One of the major challenge for most small business owners is drawing the line between their personal and business-related expenses. So, to avoid getting their credit cards mixed up with their other expenses, most business owners use different credit cards. Discover credit card is a common example.
Small business cards are also a practical option for business owners who struggle to keep track of their spending. This is also beneficial to provide separate allocation that your employees can manage.
If you’re considering having one for your business, the Discover Credit Card is one of the most reputable card issuers on the market. You may compare Discover to other well-known credit card companies including Visa, American Express, and Mastercard.
Discover card was a brand product created by Discover Financial in the 1980s that became popular for its exclusive offers. The Discover card was known for its cash-back incentives and other benefits that were uncommon at the time. Despite the fact that the credit card brand did not take off until the middle of the year 2000, they are now one of the largest credit card providers. In fact, as of 2020, Discover had 57 million cardholders worldwide, making it the fourth-largest card provider.
How Does Discover Card Differ from Other Credit Card Providers?
Most Discover Card competitors, such as Visa and Mastercard, issue their cards through banks to which they are linked. They only grant these banks a license to use their brand and release branded cards to their customers. Discover Card has its Discover Bank, through which they directly issue their branded credit cards.
Because Discover Card processes all transactions directly, without the involvement of a third party, their profit is returned to the company. As a result of Discover Financials’ business model, they have some pretty good offers for their customers, such as cash-back rewards. Furthermore, because Discover has a bank, they not only provide credit cards but also other bank services that can help you with your finances.
What are the Perks of Choosing Discover Card?
There are plenty of perks that you can get when you choose a Discover card. They offer eight basic credit card varieties that will be beneficial for business owners, students, and other sectors of individuals.
- The first is their signature card. Discover’s Cash Back card is one of the reasons why the company is so popular. Who wouldn’t want some of their money back when they use their credit card, right? It’s similar to receiving a discount, which most people appreciate.
If you have a Discover Cash Back Card, you can enjoy their exciting cash backs without having to worry about them expiring. When you use this card to purchase at one of their partner stores, you can earn rewards. You can find all of the Cash Back information here.
- One of the best aspects of Discover is that it offers credit cards that are ideal for students. Student Cash Back cards, which provide a $20 statement credit if you achieve the required average grade. Furthermore, they provide cashback when you use their student cards to make purchases at your favorite restaurants or fill up your gas tank.
- They also have cash-back cards, such as the Discover Travels Cash Back card, which is ideal for those who enjoy traveling. Get as much money back as you can when you pay for your travel expenses.
- Discover also offers Business cashback cards which offer the perfect benefits for your building your business. They offer 1.5 % of unlimited cash back for every purchase you make using the card, which can be very beneficial for business owners.
All in all, you don’t have to worry about the annual fee as they are sticking with their promise of not having that yearly fee. You can enjoy those cashback cards as much as you want.
Benefits of Discover Cards to small business Owners
As previously stated, most business owners choose to use business cards to help separate and manage expenses. Small Business credit cards are already useful, but Discover has added new features that business owners should take advantage of.
Aside from the 1.5 % unlimited cash backs that you can enjoy, Discover Business Credit Cards offers more perks that you can use to build and grow your business successfully.
Free Employee Cards
It is difficult to keep track of the purchases that your company’s employees make if you have a large number of employees who you trust to handle financial expenses for your company. However, when you apply for a Discover Business card, you will receive 50 free employee cards to distribute to them. It will make financial management in your company much easier.
Furthermore, you can keep track of all of these employee cards and their purchases, as well as customize the spending limit. All of these employee cards will also provide cashback rewards, making them more beneficial to both your company and your employees.
Manage Transactions Easily
You can easily manage all the transactions that you and your employee made by downloading them on Excel, Quicken, and even on QuickBooks. It’s a very efficient way to make every transaction transparent and accessible.
Discover Business Credit Cards are not only efficient and convenient, but they also save time because you can manage your transactions through their mobile app. Carry it with you wherever you go and manage it whenever you want.
Other useful benefits
- Discover It Cards offers a very appealing deal for new members in which they receive a 100% cashback match for the first year. Discover will match all of your rewards at the end of your first year of using the cards.
- Using Discover cards for your business will save you a lot of money because they have lower fees. Although most Discover Cards have associated fees, they offer a great deal in terms of fees. Aside from not charging an annual fee, they don’t have a charge for over-limit and foreign transactions.
- They also have excellent 24-hour customer service to handle all your inquiries and troubles.
- Your cards are also safe and protected from fraud as they have this freeze feature where you can immediately freeze your account with just a single tap. Using their mobile application, you can cancel any unaware purchases made using your card anytime.
How to Apply for Business Credit Card
Before you can apply for Discover’s Business Cards, you have to own your business for at least one year. They also require that your hundred percent own that business and you have been running it responsibly.
Other than that, you also have to provide all the requirements to proceed with your application.
Here’s a list of the requirements that you need in applying for Discover’s Business Cards:
You will have to provide the legal name of your business which means that your business should be legally registered.
- They also require you to provide your company structure.
- There is also a need for you to identify which industry suits your business which you should know if you’re business is registered.
- The annual revenue of your business or company is also needed before you can acquire a business credit card. Mostly, they have to check your revenue to assure that you are capable of paying.
- They also need the total personal income that you get annually for a valid reason of making sure that they are serving a payable customer.
Disadvantages of Using a Discover Credit Card
As much as there are plenty of advantages that you can get from Discover Credit cards, there are also drawbacks that you should be aware of.
- With regards to the cash backs that you can receive, there is a limit for the five percent cashback. You can only use this cashback for the first one thousand five hundred dollars purchase. Then, once you reach the limit, you’ll just receive the 1% cashback.
- Discover sometimes has complicated bonus categories in signing up for rewards. So, it is essential that you keep on track for the rotating categories that they have every 3 months.
- Unlike other credit cards provider, you might encounter some problems when using your discover cards at smaller businesses. Discover cards might be widely popular but there are still other shops that don’t recognize Discover Credit Cards.
- Since we’re still talking about credit cards, you need to be aware that there will always be interests and fees that could climb up when you don’t manage your cards wisely.
- You might also encounter a bit high transfer fees that usually goes up to five percent. This could be a headache, especially if you always make a large number of transactions.
Discover Credit Cards can provide you with a variety of benefits that you won’t find with other credit card companies, but as with any other credit card, it requires proper management. However, in terms of cashback and convenience for all cardholders, it may be one of the best credit card providers available on the market.
Discover cards also capture various cardholders because they have specific cards that could cater to the needs various consumers. They target almost all the sectors of individuals in society. Starting from students, working sectors, and business sectors.