Miles vs Cashback: Choosing the Best Option for Your Spending Needs

The Basics of Credit Card Rewards

Credit card rewards are essentially incentives issued by banks to encourage credit card users to use their cards. As a business owner, you will have plenty of expenses. You can reap substantial rewards if you put most of these on a credit card. However, strategic planning and spending are needed.

The most common rewards offered on credit cards are miles and cashback.

Miles Cards

Miles credit cards offer airline miles or points for every dollar you spend. Once you accumulate enough points, you can redeem them for travel perks such as hotel stays, airport lounge access, premium upgrades, flight tickets, etc.

Miles credit cards are especially helpful if your business involves frequent travel. Some miles credit cards also offer travel perks in the form of free concierge service, travel insurance, and hotel privileges.

Cashback Credit Cards

Cashback credit cards offer rewards in the form of giving back a portion of the money spent on your card. For instance, if your credit card offers 2% rewards, you will receive 2% of the money swiped on the card as cashback. This can be redeemed instantly or can be carried forward toward your card balance at the month's end.

Some cashback cards also offer redemption options in the form of gift cards or merchandise in exchange for cashback at different retailers.

Cashback cards are popular among business owners who prefer immediate savings on their credit card spending instead of accumulating miles for the future.

Miles vs Cashback Cards

Earning Rewards with Credit Cards

Businesses can maximise rewards by aligning their credit card spend with cards that offer the best cashback or miles for eligible transactions. To maximise credit card rewards, you shouldn't only concentrate on swiping your card and spending smartly.

You must understand the following while choosing a business credit card to do this.

Cashback Credit Card Benefits

Here are some benefits of using cashback credit cards:

• It is quite easy to calculate the value of cashback rewards since most cards have a fixed rate of spending.
• The cashback rewards usually apply to most categories of purchases and, therefore, offer more flexibility than miles cards.
• Most cashback credit cards don't have an annual maintenance fee.
• Another benefit of using cashback cards is that the rewards are easier to redeem and directly credited, unlike points and miles, which later need to be converted.

When comparing cashback cards, it is important to assess whether the card offers an acceptable cashback yield relative to your business's spending patterns.

Miles Credit Card Benefits

Here are the benefits of using travel credit cards for points and miles:

• When compared to cashback credit cards, travel cards usually have a higher reward structure for all travel-related expenses.
• Travel credit cards also offer additional travel perks that frequent travellers will enjoy, such as travel insurance, access to airport lounges, and priority boarding.

If your business involves frequent travel for regional client meetings or overseas sourcing trips, a miles credit card can turn your everyday spending into serious travel rewards. Here's how it benefits you:

Free Flights (Eventually)

You earn miles every time you charge a business expense for flights, hotels, meals, or office purchases. Over time, these miles can be redeemed for free or discounted flights, upgrades, or even hotel stays. These perks can add up faster than you think for businesses with consistent spending.

Better Travel Perks

Many miles cards in Singapore come with built-in travel privileges that save you time and money, like:

• Complimentary airport lounge access (great for regional flights)
• Priority check-in or boarding
• Travel insurance coverage for you and your team
• Bonus miles when you hit certain spending milestones

These perks make business travel more comfortable and efficient—especially if you fly often.

Reward High Business Spend

Unlike cashback cards with monthly caps, miles cards are typically uncapped. You can earn big without hitting a ceiling if your business has high recurring expenses.

Currency Conversion Advantage

If your business makes overseas purchases, some miles cards offer better earning rates on foreign currency transactions. Instead of just absorbing the FX fees, you'll earn more rewards while spending abroad.

Flexible Redemption Options

Miles can usually be redeemed not just with one airline but across multiple partners—giving you the freedom to choose flights and travel dates that suit your business schedule.

General Spending and Rewards

Opt for credit cards with general spending and rewards if you don't want to focus on category-based spending. Though their earning rates are lower when compared to miles or cashback cards, they offer flexibility in spending. Also, the rewards can be limited to certain purchases. Only eligible spend, such as dining, transport, or online shopping transactions, usually qualify for the highest cashback or miles earn rates.

