Business

What is Cashback and How UK Businesses Can Benefit from it

Paola Faben Oliveira

13.02.23 (updated more than 1 year ago)

Read time 2 minutes

When choosing a UK business credit or debit card, it’s a good idea to look at all the features on offer - not just the interest rate and fees.

In some cases, card providers offer reward programmes, discounts and other perks. This can include cashback on spending. But how does this work, and could your business benefit?

Read on, as we’ll run through everything you need to know about business card cashback here in this guide.

What is cashback?

Cashback is where you get a percentage of the money you spend back. This could be in the form of money in your account, or in reward points or vouchers you can redeem.

The cashback rate is set by the card provider, and may only include certain eligible purchases. It’s usually part of a reward programme, designed to incentivise businesses to sign up for a particular credit or debit card.

💡 Read more: 0,5% cashback! Save money with Wise Business Cards

How does cashback work?

With a cashback card, you can spend as normal both online and in stores. For example, you can use your card to purchase office supplies or cover business travel expenses.

Every time you spend, you’ll earn a percentage of the amount back in cashback. It’s usually paid monthly or annually. So if you spend £500 on an eligible purchase and your card pays 0,5% cashback, you’ll earn £2,5 as a reward.

Can you get cashback on a business card?

Yes, but there are a few different types of business cashback cards. Some have tiered rates of cashback based on how much you spend, while others give you vouchers or coupons instead of cash.

Rates of cashback vary, and you may only be able to earn it on certain spending categories. For example, energy or utilities, office supplies, or travel.

If used on purchases you’d normally make anyway, business cashback cards are a good way to save your company money.

For example, if you usually spend £5,000 a month on travel across the business, you could earn 0,5% cashback with the Wise card. This earns you £25 a month in cashback, which means your travel expenses are £25 cheaper.

Multiply this across several spending categories and numerous employees, and you could be making decent savings.

Credit card cashback

Here’s a quick look at the main UK business credit cards with cashback¹:

Barclaycard Select Cashback Business Credit Card

Barclaycard Payments Select Business Credit Card

Juni Business Card (ecommerce businesses only)

Payhawk Corporate Visa Card

NatWest Business Plus Credit Card

Santander Business Cashback Credit Card Mastercard

Royal Bank of Scotland Business Plus Credit Card.

💡 Read more: 4 best cashback business credit cards in the UK - and one debit card alternative

Cashback on debit card

Now, let’s run through your options for UK business accounts which offer cashback on debit card spending:

Virgin Money M Account for Business

Virgin Money Business Current Account

Tide Business Cashback Account

Cashplus Business Extra Account

Wise Business Multi-Currency Account.

what-is-cashback

Wise Business Card

With the Wise Business Card, you could save on expenses and spending all over the world. Your card is not only linked to a powerful multi-currency business account, but it also offers 0,5% cashback on spending (some exclusions apply).

There are no monthly or annual fees to pay, or foreign transaction fees. Best of all, you’ll get the mid-market exchange rate on all currency conversions. This means you can spend worldwide and always know you’re getting the best deal.

Open a Wise Business multi-currency account and you can get an employee expense card for every person who needs one. There’s a one-time fee of just £3 per card, but each employee can start earning 0,5% cashback on spending right away.

What’s more, you can stay in control by setting spending limits and tracking purchases.

Learn more about Wise Business

And that’s it - everything you need to know about UK business cashback cards. They could save your business money, but only if used on purchases you’d make anyway.

And in the case of cashback credit cards, make sure you pay off your balance in full each month. Otherwise, the interest could outweigh the rewards.

Sources used:

Finder - Business Credit Cards

Sources last checked on date: 09-Feb-2023

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.