Discover it® Business Card Review: Is it a Good Card for Your Company?

Discover it® Business Card Review: Is it a Good Card for Your Company?

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The Discover it® Business Card isn't a bad credit card for your business, but when compared to other leading cash back business cards, it falls short. It offers a cash back rate that's slightly below what the best card in the space offers. However, the card can be a solid pick for businesses expecting abnormally large expenses during their first year with the card, thanks to its great sign-up incentive. Below, we'll discuss what kind of businesses would benefit from applying for this card and how it stacks up against other top business credit cards.

Discover it® Business Card Review: A Decent Cash Back Card for Businesses

The Discover it® Business Card offers 1.5% cash back on every dollar spent on all purchases, but there's at least one business card on the market that's currently offering unlimited 2% Cash Back for your business on every purchase, everywhere. Meaning, if you're just after the highest cash back rate available, you'd be better-served by a different credit card. The difference between a 1.5% cash back card and a 2% cash back card may seem small, but for businesses especially, it can result in drastic differences in the rewards they earn. Assuming you're spending $100,000 on your business card per year, over a five-year period, you'd be leaving $2,500 on the table, should you opt for a 1.5% cash back on every dollar spent on all purchases card over a 2% Cash Back for your business on every purchase, everywhere.

The type of business that would benefit the most from the Discover it® Business Card is one that expects large expenses during their first year with the card. That's because Discover matches all the cash back you earn at the end of your first year. This means that during that first year with the card, you'll effectively have a 3% cash back rate on all your spending.

So what's the downside? Well for one, the card doesn't come with a traditional sign-up bonus. Among the best business cards, the value of a sign-up bonus is typically anywhere from $200 to $500. That said, if your business has tens of thousands of dollars in expenses, the cash back match at the end of the first year is a better deal over one of these traditional bonuses.

Another downside is that Discover isn't as widely accepted as other networks, like Visa or Mastercard. This could be a major drawback if your business deals with international vendors or if you're planning to use the card for international travel.

Bottom Line: The Discover it® Business Card has the potential to be one of the most rewarding credit cards for businesses with large expenses in the coming year. For all other businesses, we recommend reading about some alternative credit card options, below.

How Does the Discover it® Business Card Compare to Other Cards?

The Discover it® Business Card is a decent card, but most business owners would fare better with a different credit card. Below, we provide key comparisons against cards that we believe should be considered by any business owner.

The Discover it® Business Card vs the Capital One Spark Cash for Business

The Discover it® Business Card is actually the superior card up until you reach $19,000 of spending per year. At that point, the extra % cash back rewards earned with the Capital One Spark Cash for Business start to make the Capital One card the more rewarding choice. The Capital One Spark Cash for Business also comes with one of the better bonuses available on a business card — Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening.

The Capital One Spark Cash for Business is a Visa card, which is great news for business owners, since Visa is one of the most widely accepted payment networks. Unlike Discover, Visa is frequently accepted at international locales, meaning the Capital One Spark Cash for Business could be a handy card to have for businesses that travel. The Capital One Spark Cash for Business also doesn't come with a foreign transaction fee, so you won't have to worry about costly fees eating up your cash back rewards.

Highlights

  • 2% Cash Back for your business on every purchase, everywhere.
  • $0 intro for first year; $95 after that
  • Get employee cards at no additional cost and earn rewards on their business expenditures.

The Discover it® Business Card vs. the Capital One Spark Cash Select - $500 Cash Bonus

On Capital One's Secure Website

We crunched the numbers, and we calculate that if your business spends $13,333 or less per year, then the better card will be the Capital One Spark Cash Select - $500 Cash Bonus. That's because both cards have the same 1.5% Cash Back on every purchase, meaning the better card between these two will depend on which sign-up incentive is more valuable for your business. If your business is spending more than $13,333 per year, Discover's cash back match at the end of the first year becomes worth more than $200, making the Discover it® Business Card the better card.

Highlights

  • 1.5% Cash Back on every purchase
  • $0 annual fee.
  • $500 Cash Back once you spend $4,500 on purchases within the first 3 months from account opening

The Discover it® Business Card vs. the Ink Business Cash® Credit Card

On Chase's Secure Website

The Ink Business Cash® Credit Card is the ideal card for businesses that have less than $25,000 in expenses per year. At those lower levels of spending, businesses can Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn.. As we've touched on earlier, the best the Discover it® Business Card will ever achieve is 3% through Discover's cash back match. The one downside is that the higher end of the cash back spectrum on the Ink Business Cash® Credit Card is reserved for very specific expenses, like any spending at office supply stores.

In terms of short-term rewards, the Ink Business Cash® Credit Card performs admirably as cardholders can earn a sign-up bonus. That's on par with some of the best sign-up bonuses made available on business credit cards. To earn the bonus (Earn $750 bonus cash back after you spend $7,500 on purchases in the first 3 months from account opening.), cardholders will have to spend a dollar amount that we deem a reasonable spending threshold for most companies.

Highlights

  • $0 annual fee.
  • Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn.

The information related to the Discover it® Business Card has been independently collected by ValuePenguin and has not been reviewed or provided by the issuer of this card prior to publication.

The Capital One Spark Cash for Business card may no longer be available.

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How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).