What is cashback and what are corporate cashback cards?
Cashback is a rewards program that reimburses a fraction of the purchase amount back to the cardholder.
Corporate cashback cards are an array of debit and credit cards specifically designed for businesses and corporations, allowing them to reimburse a percentage of the money they spend on their business purchases. The cashback amount earned is typically credited to the account linked to the card using which the purchase is made.
How do corporate cashback cards work?
Corporate cashback cards work much like cashback on personal cards but with features and benefits tailored to businesses. Here's an overview of how corporate cashback cards typically work.
1. Application
The streamlined process behind the application of a corporate cashback card varies on the issuer chosen by the business/corporation. The primary requisite that stands common among all the issuers is the submission of documents, such as copies of business registration certificates and financial information, including income and assets. The card issuer assesses and approves or denies the application based on their respective evaluation criteria. If the corporation inclines toward a credit card, then its creditworthiness also serves as an element for the issuer to consider before the grant of a corporate cashback credit card.
2. Credit Limit & Debit Balance
Once the application for a credit card is approved, the credit card issuer assigns a credit limit to the corporate cashback card. This limit determines the maximum amount the business can borrow/spend using the card. It is based on the company's financial health, credit history, and the issuer's analysis of the business's ability to repay the borrowed amount. However, on the other hand, for a debit card application, the extent of fund accessibility depends on the financial balance available in the business account with which the card is associated.
3. Card issuance
The credit card provider issues physical/virtual cards to the business, which employees can use as needed. The business can request multiple cards for employee use, each with different spending limits, enabling better expense tracking, management, and control.
4. Purchases and payments
Businesses can use corporate cashback cards to make purchases for their operations, such as buying office supplies, paying for services, or covering travel expenses. Every transaction made using the card is recorded by the card issuer and the cashback is granted on qualifying purchases that come under the umbrella of benefits provided by the corporate cashback card.
5. Cashback rewards
Corporate cashback cards offer cashback rewards depending on the card's terms and conditions. The rewards typically comprise a percentage of the total purchase amount and can vary depending on spending categories. For instance, a card might offer 1% cashback on all purchases and higher cashback percentages for specific categories like travel or business equipment.
There can even be rotating cashback categories. Herein, these cards offer a higher percentage of cashback on certain categories of spending. These categories, however, often change at specified intervals.
6. Statement and reporting
The credit card issuer provides monthly statements to the business detailing all the transactions made with the corporate cashback card during the billing period. These statements allow the business to track and reconcile expenses, manage budgets, and spot unauthorised or fraudulent charges. Many issuers also offer digital portals or mobile applications for seeking real-time transaction information and reporting tools.
7. Cashback redemption
The cashback earned on these cards can be redeemed according to the card's rewards program. The redemption options may include the following:
- Direct deposits to the business's bank account: This is perhaps the most simplified mode of cashback redemption. Through this mode of redemption, your cashback is directly deposited to your business account within a few days and reflected in your balance.
- Statement credits: In this method of cashback redemption, instead of providing you rewards or money directly, card companies reverse the cashback amount (credit back to your account) from your spend amount. This means you do not have to pay that money (cashback amount) back to the card issuer.
- Applying cashback on future purchases: Hereby, the cashback amount/points you have gathered can be deducted from your future payment amount.
The redemption methods often vary depending on the card issuer and the specific rewards program associated with the card.
8. Payment and interest
The business is responsible for making payments on the corporate cashback card's outstanding balance by the due date specified in the monthly statement. Interest charges will typically apply to the remaining balance if the entire balance is not paid. Businesses should manage their cash flow effectively to avoid accumulating high-interest debt.
9. Additional benefits
Corporate cashback cards often come with benefits and perks specially designed for businesses. For instance, travel insurance, purchase protection, extended warranties, and dedicated customer support are usual benefits accompanying corporate cashback cards.
Also, cashback cards often require a minimum spending amount each month to be eligible for cashback rewards. It's essential to review the card's terms and conditions to understand if there are any such requirements.
