Discover it® Business Card review

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This offer is no longer available on our site: Discover it® Business Card.

The Discover it® Business Card is no longer available. For other options, check out our list of the best business credit cards.

Discover it® Business Card: Unlimited 1.5% cash back rewards that are matched after first year

This card has a solid cash back rate and a few other great perks — but watch out for the personal guarantee.

1.5% cash back and match

The Discover it® Business Card offers an unlimited 1.5% cash back on all purchases, plus an automatic match for new card members on the rewards earned after your first 12 consecutive billing periods. That effectively boosts your cash back rate to 3% after the first year. For small-business owners with plenty of startup costs, this could mean earning a load of cash.

Cash is already a pretty flexible reward, but there are still a few different ways to redeem: As a statement credit, a deposit to your bank account, a donation to select charities or as gift cards.

No annual fee

The $0 annual fee is a nice perk of this card. Aside from saving on this expense, you also won’t have to constantly do the math to make sure you’re spending enough to make up for an annual fee. One thing to keep in mind though: Other cash back business credit cards (some with annual fees) may offer a higher rewards rate than the 1.5% you’ll get with the Discover it® Business Card.

Free cards for employees

You can get free employee cards with customized spending limits. Plus, all rewards earned on their cards accrue to the primary cardholder’s account. This feature is good for any business where the employees will incur business expenses like client lunches, gasoline purchases or travel.

Build business credit

When you apply for the Discover it® Business Card, the issuer can check the business’s credit and the primary cardholder’s personal credit. As your business makes monthly payments, the card issuer can report your payment history to the three business credit bureaus, which can help you build business credit. Keep in mind that your personal credit can be affected too, since the primary cardholder’s account information can also be reported to the major consumer credit bureaus.

Personal guarantee

The Discover it® Business Card requires the primary cardholder be liable along with the business. By giving a personal guarantee, you agree to personally foot the credit card bill if the business can’t. This is pretty standard for a business credit card. But if your business defaults, the issuer could go after you for payment.

What else you need to know

A handful of extra features make “business as usual” easy for entrepreneurs.

Bookkeeping becomes easier when automated, and this card lets you download records of your purchases into Quicken, QuickBooks and Excel.
There’s an introductory purchase APR of 0% for 12 months from the date your account opens. After your 12 months are up, a variable purchase APR of 12.99% to 20.99% will apply.
Discover will let your first late payment slide, with no late fee. But after that, you’ll pay up to $41 for each late payment. But you won’t have to worry about paying a penalty APR.

Who this card is good for

The Discover it® Business Card is great if your small-business expenses don’t fit neatly into any one category. You’ll earn an unlimited 1.5% cash back rate on every purchase, rather than having to spend in specific bonus categories. And instead of getting a traditional sign-up bonus, which is pretty standard with business cards, the bonus essentially comes after a year — thanks to the Discover it® Business Card automatically matching all the cash back you earn after 12 consecutive billing periods, including any earned on employee cards. With cash-matching on this card taking your rewards-earning potential up to 3% for the first year, you’re looking at a rock-solid return compared to a lot of other cards, personal or business.

If you have startup costs that you need to finance over time, the intro 0% purchase APR for 12 months after account opening can help you afford these. But keep an eye on that end date and pay off the balance before the intro period ends, because after the intro period, the purchase APR jumps up.

About the author: Kim Porter is a writer and editor who has written for AARP the Magazine, Credit Karma, Reviewed.com, U.S. News & World Report, and more. Her favorite topics include maximizing credit card rewards and budgeting. Wh… Read more.