Spending power to rewards points: 4 ways business owners can get more out of charge and credit cards

Spending power, business efficiency and rewards points – do those sound like things your startup could use?

You might want to look deeper into what your business card (which could be a charge or credit card) can do.

No business owner wants to miss out on a good opportunity, especially if the outcome might help improve cash flow or give you more bang for your buck.

Whether you use a business card already or are just curious, it’s worth knowing what value they can provide.

Business cards can be used as cash flow tools whether you’re using a charge or credit card. What’s the difference? American Express® offers charge cards that do not incur interest – however, you will need to pay your balance off in full every month, as a fee is incurred if the amount is not paid off in full^¹ (more info here).

In contrast, a credit card has a fixed credit limit where you can choose to pay off your balance in full, or make payments over time. There is a minimum amount that needs to be paid and not paying your whole balance in full will incur interest charges.

That should all be music to the ears of business owners in need of working capital. But there are other benefits business owners and teams should know about, like the following:

1. Flexible spending power

You may see the term ‘no pre-set spending limit’, otherwise known as flexible spending power, pop up when researching the various Business Charge Cards offered by American Express.

This means that the amount you can spend is dynamic and can adapt based on your transaction patterns, your business’s credit rating and other factors.

The way you use their Business Charge Card can help your spending power grow, particularly in the first few months. Plus, to help maximise your spending power, you can make regular transactions and ensure you don’t miss any payments.

One thing to note: no pre-set spending limit only applies to American Express Business Charge Cards. With these Cards, you can also get up to 51 or 55 days to pay for purchases², depending on the Card you choose. Card Members have the option to also pay for purchases prior to the 51 or 55 days depending on their business needs.

2. Maximise rewards and benefits

Simple question: do you want to earn rewards or not? Business cards make it so that virtually every dollar you spend on your eligible everyday business expenses – whether it’s a laptop, a phone or internet bill or a bag of coffee for the coffee machine – can earn you rewards points³.

Different cards offer different points earn rates, redemption options and benefits, so make sure to do your research.

For example, the American Express® Platinum Business Card, offers up to 2.25 points per dollar spent on eligible business purchases and 1 point per dollar on government-related spend, with uncapped earning potential and no expiry date on points⁴.

On the Platinum Business Card, virtually every dollar you spend can help you earn points^⁵, which you can redeem directly on flights, accommodation and car rental with the American Express Travel Online booking service⁶.

If you travel a lot for work, access to local and international airport lounges⁷ could also be valuable to you.

3. Streamline employee expenses

Many business owners don’t have a straightforward solution to managing staff expenses.

That’s where American Express Business Cards can help streamline your employee expense processes. If your staff need to entertain clients, take work trips or order office supplies, they can put it on the Employee Cards.

As an employer, you can view and track staff expenses in real time. Plus, you can set spending limits for specific employee cards and monitor monthly outgoings to make smarter cash flow decisions.

An important sweetener: Employee Cards earn points at the same rates as the primary card, if you’re enrolled in a rewards program.

4. Pay suppliers who don’t take cards

Some suppliers will only take payments via bank transfers or cheques, which can be a speed hump in the payments process.

In this case, you might want to consider American Express AccessLine®, a feature that allows eligible Card Members to pay suppliers within Australia, even if they don’t accept Card payments⁸.

Their payment portal lets businesses use an eligible American Express Business Card to pay directly into a supplier’s bank account. Each time you pay a supplier with AccessLine, you could earn rewards points, if you are enrolled in a Rewards program.

Yes, points are a big deal. And so is cash flow for your startup. If you can get wins in both areas, you’re onto something.

Want to know more? American Express Business Cards reward you for your day-to-day business spend with American Express Membership Rewards Points, Qantas Points or Velocity Points. View the full range of cards to see which works best for your business needs.

This article is brought to you by Startup Daily in partnership with American Express.

This article is not intended as financial advice and all information has been prepared without taking into account your objectives, financial situation or needs. You should review the product information to decide if any product is suitable for you.

Terms, exclusions and conditions apply on American Express’ products and services, please click here for more information.

¹ Charge Card Late Payment Fees. A charge of three percent (3.0%) or $20, whichever is greater, will be charged on any overdue amount.

² Depending on your method of payment, when you make a purchase, when your statement is issued and whether or not you are carrying forward a balance on your account from your previous statement period. If you pay by direct debit, your payment will be processed 10 days after your statement is issued.

³ Earning points (this will depend on which Card you choose):

3.1. For the American Express Platinum Business Card, the American Express Business Explorer Card and the American Express Business Gold Plus Card.