Minimum Spends and Requirements

Many cashback and miles cards require a minimum monthly spend to unlock higher rewards rates or bonus points. For instance, a credit card might offer cashback only after meeting a minimum monthly limit, or there could be a cap on the maximum cashback you can obtain. To ensure you make the most of your credit card, it's crucial to hit the required thresholds without overspending.

Rewards, Currencies, and Options

The redemption option and flexibility depend on your credit card type. For instance, cashback can be redeemed as statement credits, cash vouchers, or other discounts. On the other hand, miles and points can be redeemed on future travel-related expenses such as flight tickets, hotel stays, etc. So, it's essential to understand a credit card's reward options. While choosing, look for a credit card that offers your business the most benefit — travel comfort or cost reduction.

Unlimited Cashback Options

Some credit cards offer unlimited cashback, and they are ideal because:

• They don't have any minimum spending requirements
• Offer a fixed cashback on all purchases

Such credit cards are ideal for businesses with a broad spectrum of expenses or fluctuating expenses.

Specialised Spending and Rewards

Look for specialised spending credit cards if your business consistently spends on a specific niche. These cards offer higher rewards on specific purchases. However, the rewards might come with higher credit card fees and stricter usage guidelines.

Best Credit Cards for Each Spending Type

If you are wondering whether you should choose a cashback or miles credit card for your business, consider the following.

Type of Business Spending

Here are some popular spending categories and credit cards that will help maximise your rewards on the same.

• Airline credit cards are often co-branded with a specific airline and offer airline rewards and perks such as priority upgrades, free checked bags, airport lounge access, and priority boarding.
• Hotel credit cards are usually co-branded with a specific hotel chain or general travel cards offering hotel-specific perks and rewards such as priority upgrades, late check-in and check-out, free stay, on-property hotel credits, etc.
• General travel rewards cards aren't restricted to a specific airline or hotel chain and can be transferred to different travel reward programs.
• Flat-rate cashback credit cards offer a fixed rate of cashback on every purchase made using the said card.
• Tiered category cashback credit cards offer accelerated rewards or higher cashback for specific categories of spending.
• Rotating cashback credit cards offer accelerated cashback rates on popular spending categories that change on a monthly or quarterly basis.

Keep your business’s general spending in mind while choosing a corporate card to maximize the rewards.

Doing the Math on Rewards

When it comes to making the most of your credit card for business purchases, it is important to look at the earn rate. However, this is just the beginning. You must dig deeper to assess which type of card offers better benefits. For instance, one card might offer 1.5% cashback on purchases while another offers 1.2 miles per S$ spent. Here's how to evaluate the reward structure:

• Compare the annual fees with the benefits you can gain. For instance, a credit card charging an annual fee of S$200 might offer perks such as premium lounge access and hotel perks. If your business involves frequent travel, then the benefits offered will offset the annual charges.
• Similarly, it's important to evaluate the miles and points offered as rewards. Typically, a mile in Singapore might be worth around S$0.01 to S$0.02, depending on how you redeem them on flight bookings. For instance, if you book early, you might get the tickets at a better rate than during peak season.

The good news is that most banks offer reward calculators to simulate your monthly spending and understand the actual rewards you might gain from certain purchases.

Credit Card Rewards and Benefits

While choosing a credit card for your business, it's important to look at miles or cashback offered, but it's equally important to check other benefits they offer, too. Some common benefits to look for include:

• Airport lounge access for frequent travellers
• Free travel insurance covers medical emergencies, lost baggage, or flight delays.
• Additional purchase protection for high-value purchases, such as protection from theft, loss, or damage
• Extended payment terms and easy EMI options

Rewards Redemption and Options

Earning rewards is only one part of the equation. To truly maximize the benefits offered on a credit card for your business, you must know to redeem them strategically too. This is how you can generate value.

• For instance, miles accrued on a credit card can be redeemed through frequent flyer programmes through partnering airlines or the card issuer's portal. To maximise value, consider booking early, being flexible with your travel dates, and using the miles for seat upgrades.
• While using a cashback card, the cashback earned will usually show up on your monthly statement once you make the minimum spend. However, you might have to check with your issuer in case of manual redemption.

While considering the rewards and redemption options, keep in mind that some credit cards have time limits within which points or miles must be used before they expire.