Why should businesses opt for corporate cashback cards?
Businesses may opt for cashback cards for several reasons. Some key advantages and benefits of using them for business expenses are listed below.
1. Improved cash flow
Cashback earned on business spend can provide an additional source of cash flow for the company. By redeeming the cashback rewards or applying them as statement credits, businesses can effectively lower their overall expenses or allocate the savings made for future purchases. This way, cashback helps improve liquidity and provides flexibility in managing finances.
2. Significant cost savings
These cards allow businesses to earn a percentage of their spend back as cashback rewards. Companies can accumulate cashback over time by using the card for everyday business expenditures, like supplies, software services, travel, or client entertainment. This can result in colossal cost savings, especially for companies with substantial spending volumes regularly.
3. Spend tracking/reporting
Cashback cards are often supplemented with sophisticated expense tracking and reporting tools that simplify spend management and enable businesses to monitor and categorise spending easily. Detailed statements, access through digital platforms, and integration with accounting software can help streamline financial processes, enhance accuracy, and save time and effort when reconciling expenses.
4. Employee spend control
Corporate cashback cards often allow businesses to issue innumerable employee cards with individual spending caps. This feature helps exercise better hold and oversee employee spending. Businesses can monitor transactions in real-time and ensure that expenses comply with company policies, thereby preventing unauthorised or excessive spending and enhancing overall expense management.
5. Business-centric benefits
Cashback cards designed for businesses often offer extra benefits and perks tailored to their needs. These may include discounts on business services, travel-related benefits like airport lounge access or complimentary insurance coverage, and dedicated customer support for corporate cardholders. Such advantages can enhance the overall value proposition of the card and contribute to the company's operational efficiency.
6. Building credit score
Properly managed cashback credit cards can contribute to building the business's credit history and creditworthiness. Consistently making timely payments and utilising credit responsibly can establish a positive credit profile for the business and, consequently, gain improved access to financing options, better loan terms, and increased credibility with lenders and suppliers.
7. Streamlined reconciliation
The use of cashback cards simplifies the expenditure reconciling process. Detailed statements and transaction records given by the card issuer facilitate easy, accurate, and efficient expense tracking. The documentation can be particularly beneficial during tax season or when preparing financial reports, when businesses need a clear record of expenses to identify deductible items.
However, it's vital for businesses to carefully consider their specific needs, spending patterns, and financial goals before opting for cashback cards. Cost-benefit analysis and comparing different card options may be necessary to ensure the benefits outweigh the associated costs.
Types of Businesses That Can Benefit From Corporate Cashback Card
Cashback cards can save businesses money in Hong Kong. Here's how they can help:
- Retail & E-Commerce: These businesses can save on inventory, packaging, and ads, earning cashback with every purchase.
- F&B & Hospitality: Cashback helps offset costs like ingredients, delivery fees, and utilities.
- Startups & SMEs: Cashback cards allow startups and SMEs to make the most of their budget by earning rewards on software, office supplies, and subscriptions.
- Freelancers & Agencies: Creative businesses can cut costs on tools and ads while earning cashback.
- Consulting Services: Travel and dining expenses for client meetings can earn cashback.
For any business that spends on marketing, travel, or bulk purchases, a cashback card is essential. It’s a simple way to make everyday expenses work for them.
Best Cashback Cards Categories for Businesses
Corporate cashback cards often offer rewards in the following popular categories:
- Office Supplies: Cashback on purchases for office materials, equipment, and furniture.
- Travel: Rewards on business trips, including flights, hotels, and transportation.
- Marketing & Advertising: Cashback on digital ads, print materials, and promotional campaigns.
- Fuel & Transportation: Rewards on fuel, car rentals, and other travel-related expenses.
- Dining & Entertainment: Cashback on meals, client meetings, and business entertainment.
- Utilities: Cashback on payments for utilities like electricity, water, and internet.
