If you are a new business owner you may be wondering if you can write off credit card payments as a business expense. The answer yes and no, you can write off any business expenses paid with your business credit card, but you cannot deduct your credit card payments themselves as business expenses, since they are actually just loan repayments. Remember that you always need to keep your receipts to justify your business expenses.

What you can deduct in addition to your other business expenses are card charges, including interest payments and fees. Since interest payments on business purchases or balances are a business expense, you can deduct them as business expenses at tax time.

How much interest you pay depends on your APR, but typically you will pay between 10% and 25% annually for your total card balances throughout the year (if you pay your balance off in full by the due date you will not have to pay any interest). If you carry large balances over the course of the year, interest payments can add up to several thousand dollars that you can write off as a business expense. Note that this deduction applies only to business credit cards, interest paid on personal credit cards is not a deductible expense.

Card processing fees are another deductible expense. Every time you accept payments by card from a customer, the payments processing networks (like Visa or MasterCard) charge you transaction fees, interchange fees, internet gateway fees, PIN debit transaction fees and so on. The bank that issued your card may also slap on additional fees. Together these are usually called merchant processing fees and can add up to close to 10% of the total transaction in the worst case. Fortunately you can write these processing fees off, which means huge tax savings for a card-based business.

The annual fee of a business credit card is another expense that you can usually write off, and this is something to consider when choosing a business credit card. ATM fees are also considered a deductible business expense, so if your business involves frequent use of your business credit card to withdraw cash from ATM's, for example while traveling, this write-off can save your business some money. Cash withdrawals at ATMs outside of your bank's network can cost you up to $10 per withdrawal, and even the $2 or $3 that your bank probably charges can add up to a lot throughout the year.

One more benefit worth mentioning is that when you make a business purchase using a credit card in a given year, you can write off the deductible business expense in the year you made the purchase, even if you only repay your balance over several years. As far as the IRS is concerned, the purchase is completed at the time you use your card to make the payment. Other benefits that some cards offer which can make the tax season more pleasant include detailed annual expense statements and downloadable categorized statements that integrate into popular accounting software.

Here are some of our best rated business credit cards.

Credit CardFeaturesIntro APRRegular APRAnnual FeeWhy we like itWe least likeCredit RequiredRelated links
American Express<sup>®</sup> Blue Business Cash Card

American Express® Blue Business Cash Card

APPLY NOWAt American Express' secure website
  • Earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
  • From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power§.
  • Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us and other factors.
  • 0.0% intro APR on purchases and balance transfers for 12 months, then a variable rate, 15.49%, 18.49%, or 21.49%, based on your creditworthiness and other factors as determined at the time of account opening.
  • No Annual Fee
  • Terms Apply
  • See Rates & Fees
APPLY NOWAt American Express' secure website

0% intro APR on purchases and balance transfers for 12 months

15.49% - 21.49% (Variable)

$0

Excellent Credit
The Hilton Honors American Express Business Card

The Hilton Honors American Express Business Card

  • Welcome Offer: Earn 125,000 Hilton Honors Bonus Points with the Hilton Honors American Express Business Card after you spend $3,000 in eligible purchases on the Card in the first 3 months of Card Membership.
  • Earn Hilton Honors Bonus Points for each dollar of eligible purchases on your Card: 12X at hotels and resorts in the Hilton portfolio, 6X on Select Business & Travel Purchases, 3X Everywhere Else. Terms & Limitations Apply.
  • Enjoy complimentary Gold Status with your Hilton Honors Business Card.
  • Earn a Weekend Night Reward from Hilton Honors after you spend $15,000 in purchases on your Card in a calendar year.
  • Earn another Weekend Night Reward from Hilton Honors after you spend an additional $45,000 in purchases on your Card in the same calendar year.
  • Relax with 10 free airport lounge visits each year once enrolled in complimentary Priority Pass™ Select membership, which offers access to over 1,000 lounges in over 120 countries.
  • Terms apply.
  • See Rates & Fees
Terms Apply

N/A

17.99% - 26.99% Variable

$95

Excellent, Good
Bank of America<sup>®</sup> Business Advantage Travel Rewards World Mastercard<sup>®</sup> credit card