Credit Card Fees and Considerations

While some premium rewards cards offer generous miles or cashback, the annual fee must be factored in to ensure the benefits outweigh the costs. This is because, as appealing as rewards are, the fees charged by a credit card can quickly eat into their value. Some standard charges to watch out for include:

• Annual fees
• Foreign transaction fees
• Late payment and interest charges
• Cash advance and over-limit fees

Before choosing a credit card account, carefully read through the fine print and compare the total cost versus the total rewards you can gain. For instance, if you opt for a credit card with high annual fees and barely use it, then you are losing money on it. Ultimately, the answer to choosing between a miles or cashback credit card for your business depends on your business's needs, requirements, and priorities.

Using Multiple Specialised Spending Cards Can Maximise Your Rewards

Multiple cards may be a good option but it requires planning. If you're willing to put in a little effort, you can stack up serious rewards using different cards for different spending categories. For example, one card could give you high miles for travel bookings, another might provide bonus cashback on utilities or fuel, and a third could reward your marketing spend.

The catch? You'll need to stay organised. Keeping track of which card to use, meeting minimum spending thresholds, and paying off balances in full each month requires discipline. But if you're up for it, this approach can stretch your business dollars further.

Automate Certain Spends And Set Limits to Stay in Control

For your business, credit cards can do more than just pay bills—they can help you streamline spending and control it too. One smart move is to automate regular or essential business expenses directly on your credit card.

Think software subscriptions, digital ads, cloud services, or even recurring supplier payments. Once set up, you won’t need to worry about missed payments or manual tracking every month.

Even better, many business credit cards in Singapore (and the tools that come with them) let you set spending limits either for specific categories or for individual employees.

This means you can issue supplementary cards to your team with custom monthly caps, so no one accidentally overspends on client dinners, travel, or office supplies.

This level of control helps you:

• Stay within budget
• Avoid surprise charges
• Delegate spending without losing visibility

Over time, this also builds a cleaner transaction trail, making bookkeeping and GST claims much simpler.

By automating the right spends and setting firm limits, you give your business the freedom to operate efficiently without losing financial discipline.

Watch Out for Credit Card Limitations

While this credit card game can be a smart way to invest in your business, it's essential to read the fine print—especially in Singapore, where many cards come with conditions to unlock the best rates.

Some cashback cards require you to hit a minimum monthly spend before you qualify for the higher cashback tier. If your business expenses fluctuate or you don't consistently meet that threshold, you might only get a lower base cashback rate, which can be underwhelming.

There might also be monthly cashback caps. For example, even if you spend S$3,000 monthly, the card might only give you cashback on the first S$1,000 in specific categories. You must plan your spending or consider splitting purchases across different cards to maximise rewards.

Before choosing a card, consider whether your business can consistently meet the required spending. If not, you might be better off with a card that offers flat, uncapped cashback or reliable rewards with fewer strings attached.

Automate Payments Towards Your Credit Card to Stay on Track

As a busy business owner, you’ve got a hundred things to juggle. One way to simplify your financial management is to automate your credit card payments.

By setting up auto-pay for recurring expenses—like subscriptions, utility bills, or even supplier payments—you reduce the risk of missing due dates, incurring late fees, or losing out on rewards.

Most Singapore banks and business credit card providers allow you to set auto-debit instructions, either for the full amount or the minimum payment.

Paying the full amount automatically each month ensures you avoid interest charges entirely, which is critical if you're using the card for regular operational spend.

Plus, automation makes your cash flow more predictable. You can track when major charges will hit and plan your working capital accordingly. Just be sure to regularly monitor your statements so no unexpected charges slip through.

Conclusion

Choosing the right credit card for your business depends not only on where and how you spend but also on what you value as a reward.

Cashback cards are ideal for businesses looking for quick returns on their daily spending, while points and miles cards are ideal for businesses that travel frequently and want rewards for their travel.

Strategically choosing the right credit card for your business is more than simply chasing rewards; it's about maximising returns. Whether you opt for a points and miles card or a cashback card, you can use it to turn business spending into tangible benefits.

If you are looking for further help, consider partnering with a seasoned platform such as Aspire to take care of all your business needs. With Aspire, you can obtain tailor-made business solutions to take your operations to the next level.