How to Choose the Best Cashback Cards For Your Business
Selecting the right business card for cashback rewards can help business owners maximise savings and improve cash flow. By evaluating their spending patterns, desired perks, and card features, owners can identify the card that best suits their company’s needs. Here's a guide to making an informed decision:
Understand Business Spending Patterns
Business owners should start by analysing where their company spends the most. Cards offering boosted cashback rates in specific categories like travel, office supplies, or advertising may align well with their spending habits. Matching the card’s rewards structure to high-spend categories can significantly increase cashback earnings.
Bonus Categories vs. Flat-Rate Rewards
Businesses with concentrated spending in specific categories—like fuel, dining, or advertising—might benefit from a card with higher rewards in those areas. Alternatively, companies with more diversified expenses may find flat-rate cashback cards more suitable.
Compare Earning Rates
Cashback cards often come with different reward structures. Some offer flat-rate cashback across all purchases, while others provide tiered rates, rewarding higher spending in particular categories. Owners should choose a card that offers the best return on their most frequent expenses.
Evaluate Annual Fees
Many corporate cards charge annual fees, but the cost may be justified by higher cashback rates or additional perks. Owners should weigh the card's potential rewards against its fee and ensure the benefits outweigh the cost. For those with limited spending, a no-fee card with moderate rewards might be more practical.
Consider Sign-Up Bonuses
Many cards offer sign-up bonuses, such as extra cashback for meeting a specific spending threshold within the first few months. This can provide an early boost to rewards, particularly for businesses with predictable spending patterns. Owners should factor these bonuses into their decision-making process.
Review Redemption Options
Redemption flexibility is crucial. Some cards allow cashback to be applied directly to statements, while others offer gift cards, travel credits, or transfers to loyalty programs. Business owners should select a card that provides redemption methods that align with their cash flow needs and preferences.
Look for Additional Perks
Beyond cashback, some cards come with added benefits like travel insurance, purchase protection, extended warranties, or discounts with partner vendors. These extras can provide additional value and utility for a business.
Monitor Spending Limits and Caps
Certain cards impose limits or caps on cashback earnings, especially in high-reward categories. Owners should ensure their card can accommodate their business’s spending volume without hitting these caps too quickly.
Look for Relevant Cardholder Perks
Some credit cards offer valuable extras such as purchase protection, extended warranties, or employee expense management tools. These perks can enhance the card’s utility and provide peace of mind.
By considering these factors, business owners can select a credit card that not only offers strong cashback rewards but also aligns with their company’s unique financial needs and spending habits.
Here are some corporate cards that provide best cashback in Hong Kong
Some popular corporate cashback cards worth exploring in Hong Kong are mentioned below.
1. ICBC Visa Business Card
The ICBC Visa Business Card offers a cash rebate of 0.5% for every HKD 1 you spend at home and abroad at all merchants that accept Visa. This also applies to spending on food and travel as well as online purchases.
But how does the cash rebate work? It's simple: all your rebate amounts are automatically calculated and credited to your HKD account every month. This cash rebate program is suitable for you if you want to make real financial savings from using corporate cards.
2. HSBC Business Mastercard
The HSBC Business Mastercard is one of the most popular business credit cards in Hong Kong as it offers many benefits to its holders, including $1 RewardCash for every HKD 250 spent at selected merchants. You can redeem the accumulated RewardCash for a range of gifts and vouchers or convert it into air miles.
In addition to the RewardCash program, you can earn double rewards when shopping abroad and online at selected merchants. Transactions with this card are easy as you can integrate the card with your GooglePay, ApplePay and SamsungPay accounts.
3. Bank of East Asia (BEA) Corporate Card
BEA Corporate Card offers a 1% cash rebate on eligible expenses made with their corporate card. However, unlike other banks, BEA calculates your total cash rebates quarterly instead of monthly, as explained in the table below.