Bank of America® Business Advantage Travel Rewards World Mastercard® credit card

APPLY NOWAt Bank of America's secure website
  • Earn 25,000 bonus points when you make at least $1,000 in net purchases within 60 days of your account opening which can be redeemed for a $250 statement credit towards travel purchases.
  • Earn unlimited 1.5 points for every $1 spent on all purchases everywhere, every time-no matter how much you spend. Points don't expire.
  • Earn 3 points per every dollar spent on travel purchases (car, hotel, airline) booked through the Bank of America® Travel Center - powered by Expedia®.
  • No annual fee and no international transaction fees.
  • 0% Introductory APR on purchases for your first 9 billing cycles.
  • Redeem points for travel with no blackout dates, cash back or gift cards.
  • Get 75% more points on the base earn of every purchase you make when you’re a Preferred Rewards for Business Platinum Honors tier member. That means you will earn 2.62 points for every $1 you spend and 4.12 points per every $1 you spend at the Bank of America® Travel Center.
APPLY NOWAt Bank of America's secure website

0% Introductory APR on purchases for your first 9 billing cycles.

13.49% - 23.49% Variable APR

No annual fee

Why we like it
  • No annual fee and no international transaction fees.
  • Earn 25,000 bonus points when you make at least $1,000 in net purchases within 60 days of your account opening which can be redeemed for a $250 statement credit towards travel purchases.
Excellent
Bank of America<sup>®</sup> Business Advantage Cash Rewards Mastercard<sup>®</sup> credit card

Bank of America® Business Advantage Cash Rewards Mastercard® credit card

APPLY NOWAt Bank of America's secure website
  • Get a $300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening – with no annual fee and cash rewards don't expire.
  • Earn 3% cash back in the category of your choice, 2% cash back on dining and unlimited 1% cash back on all other purchases.
  • You'll get 3% and 2% cash back on the first $50,000 in combined choice category/dining purchases each calendar year, 1% thereafter.
  • 0% Introductory APR on purchases for your first 9 billing cycles.
  • Redeem your cash rewards as a statement credit, check, or have cash deposited into a Bank of America® checking or savings account.
  • Get 75% more cash back on every purchase when you’re a Preferred Rewards for Business Platinum Honors tier member. That means you will earn 5.25% on your selected choice category, 3.5% on dining and unlimited 1.75% cash back on all other purchases.
APPLY NOWAt Bank of America's secure website

0% Introductory APR on purchases for your first 9 billing cycles

14.49% - 24.49% Variable APR

No annual fee

Excellent
Gold Delta SkyMiles<sup>®</sup> Business Credit Card from American Express

Gold Delta SkyMiles® Business Credit Card from American Express

APPLY NOWAt American Express' secure website
  • Make business travel more rewarding. Earn 30,000 bonus miles after you make $1,000 in purchases on your new Card in your first 3 months.
  • Additionally, earn a $50 statement credit after you make a Delta purchase with your new Card within your first 3 months.
  • Earn 2 Miles per dollar spent on eligible purchases made directly with Delta. Earn 1 mile on every eligible dollar spent on purchases.
  • Settle into your seat sooner with Priority Boarding and enjoy 20% savings on eligible in-flight purchases in the form of a statement credit when you use your American Express Delta Card.
  • Pay no foreign transaction fees when you spend overseas.
  • $0 introductory annual fee for the first year, then $95. Terms and limitations apply
  • See Rates & Fees
Terms Apply
APPLY NOWAt American Express' secure website

N/A

17.99% - 26.99% Variable

$0 introductory annual fee for the first year, then $95

Excellent Credit
Marriott Bonvoy Business™ American Express<sup>®</sup> Card

Marriott Bonvoy Business™ American Express® Card

APPLY NOWAt American Express' secure website
  • Earn 75,000 bonus Marriott Bonvoy points after you use your new Card to make $3,000 in purchases within the first 3 months.
  • 6x points at participating Marriott Bonvoy hotels.
  • 4x points at U.S. restaurants, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers and on U.S. purchases for shipping. 2x points on all other eligible purchases.
  • Receive 1 Free Night Award every year after your Card account anniversary. Plus, earn an additional Free Night Award after you spend $60K in purchases on your Card in a calendar year. Awards can be used for one night (redemption level at or under 35,000 Marriott Bonvoy points) at a participating hotel. Certain hotels have resort fees.
  • Enjoy complimentary Marriott Bonvoy Silver Elite status with your Card. Plus, earn Gold Elite status after making $35,000 in eligible purchases on your Card in a calendar year.
  • Terms apply.
  • See Rates & Fees
APPLY NOWAt American Express' secure website

