The Bank of America Cash Rewards Business Credit Card allows cardholders to select one category that earns 3% cash back, while dining earns 2% and all other purchases earn 1%. It carries no annual fee and is issued by Bank of America on the Visa Business network.
The card is designed for small businesses with predictable spending in one dominant category rather than uniform spending across all purchases.
What the product is structurally
The Cash Rewards Business Card is a revolving credit card. It earns cash back across three tiers: a 3% rate in one cardholder-selected category, a 2% rate on dining purchases, and a 1% base rate on everything else.
The 3% category can be changed once per calendar month. Eligible categories include gas and EV charging stations, office supplies, travel, TV, telecom and wireless service, computer services, and business consulting or advertising.
A combined annual spending cap of $50,000 applies to the 3% and 2% tier purchases. After crossing that threshold during the calendar year, all purchases earn 1%.
How it works in practice
At the start of each month, the cardholder can log in and select or change the 3% category. If no change is made, the previous selection carries forward. The category change does not require contacting customer service — it is managed through the online banking portal.
Dining earns 2% automatically without any selection or enrollment. This rate applies to restaurant purchases and does not overlap with the 3% category selection.
Cash back is redeemable as a statement credit, direct deposit, or check. Preferred Rewards for Business members earn an increased rate in all tiers based on qualifying balance tiers, up to 75% more at Platinum Honors.
The welcome bonus is $300 after spending $3,000 in the first 90 days.
Fees and pricing mechanics
There is no annual fee. No foreign transaction fees are charged.
The $50,000 combined annual cap on the 3% and 2% tiers can affect businesses with significant spending in bonus categories. Once $50,000 in qualifying purchases is reached, all remaining spending in the calendar year earns 1%.
The variable APR applies to balances not paid in full.
Limits, eligibility, and availability
Eligibility requires a U.S. business and personal credit evaluation by Bank of America. The product is available to sole proprietors through larger entities.
Employee cards are available at no additional cost and pool rewards into the primary account.
Tradeoffs, risks, or limitations
The $50,000 annual cap on elevated earning is low for businesses with heavy spending. A business spending $10,000 per month — $120,000 annually — in bonus categories would earn 3% on only 42% of that spending, with 58% falling into the 1% tier.
The category selection requires active management. Businesses that do not remember to update their selection will continue earning at whatever category was previously chosen, which may not align with current spending patterns.
The 3% rate is competitive for a no-annual-fee card, but it is limited to one category at a time. Businesses with significant spending across multiple high-return categories may perform better with a card that offers bonus rates across several categories simultaneously.
The Preferred Rewards multiplier, while potentially compelling, requires substantial banking relationships with Bank of America and Merrill to unlock meaningfully elevated rates.
See also: Bank of America Business Credit Cards Comparison, BofA Unlimited Cash Rewards Business Card Review