4. Dah Sing Business Card
The Dah Sing Business Card is a Mastercard credit card that offers a cash rebate of HKD 1 for every HKD 250 spent. Additionally, Dah Sing Bank provides a welcome offer of HKD 300 in cash rebates if you accumulate eligible spending of HKD 4,000 or more within the first two months of card issuance.
The rebates earned will be credited to your credit card account and can only be used to offset transaction amounts. They cannot be transferred or redeemed for cash.
5. Shanghai Commercial Bank Platinum Business Card
Shanghai Commercial Bank offers a Visa business credit card that also provides HKD 1 in cash rebates for every HKD 250 spent. Shanghai Commercial Bank offers two welcome gift options if you accumulate eligible spending of HKD 7,000 or more within the first two months of the new card issuance date.
- A travel suitcase, or
- Free spending credit of HKD 500
6. Aspire Corporate Card
Maximise your savings on everyday business expenses by utilising the Aspire Corporate Card for your payments. With this card, there is no annual fee; you have to shell out only a minimum transaction fee and can earn a cashback of up to 1% on various categories, including digital marketing, software subscriptions (SaaS), e-commerce, and business logistics.
Benefit from cashback rewards when dealing with the industry's leading names in business technology such as Google, Microsoft, Adobe, Meta, Slack etc. You also get HKD 500,000 worth of exclusive perks and rewards with Aspire partner merchants—one of the must-have corporate cards for startups.
How to Maximise Business Credit Card Cashback Rewards
Even if you own the best cashback card in Hong Kong, it won't deliver its full value unless you use it efficiently. Here’s a comprehensive guide to help you earn and maximise cashback rewards:
1. Choose the Right Business Credit Card
The first step is to select a card tailored to your business needs. Compare cashback rates, annual fees, spending limits, and bonus categories. Choose a card that aligns with your spending habits and offers the most value for your expenses. For instance:
- A card with higher cashback on office supplies and utilities is ideal for service-oriented businesses.
- Flat-rate cashback cards work best for diverse spending categories.
2. Charge Your Business Expenses
Maximise rewards by using your credit card for all eligible business purchases. If you have multiple cards, use the one offering the highest cashback for specific expenses. For example:
- Use a card with high cashback for travel bookings when arranging business trips.
- Switch to a flat-rate card for miscellaneous purchases outside bonus categories.
3. Track and Redeem Rewards
Check your rewards balance monthly, typically updated after your billing statement closes. This ensures you stay on top of earnings and plan redemptions effectively.
Some cards automatically apply cashback to your statement, while others require manual redemption. Explore all redemption options, such as gift cards or transferring cashback to travel or loyalty programs, to maximise flexibility and value.
4. Leverage Introductory and Bonus Offers
Many cards offer lucrative bonuses for meeting spending thresholds in the first few months. Plan larger purchases to qualify for these rewards.
Take advantage of higher cashback rates in specific categories, such as dining or office supplies. Adjust spending to align with these bonuses and maximise earnings.
5. Use Online Shopping Portals
Earn additional cashback by shopping through your card issuer’s online portals. These platforms often provide boosted rates at partnered retailers. Before making purchases, compare portal rates and ensure you’re earning the highest rewards possible.
6. Combine and Optimise Rewards
If your card allows, combine cashback with other rewards programs, such as travel points or hotel loyalty programs, for added value.
Stay aware of spending caps in high-reward categories to ensure you’re earning optimally without hitting limits.
7. Regularly Review Card Options
As your business grows, your spending patterns may change. Periodically evaluate your card’s benefits to ensure it remains the best fit. Consider upgrading or switching cards if another offers better rewards or more relevant perks.
How to Apply for a Cashback Corporate Card in Hong Kong
Applying for a cashback corporate card in Hong Kong is simple. Follow these steps:
1. Research and Compare
Find a card that fits your business needs by comparing cashback rates, annual fees, spending limits, and perks like travel insurance or purchase protection.
