Choosing a business credit card involves different trade-offs than a personal card. Business spending patterns — travel, advertising, software subscriptions, office supplies — differ significantly from personal groceries and gas. Here’s a step-by-step framework for Canadian small business owners.
Step 1: Audit Your Business Spending
Before choosing a card, identify your top 3–5 spending categories over the last 12 months:
| Category | Typical Amount/Month | Relevant Card Feature |
|---|---|---|
| Air Canada flights | $2,000+ | Aeroplan business card |
| General travel (any airline) | $1,500+ | Avion, Amex MR |
| International purchases | Any amount | No-FX fee card |
| Advertising (Google/Facebook) | $1,000+ | Amex MR (flat 2x) |
| Office supplies / equipment | $500+ | Cards with office category bonus |
| Restaurants / client dining | $300+ | Amex Cobalt-style earn |
| General operating expenses | Any | Flat-rate cash back or MR |
Step 2: Choose Your Rewards Type
Aeroplan (recommended for Air Canada flyers) Best if your business regularly books Air Canada flights. Aeroplan points earn on the card and on flights — stacking toward free business class travel. Cards: Amex Aeroplan Business Reserve, TD Aeroplan Visa Business Infinite, CIBC Aeroplan Visa Business.
Amex Membership Rewards (recommended for high general spend) The most flexible currency — transfers to Aeroplan, Avios, and other programmes. Amex Business Gold earns 2 MR/$1 on everything, making it powerful for businesses with diverse spending. No single category needs to dominate.
Cash Back (recommended for simplicity) No programme to manage, no award charts, no transfer decisions. Earn a percentage back and get a statement credit. Best for business owners who don’t want to manage a loyalty programme.
Avion / TD Rewards / Scene+ (recommended for bank ecosystem) If your business banks with RBC, TD, or Scotiabank, their co-branded business cards integrate with your banking relationship — shared statements, credit under one institution.
Step 3: Calculate the Annual Fee Breakeven
Every premium business card charges an annual fee. Calculate whether your spending covers it:
Formula: Annual fee ÷ effective earn rate = minimum annual spend to break even
| Card | Annual Fee | Earn Rate | Breakeven Spend |
|---|---|---|---|
| Amex Business Gold | $199 | ~2 MR/$1 (value ~2¢) | ~$9,950 |
| TD Aeroplan Visa Business Infinite | $149 | ~1 Aeroplan/$1 | ~$14,900 |
| Scotiabank Passport Business | $199 | ~2 Scene+/$1 | ~$9,950 |
| No-fee business card | $0 | ~1%–1.5% | $0 |
If your annual business card spending is under $10,000, a no-fee card may outperform after accounting for the annual fee drag.
Step 4: Employee Card Requirements
Do employees need cards? Key questions:
- How many employee cards? Some issuers charge per additional card (e.g., $50/card/year); others include a set number free
- Do you need per-card spending limits? Most business cards allow you to set limits on employee supplementary cards
- Expense reporting? Large issuers (TD, RBC, Amex) provide year-end categorised summaries; some integrate with accounting software
Step 5: Consider Your Banking Relationship
Most Canadian banks require a business banking account to qualify for their business credit cards:
- TD business card → Requires TD business banking
- RBC business card → Requires RBC business banking
- Scotiabank business card → Requires Scotiabank business banking
Amex business cards do not require a banking relationship — you can hold an Amex Business Gold Card without banking with any specific institution.
Step 6: Verify Income / Revenue Requirements
Business cards may require:
- Proof of business (incorporation documents or CRA business number)
- Minimum annual revenue (varies by issuer)
- Personal income guarantee (standard in Canada — you’re personally liable)
Contact the issuer’s business banking line to confirm eligibility before applying. Some business cards are available to sole proprietors; others require incorporated businesses.
Common Mistakes When Choosing a Business Card
- Choosing based on welcome bonus alone — The ongoing earn rate matters more for long-term value
- Ignoring the FX fee — International businesses need a no-FX card
- Overlooking employee card costs — A $50/employee/year fee adds up quickly
- Not factoring in tax deductibility — Annual fees are often deductible as a business expense
- Mixing personal and business spend — Defeats the purpose of a business card
Related Articles
- Best Business Credit Cards in Canada
- Best No-Fee Business Credit Cards in Canada
- Best Business Travel Credit Cards in Canada
- Amex Membership Rewards — Business Use
- Business Credit Cards Hub
Business credit card approval requirements and terms vary by issuer. Annual fees may be tax-deductible — consult a Canadian tax professional. See our Advertiser Disclosure.