N/A

17.99% - 26.99% Variable

$125

Excellent/Good
American Express<sup>®</sup> Business Gold Card

American Express® Business Gold Card

APPLY NOWAt American Express' secure website
  • Earn 35,000 Membership Rewards® points after you spend $5,000 on eligible purchases with the Business Gold Card within the first 3 months of Card Membership.*
  • More Rewards: Get 4X Membership Rewards® points on the 2 select categories where your business spent the most each month**
  • **4X points apply to the first $150,000 in combined purchases from these 2 categories each calendar year.*
  • Airline Bonus: Get 25% points back after you use points for all or part of an eligible flight booked with Amex Travel, up to 250,000 points back per calendar year.*
  • Exclusive Offers: Get up to 1 year free on subscriptions to both G Suite Basic for up to 3 users and ZipRecruiter Standard, a combined value up to $3,200.*
  • Pay Over Time Option: A flexible payment option to help manage cash flow on purchases of $100 or more.*
  • Expense Management Tools: Connect to Quickbooks, access SpendManager℠, receive a Year-End Summary, and more.*
  • *Terms Apply
  • See Rates & Fees
APPLY NOWAt American Express' secure website

N/A

16.49% - 24.49% Variable

$295

Excellent/Good
CitiBusiness<sup>®</sup> / AAdvantage<sup>®</sup> Platinum Select<sup>®</sup> World Mastercard<sup>®</sup>

CitiBusiness® / AAdvantage® Platinum Select® World Mastercard®

APPLY NOWAt Citi's secure website
  • Earn 60,000 American Airlines AAdvantage® bonus miles after making $3,000 in purchases in first 3 months of account opening*
  • Designed for businesses
  • Earn 60,000 American Airlines AAdvantage® bonus miles after making $3,000 in purchases in first 3 months of account opening*
  • First checked bag is free on domestic American Airlines itineraries to reduce travel costs and boost your bottom line*
  • 25% savings on American Airlines inflight Wi-Fi when you use your card*
  • Enjoy preferred boarding on American Airlines flights*
  • Earn 2 AAdvantage® miles per $1 spent on eligible American Airlines purchases
  • Earn 2 AAdvantage® miles per $1 spent on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations*
  • Earn 1 AAdvantage® mile per $1 spent on other purchases* - No Foreign Transaction Fees*
APPLY NOWAt Citi's secure website

N/A

17.99% - 25.99%* (Variable)

$99, waived for first 12 months*

Why we like it
  • Earn 60,000 American Airlines AAdvantage® bonus miles after making $3,000 in purchases in first 3 months of account opening*.
Excellent, Good
Delta Reserve for Business Credit Card

Delta Reserve for Business Credit Card

APPLY NOWAt American Express' secure website
  • Earn 40,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months.
  • Earn 15,000 Medallion® Qualification Miles (MQMs) and 15,000 bonus miles after you reach $30,000 in eligible purchases on your Card in the calendar year.
  • Earn 2 miles per dollar spent on eligible purchases made directly with Delta. Earn 1 mile on every eligible dollar spent on purchases.
  • Find room for your carry-on and settle into your seat sooner with Main Cabin 1 Priority Boarding.
  • Pay no foreign transaction fees when you spend overseas.
  • Enter Delta Sky Club® at no cost and bring up two guests for an exclusive rate of $29 per person per visit.
  • Terms and limitations apply
  • See Rates & Fees
Terms Apply
APPLY NOWAt American Express' secure website

N/A

17.99% - 26.99% Variable

$450

Excellent/Good
Platinum Delta SkyMiles<sup>®</sup> Business Credit Card from American Express

