Business owners may earn rewards on these overlooked expenses
Many vendors accept credit cards without surcharges, allowing business owners to earn points on purchases like beverage cartridges and plumbing supplies. However, a typical 3% processing fee can erase the value of rewards, so it's important to confirm terms first. Some premium business cards also offer bonus points on categories such as construction materials and hardware suppliers.
The article's author discovered that Coca-Cola flavor cartridges for his restaurant chain could be charged to a credit card with no surcharge, leading to substantial rewards accumulation across his ten locations. The key insight is that vendor payment policies vary widely, and simply asking directly can reveal fee-free card acceptance in unexpected categories like plumbing supplies, utility bills, and insurance premiums.
Premium cards such as The Business Platinum Card from American Express now offer bonus rewards on construction materials and hardware suppliers, covering purchases from major retailers like Home Depot and Lowe's as well as local parts suppliers. However, the typical 3% processing fee can negate rewards value, making it essential to verify terms before assuming a purchase qualifies for points.
This story could encourage more small business owners to scrutinize their payment practices and negotiate with vendors, potentially shifting more commercial spending onto rewards cards. If widely adopted, this behavior may pressure more vendors to absorb card processing fees or offer discounts for card payments, altering pricing dynamics across industries. Consumers could indirectly benefit if businesses pass along savings, though the primary impact would