Bank of America (BOA), a well-known player in the field of small business credit cards recently announced some changes to the program that will affect both existing and new members.

BOA’s products include the popular Bank of America® Business Advantage Cash Rewards Mastercard® credit card, which has no annual fee and has given companies flexible rewards for everyday business spending.  

What’s New

The card originally offered 3% cash back on fuel and office supplies, with a cap at $250,000 in total purchases between the two categories. Purchases after that earned 1%. Restaurants earned unlimited (no cap) 2% cash back, and 1% was rewarded for other purchases.

Now, cardholders get 3% cash back on the category they have chosen (for the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter), 2% cash back on dining, and 1% cash back on all other purchases. The $50,000 cap is significantly lower than the previous $250,000 cap but has a higher 3% earning tier that was not offered before.

The new 3% bonus categories are: travel, fuel, office supplies. computer services, business consulting services and telecommunications.

Like other card reward programs, getting credit for these bonus categories will depend on how the line item charge is labeled on the statement. So, the cardholders should  understand how that works when making their selection for one of the bonus categories.

BOA provides a customized online tool to help card holders decide what category will give the best value. If there is no category chosen when opening the account, the fuel category will be selected by default.

Changes in Bonus Offer

New applicants for the card will see the sign-on bonus change from $200 bonus when they spent $500 within the first 60 days to $300 statement credit when at least $3,000 in net purchases is made within 90 days of the account opening.

How It Affects Cardholders

Big spenders who consistently spend more than $250,000 in the select categories, may find the cash back rewards to be limited. It’s also a bit disappointing for businesses who wanted to spread their high-reward spending between office supplies and fuel; now, cardholders will have to pick one category.

Cardholders should do a thorough review of their spending in the last six months to see which structure best rewards their business spending.

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