This blog is for educational purposes only, not an offer of credit or advertisement for current loan terms. It does not provide legal advice. Refer to our loan web pages or consult professional advisors for specific information.
A business credit card can be a powerful tool for your company, enabling you to make larger purchases and potentially offset some costs through rewards programs.
However, understanding the specific rules and restrictions of your card is crucial. This leads to the question: What exactly qualifies as a legitimate business expense for your credit card?
We’ll discuss what qualifies for your business’ credit card, how to use it, purchases to avoid, and how to boost your business with a MIDFLORIDA credit card.
Apply for your Business Credit Card with MIDFLORIDA Credit Union.
How can you use your business credit card?
You can use business credit cards, such as the MIDFLORIDA Credit Union Business Visa Platinum card, like a personal one. There are generally no limitations on what purchases you can make.
However, only some expenses qualify as actual business expenses. You should discuss the deductibility of expenses with your tax advisor.
What business credit card purchases are legitimate business expenses?
Everyday business expenses
Every business has some day-to-day expenses you’ll have to make to keep your business running.
A business credit card can make tracking these expenses more convenient . Plus, you can review your credit card statement to keep track of the purchases you made each month. Keep in mind, however, that IRS regulations may require additional documentation to prove deductible expenses. Check with your tax advisor for more information.
Business travel purchases
Business cards can help you cover costs when you need to travel, including:
- Lodging costs
- Flights
- Car rentals
- Fuel
- Ride shares or taxis
- Food
If you have a business credit card that offers travel rewards, you may even get access to discounts and perks like access to exclusive airport lounges.
Marketing and advertising
You might want to engage in marketing and advertising to grow your business. A business credit card can help you make these purchases, such as:
- Social media promotions
- Google Ads
- Brochures
- Business cards
- Professional design services
- Website hosting and URL fees
Shipping materials
A credit card can make buying shipping materials easier if your business relies on mailing products. It’s also a good way to buy postage if you have a postage meter.
What shouldn't you buy with a business credit card?
While business credit cards offer great flexibility and convenience, it's crucial to understand that not all purchases are ideally suited for them.
Certain types of expenses may be better handled through alternative payment methods.
Major purchases
If you plan to make a significant purchase, you might consider a MIDFLORIDA Business Equipment Loan instead of using your business card. You may be able to borrow more money and potentially qualify fora lower interest rate.
Personal expenses
Using your business credit card to make personal purchases can make bookkeeping significantly harder. It can result in confusing potential business expenses with personal expenses.
How to get the most out of a business credit card
Follow these recommendations to get the most out of your new business credit card.
Get a rewards credit card
At best, a rewards credit card can help offset your regular business expenses. Consider getting a business credit card that offers a percentage back on all purchases.
Familiarize yourself with the business credit card terms
The more you know about your business credit card’s interest rate and fees, the better you’ll be able to budget for them. Review your business credit card terms regularly, including the interest rate and annual fee.
Use the financial management features
If your business credit card has financial management tools, take advantage of them.
They’ll help you keep a close eye on your spending, not to mention the rewards you’ve earned.
Some features may even let you restrict where you can use your credit card, which can help ensure you only make business expenses.
MIDFLORIDA Business Credit Cards: Make Business Purchases with Ease
MIDFLORIDA Business Credit Cards provide the flexibility you need to manage your company's finances.
We offer Visa Signature and Visa Platinum options for businesses to enjoy the following perks:
- Competitive Rates: Benefit from low interest rates to minimize borrowing costs and maximize profits.
- Generous Credit Limits: Access flexible credit limits that increase as your business grows, allowing you to seize opportunities and cover large or recurring expenses.
- Minimal or No Annual 1: Reduce your overall costs with minimal or no annual fees associated with your card .
- Local Decisioning: Experience fast approvals and personalized service from a team that understands the unique needs of businesses in your community.
Apply for a business credit card at MIDFLORIDA
Understanding the appropriate use of your business credit card is essential.
While many purchases are eligible, it's crucial to prioritize business-related expenses such as operational costs, marketing initiatives, and travel expenditures. Personal expenses and large, infrequent purchases should generally be avoided.
To explore the benefits of a MIDFLORIDA business credit card, visit our website or a local branch to apply.
Also, if you’re a new member you can earn a $300 bonus2 by opening a Free Business Checking account and meeting the terms and conditions. This bonus can provide a valuable boost to your business's financial resources.
1. Visa Platinum has no annual fee. Visa Signature has an annual fee of $75.
2. Offer valid as of February 1, 2025, and may be canceled at any time without notice. Eligibility and membership requirements for business and business owner(s) apply. To qualify for the $300 incentive, the business must open a Business Checking account (Free Business Checking (minimum $100 to open), Premier Business Checking (minimum $500 to open) or Business Checking Plus Interest (minimum $500 to open); accept and open Online Banking, and eStatement; make deposits totaling at least $5,000 in a calendar month for two of the first six months of account opening; and complete five transactions (deposits, withdrawals, etc.) within the first 60 days. No dividends are paid on Free Business Checking and Premier Business Checking. Annual Percentage Yield for Free Business Checking and Premier Business Checking is 0.00%. Annual Percentage Yield for Business Checking Plus Interest is 4.00% for balances up to $10,000.00; 4.00% to 1.63% for balances of $10,000.01 to $25,000.00; 1.63% to 0.84% for balances of $25,000.01 to $50,000.00; 0.84% to 0.44% for balances of $50,000.01 to $100,000.00; and 0.44% to 0.05% for balances $100,000.01 and over. Rate may change after account is opened. Any business EIN that has previously received a business checking incentive will not qualify for the $300 incentive. The $300 will be deposited to the new Free Business Checking account after the qualifications have been met and will be reported to the IRS.
