Everyone wishes they could use their personal business credit card to pay for everything. The problem is, until recently, getting approved for a personal credit card has been difficult and expensive. Even if you have excellent credit, it can often take months or even years to get approved. But that all changes with the introduction of Business & Travel Credit Cards! These special cards are specifically designed to meet the needs of businesses who want to take advantage of the wide variety of rewards available but don’t want to dish out the cash for a personal credit card.
These business traveler credit cards are ideal for people who travel frequently and need to quickly and easily buy room, food, and travel expenses while on the road. Keep reading to discover everything you need to know about these high-quality cards!
What Is Travel Expense Reimbursement?
Travel expense reimbursement is a credit card feature that lets you reimburse your employees for travel expenses that are incurred while they are on business trips. The travel expenses reimbursed by the card holder are the ones that are fully documented and can be easily traced back to the cardholder’s name.
The travel expense reimbursement card also known as a travel rewards card is a special kind of credit card that allows you to easily and quickly reimburse employees for expenses that are incurred while on business trips. Typically, travel rewards cards have an annual fee and require you to sign a contract promising to cover the cost of travel expenses for employees.
How Does Travel Expense Reimbursement Work?
Travel expense reimbursement cards work like any other credit card, but with one important difference. When you make a purchase with the card, you’re not just adding to your own credit card debt; you’re also putting a cash value on the card for the employee who requested the reimbursement.
For example, let’s say one of your employees requested a travel credit of $500. The travel credit would be added to your credit card and then later charged to their account. This is known as a cash advance. If you didn’t pay that cash advance back until the end of the month, then your credit card company would subtract the $500 from your account and give you a cash refund. Travel expense reimbursement cards work exactly the same way: The employee wants to use the card to make a purchase, so you give them the cash value and they return it to you at the end of the month.
The Importance of Good Credit
The main reasons why travel credit cards are a great idea for small businesses are that they: Encourage good credit — Some credit cards charge a higher interest rate and impose stricter rules on opening a new account compared to others. By getting on the “good” side of the credit bureaus, you’ll show them that you have a history of good credit and can easily open a new account in the future. Boost your cash flow — By rewarding your employees for using their cards, you’ll encourage them to carry more cash on them at all times and use it to pay for their expenses. This will help increase your cash flow and help you stay in compliance with the law.
What Are the Different Types of Travel Expense Reimbursement Cards?
There are many different types of travel expense reimbursement cards, including: Travel Credit Card — The most common type of travel card and what this article is about. Credit Card with Travel Rebate — A special type of travel card that applies a 2% discount to all travel expenses. Travel Credit Card with Cash Back — A special type of travel card that applies cash back to all travel expenses.
The best travel expense cards for small businesses
The best travel expense cards for small businesses are the reward cards with the highest cash back rates. These cards will return the most value to the traveler and will also have the best credit score to help you get approved for future cards. There are many different types of travel credit cards with different offers and promotions. To help you choose the best one for your situation, consider the following:
Cash Back vs. Travel Credit Card — The main difference between cash back and travel credit cards is that cash back cards only give you back the amount you’ve put on the card, while travel credit cards also give you a cash rebate.
Fees & Charges — Some travel credit cards charge an annual fee, while others waive it for new customers. Many of the best travel credit cards come without an annual fee.
The benefits of having a travel credit card are endless. Not only do you get the ability to quickly and easily cover travel expenses, but you also get to test drive the card and make sure it fits your needs before you commit to a long-term plan.
If you’re going to use a travel credit card for business, it’s important to choose the right card for your needs. Look for a card with cash back rates and a good credit score. These are the things that will make the biggest difference in your situation and help make this card the best among its competitors.