The Flagstar Visa Business Cash Card is a small business credit card with no annual fee and a cash back rewards program favoring common business purchases such as office supplies and cell phone communications. Such purchases earn unlimited 3% cash back. Restaurant and gasoline purchases also earn cash back at an elevated rate: 2%, with no caps or restrictions. All other purchases earn 1% cash back.
The Flagstar Visa Business Cash Card is great for small business owners who drive a lot, dine out with clients frequently, spend money on communications technologies, and patronize office supply stores. And, thanks to a 6-month, 0% APR purchase and balance transfer promotion, it’s also ideal for business owners seeking to pay down high-interest credit card debt or finance large upfront purchases.
However, this card isn’t perfect. Its sign-up bonus leaves something to be desired, and it lacks many of the generous consumer and traveler benefits that characterize competing business credit cards such as Chase Ink Business Preferred. Still, for business owners who can align their spending with its 2% and 3% cash back categories, it’s worth a look.
After you make your first purchase, you get a one-time bonus of 2,500 points. That’s equivalent to $25 cash.
Earning Cash Back Points
The Flagstar Visa Business Cash Credit Card earns unlimited 3% cash back on purchases at office supply stores. It also earns unlimited 3% cash back on purchases of certain communications services, including landline and cellular telephone, cable TV, and Internet. Gasoline and restaurant purchases earn unlimited 2% cash back. All other purchases earn unlimited 1% cash back.
Cash back is delivered via Rewards Points, which are always worth $0.01 apiece. Points expire 5 years (60 months) after they’re earned, so occasional users need to remember to redeem their points before they disappear.
Redeeming Cash Back Points
Points can be redeemed for statement credits against your credit card balance, cash back deposits into a checking or savings accounts (including Flagstar and third-party banks), gift cards at dozens of participating restaurants and retailers, general merchandise, travel, and more.
The most cost-effective redemption method is airfare: When you redeem 25,000 points through Flagstar’s travel portal, you can claim round trip airfare worth up to $325 – valuing points up to $0.014 apiece.
Regardless of how you redeem, using your points wisely can be a great way to save money on a tight budget.
The Flagstar Visa Business Cash Card has a 6-month, 0% APR introductory promotion on purchases and balance transfers. Neither type of transaction incurs interest during the promotional period.
Once the introductory period ends, this card’s purchase and balance transfer APR is set between 13.49 to 24.49%, your personal creditworthiness. As a variable rate, it’s subject to change over time.
The cash advance APR is set at 24.49% to start but is also variable. The penalty APR is set at 28.99%.
If these rates are too high for your liking, check out our best low-APR credit cards.
This card has no annual fee. Depending on how they’re executed, cash advances cost the greater of $5 or 3% to $20 or 4%. Balance transfers cost $5 or 3%, no matter what. Depending on how the transaction is denominated, the foreign transaction fee is 2% to 3%, with dollar-denominated purchases coming in at the lower rate. Returned payments cost up to $35. Late payments cost anywhere from $19 to $39, depending on size.
Overdraft Protection for Flagstar Bank Deposit Accountholders
If you have a Flagstar Bank checking account, you may qualify for the bank’s optional overdraft protection service.
When you opt into the service, transactions that would regularly cause negative balances in your account are offset by cash advances from your Flagstar Visa Business Cash credit card’s cash advance credit line. This allows them to go through as intended and ensures you meet your obligations to your payees.
Each overdraft protection transaction costs $10. Note that your card’s cash advance credit line is likely lower than its spending limit and that overdraft cash advances immediately begin accruing interest after they’re executed.
Business Features and Benefits
The Flagstar Visa Business Cash Card has a nice lineup of business-friendly features and benefits. The most noteworthy include:
- Reports that automatically separate business and personal expenditures
- Multiple ways to categorize spending (including by employee and purchase category)
- Complimentary online workshops on various business topics
- Up to $100,000 in protection against card misuse by terminated employees
Visa-Backed Cardholder Benefits
The Flagstar Visa Business Cash Card has some notable fringe benefits backed by Visa. The most popular include:
- Purchase protection for 90 days, subject to certain limitations and exclusions
- Complimentary extended warranties on items with existing warranties, subject to time limitations
- 24-hour travel assistance services such as lost card replacement and transportation assistance
This card is designed for business owners with good to excellent credit. Significant credit blemishes are likely to impact your application, as are serious issues like recent personal bankruptcy.
- No Annual Fee. Flagstar Visa Business Cash Card has no annual fee. That’s great news for frugal cardholders and light spenders who don’t earn rewards quickly enough to offset annual charges.
- Unlimited 3% Cash Back on Office Supply Store and Communications Purchases. It’s not quite free money, but this card’s unlimited 3% cash back rate on office supply store and communications purchases is attractive for business owners who spend in these two categories.
- Unlimited 2% Cash Back on Restaurant and Gasoline Purchases. The cash back benefits don’t stop there. This card’s 2% cash back tier offers unlimited rewards-earning power on dining-out and gasoline purchases. If you drive a lot or wine and dine clients frequently, this 2% tier alone could make the Flagstar Visa Business Cash Card worthwhile.
- Solid 0% APR Introductory Promotion. If you’re dealing with existing high-interest credit card balances or looking to finance big-ticket purchases for your business, this card’s 0% APR promotion is worth a closer look. It lasts 6 months, giving you plenty of time to pay down balances before they start earning interest.
- Affordable Overdraft Protection for Flagstar Customers. If you have a Flagstar deposit account, you may be eligible to take advantage of the Flagstar Visa Business Cash Card’s relatively affordable overdraft protection deal. When you trigger an overdraft protection transfer, your card account is charged just $10 – a small price to pay to ensure you honor your obligations to your clients and vendors.
- Mediocre Sign-up Bonus. The Flagstar Visa Business Cash Card has a so-so sign-up bonus worth just $25. While it’s nice that you only have to make a single purchase to earn it, it’s frustrating that it’s so paltry. Some competing cards, including the Chase Ink Business Cash Card and SimplyCash Plus Business Card from American Express, offer sign-up bonuses worth several hundred dollars.
- 2% to 3% Foreign Transaction Fee. This card’s foreign transaction fee is unavoidable. Depending on how the transactions are denominated, it adds either 2% or 3% to each transaction’s total. That’s enough to entirely offset this card’s rewards – a huge blow for frequent international business travelers. If you need a business credit card without foreign transaction fees, look to the Starwood Preferred Guest Business Credit Card from American Express or Capital One Spark Miles for Business.
- Points Expire After 5 Years. Cash back (rewards points) earned with this card expire after 5years. This is a potential problem for occasional users, who need to remember to redeem their points every once in a while or risk losing them altogether.
- 28.99% Penalty APR. This card charges penalty interest at 28.99% APR. If you occasionally miss statement due dates due to liquidity issues at your business and carry sizable balances from month to month, this can add hundreds of dollars to your annual credit card bill.
If you’ve never heard of Flagstar Bank, you’re not alone. It’s a Michigan-based regional bank with branches in a few Midwestern and Southern states, not a national behemoth like U.S. Bank or Wells Fargo. The only reason I’m familiar with Flagstar is because I lived in Michigan for a while and encountered its branches in my daily travels.
But, you don’t need to live in Flagstar’s trade area to qualify for a deposit account or credit card. Flagstar has a full lineup of business and consumer credit cards, from cash back and low APR products to travel rewards credit cards with juicy rewards programs, so it’s likely you’ll find an option that suits your needs.