Subject to the Terms and Conditions of the Membership Rewards program available here. Eligible spend/purchases do not include Card fees and charges, for example annual fees, interest, late payment, cash advances, balance transfers, traveller’s cheques and foreign currency conversion. Merchants classified as “government“ include the Australian Taxation Office, the Australian Postal Corporation (Australia Post), Federal/State and Local Government bodies. Industry specific earn rate may apply when you use a payment account, payment aggregator, services of a third party or online retailers that sell goods for another merchant. For example a payment made to Local Government bodies processed through a payment aggregator may earn rates at the government earn rate. There may be tax implications associated with participation in the Membership Rewards program. You are advised to check with your accountant or tax adviser for further information.

3.2. For the American Express Qantas Business Rewards Card:
 A business must be a Qantas Business Rewards Member to earn Qantas Points for business. Membership and the earning of Qantas Points as a business are subject to the Qantas Business Rewards Terms and Conditions. Points are earned in accordance with and subject to the American Express Qantas Business Rewards Card Points Terms and Conditions. Your business will earn 1.25 Qantas Points per $1 of everyday spend, which does not include annual fees, late payment fee and fees and charges for foreign currencies. Your business will earn 0.5 Qantas Points per $1 spent at participating merchants classified as ‘utilities’ including gas, water and electricity providers; ‘government’ including the Australian Taxation Office, the Australian Postal Corporation, federal/state and local government bodies; and ‘insurance’ excluding insurances offered by American Express. Industry specific earn rate may apply when you use a payment account, payment aggregator, services of a third party or online retailers that sell goods for another merchant. For example a payment made to Local Government bodies processed through a payment aggregator may earn rates at the government earn rate. Your business will earn 2 Qantas Points per $1 spent on the following Qantas Products and Services purchased on the Qantas merchant account (i.e. directly from Qantas): Qantas passenger flights (with a QF flight number), Qantas Holidays, Qantas Branded non-airfare products, and Qantas Frequent Flyer and Qantas Club membership joining and annual fees. Excludes Jetstar. For the full list of exclusions, please refer to the American Express Qantas Business Rewards Card Points Terms and Conditions. From 10 January 2024, once you have earned a total of 500,000 Qantas Points on your Card Account in a calendar year, your earn rate of 1.25 Qantas Points per $1 spent will change to 0.75 Qantas Points per $1 spent on everyday business purchases. All other earn rates (Qantas products, services and government, utilities and insurances spend) will remain unchanged. The points threshold is based on eligible Qantas Points earned during a calendar year and will be reset on 1 January each year. Qantas Points earned by all Card Members on a Card Account contribute to the 500,000 points threshold each calendar year. Bonus points earned from Acquisition bonus offers and marketing campaigns are excluded from the threshold.

3.3. For the American Express Velocity Business Card:
Velocity Points are earned in accordance with and subject to the American Express Velocity Cards Points Terms and Conditions, and exclusions apply. Eligible purchases do not include Card fees and charges, for example annual fees, interest, late payment, cash advances, balance transfers, traveller’s cheques and foreign currency conversion. These do not earn Velocity Points. For the full list of exclusions, please refer to the American Express Velocity Card Points Terms and Conditions available here.

The earn rate of 2 Velocity Points per $1 spent on Virgin Australia only applies to purchases made in Australia. You will earn up to 0.5 Velocity Points per $1 spent at participating Merchants classified as “government” including the Australian Taxation Office, the Australian Postal Corporation, Federal/State and Local government bodies. Industry specific earn rate may apply when you use a payment Account, payment aggregator, services of a third party or online retailers that sell goods for another merchant. For example, a payment made to Local Government bodies processed through payment aggregator may earn rates at the government earn rate. There may be tax implications associated with participation in the Rewards program. You are advised to check with your accountant or tax advisor for further information.

⁴ Subject to the Terms and Conditions of the Membership Rewards Program found here. There is no expiry on points as long as the Card Account is active, enrolled in Membership Rewards program and is kept in good standing and not overdue.

⁵ Subject to the Terms and Conditions of the Membership Rewards Program found here.

⁶ You can redeem points for prepaid travel of a nominated value through American Express Travel Online with the point-of-purchase redemption capability. Travel bookings using points may be made for any person, provided all your Accounts are kept in good standing and are not overdue. All travel bookings are subject to availability. Subject to the American Express Travel Online standard booking Terms and Conditions here: https://www.americanexpress.com/au/travel/terms-and-conditions/

⁷Airport Lounges. Includes the American Express Global Lounge Collection and Centurion Lounge Network. Also includes access to the Priority PassTM program, which is subject to enrolment and the Priority Pass Conditions of Use available at www.prioritypass.com. For more details on the Global Lounge Collection and the full terms and conditions, visit americanexpress.com.au/platinumlounges 

⁸ Enrolment required. Subject to the AccessLine Terms and Conditions found here.