2. Check Eligibility
Ensure your business meets the bank’s criteria, such as:
- Minimum revenue or minimum duration of business activity
- Your business is registered in Hong Kong’s Companies Registry
3. Prepare Documents
Gather essentials like:
- Copies of Business Registration Certification in Hong Kong
- Proof of business location (such as a recent bank/credit statement or utility bill)
- Copies of HKID or passports of shareholders, directors, or business owners
- Financial statements or tax returns to demonstrate business income
- Business bank account statements
4. Submit Application
- Complete the form on the issuer’s website and upload the documents
- Apply at a bank branch in person for personalised guidance
5 Costly Mistakes to Avoid When Using a Business Credit Card for Cashback
Using a corporate card for cashback rewards can be a smart way to save money, but missteps can easily diminish its benefits even if you have the best cash rebate credit card or even debit card. Here’s a rundown of common pitfalls and how to steer clear of them:
1. Ignoring the Fine Print
Failing to read the terms and conditions of your credit card is a surefire way to lose out. Cashback benefits often come with restrictions, such as specific spending categories or minimum spend requirements. Familiarise yourself with these details to avoid missing opportunities to earn the maximum cashback.
2. Overspending for Rewards
It’s tempting to spend more just to rack up extra cashback. But remember: rewards are a perk, not the primary purpose of a credit card. Stick to your business budget to avoid unnecessary debt that outweighs the cashback earned.
3. Skipping Full Balance Payments
Carrying a balance on your card means high-interest charges that can cancel out your rewards. Always pay your balance in full each month to ensure you’re actually benefiting from the cashback program.
4. Forgetting to Track and Redeem Rewards
Many business owners lose cashback simply because they don’t monitor or redeem it in time. Some rewards expire if not used within a certain period. Set reminders to regularly check your account and redeem your cashback before it’s too late.
5. Using the Wrong Card for Purchases
Not all business credit cards reward all purchases equally. If your card offers higher cashback on specific categories like office supplies or fuel, make sure to use it for those purchases. Match your spending to the card’s cashback structure to maximise earnings.
Conclusion
Before committing to a cashback credit card program, consider whether you can benefit from it without significantly altering your spending patterns. Consider choosing a card where you're more likely to receive cashback without exceeding your budget. Otherwise, exploring other programs that align better with your company's spending patterns may be worthwhile.
By being aware of the rewards scheme, spending requirements, and any limitations associated with a cashback card, you can make an informed decision and choose a card that offers higher cashback rates and aligns with your business's spending habits.
Aspire corporate cashback cards provide attractive rewards on expenses related to online marketing and software as a service (SaaS) goods and services. By offering cashback on these specific categories, Aspire caters to the most essential business needs, enabling them to earn significant rewards on crucial business purchases.
Frequently Asked Questions About Corporate Cashback Cards
Who Can Apply for a Corporate Cashback Card?
Corporate cashback cards are available to registered businesses in Hong Kong, including small and large enterprises. To be eligible for a corporate card, applicants must be representatives of businesses registered with Hong Kong’s Companies Registry and must meet the minimum revenue requirements.
What Expenses Are Eligible for Cashback?
Eligible expenses usually include office supplies, travel, dining, telecommunications, and advertising. Some cards offer higher cashback rates for specific categories, so it's important to check the card's terms for maximum cashback opportunities.
How Can Cashback Be Redeemed?
Cashback can typically be redeemed as a statement credit or through the issuer's online portal. Some cards also allow cashback transfers to other rewards programs, like airline miles or hotel points. Ensure you understand any redemption rules or expiration dates.
Are There Additional Costs or Fees?
Corporate cashback cards may come with yearly fees, international transaction fees, and interest charges if the balance is not paid in full. Late payment penalties can also apply, so managing the card properly is essential to avoid these costs.
Are Virtual Cards Available?
Many issuers now offer virtual cards for online transactions. These cards provide added security and can be controlled through the issuer's platform, making them ideal for managing online purchases and subscriptions.
Frequently Asked Questions
