for gas when a credit card is used. For this reason, there are many ways to leverage gas rewards on a business credit card.
The first way to maximize gas rewards is to research business credit cards thoroughly. All rewards programs are not created equally. Some cards only offer 1% cash back or rewards points. Others always offer a special rate of around 5%. Still others offer a promotional rate either for a few months after the initial opening of the card or during specific quarters of the year. If your business only fills up at one brand of gas, consider opening a brand specific card. These typically get a higher reward percentage than generic business credit cards. Citgo, Sunoco, Exxon-Mobile, and Hess are four of the bigger choices; however, there are many others from nationwide chains to smaller local chains. If your business is located in a more rural area or covers a large area, the extra hassle to go exclusively to one brand of gas may not be worth the extra expense to get to the pump. In this case there are two other options. One is to have more than one chain’s credit card; the other option is to have a generic rewards credit card. A specific station’s card typically will not offer any rewards on gas of a different brand.
If you have multiple employees, consider giving each an associate card. Limits can be set on specific cards; each credit card has a different number. This allows each employee’s purchases to be tracked individually. The perk to each individual having is a card is that the more gas is purchased the more will be earned in rewards. Think about making a business policy that prohibits employees from purchasing gas for company vehicles on anything except a credit card. For example, if an employee draws from petty cash to purchase gas, no rewards are earned.
With gas prices on the rise, the savings for using a business credit card with gas rewards can be substantial. The average savings for a small business annually is around $250.00 based on a 2% rewards rate. However, a larger business has the potential to save thousands. However, the rewards only are beneficial if the balance is paid off in full each month. A carried over balance at a 17.99APR will quickly decimate any potential savings.
There are many ways to save a lot of overhead for your business by using gas rewards credit cards. With a little research into the best card to suit your needs, your savings can become exponential quickly. Citi, Chase, and Capital One all have great generic gas reward program cards for businesses of every size. Using the tips outlined above will help you maximize the profitability of your business in the travel related expenses category.