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

Discover it® Business Card
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Discover it® Business Card
This card is not available through ValuePenguin.

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

Your business can likely find a better credit card offer than this one.
Editor's Rating: 3.0/5.0
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Editor's Rating

{"onCurrent":true,"message":"Our team rates credit cards objectively based on independent research, the features the credit card offers users, and how it compares with other available cards in its category. The ratings are the opinion of our editors, and are not influenced by any outside factors, including any compensation the site may receive from certain advertisers."}

3.0/5.0

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer.

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

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 unlimited 1.5% cash back, but there's at least one business card on the market that's currently offering unlimited 2% cash back. 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% back card over a 2% back card.

Discover it® Business Card
This card is not available through ValuePenguin.
Discover it® Business Card
This card is not available through ValuePenguin.

Discover it® Business Card

Discover it® Business Card
This card is not available through ValuePenguin.
Discover it® Business Card
This card is not available through ValuePenguin.
Annual Fee
$0
Regular APR
Credit Needed
{"onCurrent":true,"message":"There are various types of credit scores. Each creditor uses a variety of different types of credit scores to make lending decisions."}
Editor's Rating
{"onCurrent":true,"message":"Our team rates credit cards objectively based on independent research, the features the credit card offers users, and how it compares with other available cards in its category. The ratings are the opinion of our editors, and are not influenced by any outside factors, including any compensation the site may receive from certain advertisers."}

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

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

Since the Discover it® Business Card comes with no annual fee, it's actually the superior card up until you reach $19,000 of spending per year. At that point, the extra 0.5% 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—users can earn $500 after spending $4,500 in the first three 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

  • Earn unlimited 2% cash back.
  • $0 intro annual fee for the 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 for Business

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 for Business. That's because both cards have the same 1.5% cash back rate, 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.

Both cards feature 0% intro APR periods on purchases, but the offer on the Discover it® Business Card is slightly better at 12 months versus the nine months found on the Capital One® Spark® Cash Select for Business. The 12-month offer is decent in the realm of business credit cards, albeit, you could get an additional three months to pay down debt without paying interest through other business cards. After the intro APR offer ends, the Capital One® Spark® Cash Select for Business will have an APR of 14.74% - 22.74% (Variable) and the Discover it® Business Card will have an APR of .

Highlights

  • Earn unlimited 1.5% cash back.
  • No annual fee.
  • $200 cash bonus once you spend $3,000 within three months from account opening.

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

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 anywhere from 1% to 5% cash back with the Ink Business Cash℠ Credit Card. 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 $500 sign-up bonus. That's on par with some of the best sign-up bonuses made available on business credit cards. To get the bonus, cardholders will have to spend $3,000 within the first three months of account opening, which is a reasonable spending threshold for most companies.

Highlights

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

Business Card Comparison Tool

Business owners who still aren't sure which card is best for their companies can use our card comparison tool below. Once you enter the monthly expenses for your business, you'll receive an estimate on the amount of rewards you stand to gain with each card over a two-year period.

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Comments and Questions

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). ValuePenguin does not include all financial institutions or all products offered available in the marketplace.

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).

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