Platinum Delta SkyMiles® Business Credit Card from American Express

APPLY NOWAt American Express' secure website
  • Earn 5,000 Medallion® Qualification Miles (MQMs) and 35,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 3 months. Plus, earn a $100 statement credit after you make a Delta purchase with your new Card within your first 3 months.
  • Check your first bag for free and save up to $60 on a round trip Delta flight.
  • Settle into your seat sooner with Priority Boarding.
  • Enjoy 20% savings on eligible in-flight purchases in the form of a statement credit with the American Express Delta Card.
  • Earn 2 Miles per dollar spent on purchases made directly with Delta. Earn 1 mile on every eligible dollar spent on purchases. Miles don’t expire.
  • Terms and limitations apply
  • See Rates & Fees
Terms Apply
APPLY NOWAt American Express' secure website

N/A

17.99% - 26.99% Variable

$195

Excellent Credit
The Business Platinum<sup>®</sup> Card from American Express

The Business Platinum® Card from American Express

APPLY NOWAt American Express' secure website
  • Welcome Offer: Earn up to 75,000 Membership Rewards® points.
  • Earn 50,000 Membership Rewards® points after you spend $10,000 and an extra 25,000 points after you spend an additional $10,000 all on qualifying purchases within your first 3 months of Card Membership.
  • Get 5X Membership Rewards® points on flights and prepaid hotels on amextravel.com.
  • Get 50% more Membership Rewards® points. That's 1.5 points per dollar, on each eligible purchase of $5,000 or more. You can get up to 1 million additional points per year.
  • 35% Airline Bonus: Use Membership Rewards® Pay with Points for all or part of a flight with your selected qualifying airline, and you can get 35% of the points back, up to 500,000 bonus points per calendar year.
  • Enroll to get up to $200 in statement credits annually by getting up to $100 semi-annually for U.S. purchases with Dell. Terms apply.
  • Get one year of Platinum Global Access from WeWork. With this membership, you can access 300+ premium, inspiring workspaces in 75+ cities. To get this exclusive offer, enroll between 2/15/2019 and 12/31/2019.
  • Terms Apply
  • See Rates & Fees
Terms Apply
APPLY NOWAt American Express' secure website

N/A

N/A

$595

Excellent Credit
Costco Anywhere Visa<sup>®</sup> Business Card by Citi

Costco Anywhere Visa® Business Card by Citi

APPLY NOWAt Citi's secure website
  • Discover the only business credit card designed exclusively for Costco members
  • 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter
  • 3% cash back on restaurants and eligible travel purchases
  • 2% cash back on all other purchases from Costco and Costco.com
  • 1% cash back on all other purchases
  • No annual fee with your paid Costco membership*
  • Whether you’re traveling for business or pleasure, enjoy no foreign transaction fees on purchases*
  • Receive an annual credit card reward certificate, which is redeemable for cash or merchandise at U.S. Costco warehouses, including Puerto Rico
APPLY NOWAt Citi's secure website

N/A

17.49%* (Variable)

$0*

Why we like it
  • 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter.
  • 2% cash back on all other purchases from Costco and Costco.com.
We least like
  • Costco Cash Rewards not redeemed by December 31 of the year issued will also be forfeited.
Excellent
Alaska Airlines Visa<sup>®</sup> Business credit card

Alaska Airlines Visa® Business credit card

APPLY NOWAt Bank of America's secure website
  • 40,000 Bonus Miles + Alaska's Famous Companion Fare™ Offer: Get 40,000 bonus miles plus Alaska's Famous Companion Fare from $121 ($99 fare plus taxes and fees from just $22) with this offer. To qualify, make purchases of $2,000 or more within the first 90 days of opening your account.
  • Get Alaska's Famous Companion Fare™ from $121 ($99 plus taxes and fees from $22) every year! That’s right, EACH YEAR on your account anniversary get a companion fare from $121 ($99 plus taxes and fees from $22). Valid on all Alaska flights booked on alaskaair.com with no blackout dates.
  • Save with a free checked bag on Alaska flights for you and up to six other guests on the same reservation.
  • Earn 3 miles for every $1 spent directly on Alaska Airlines purchases and 1 mile for every $1 spent on all other purchases.
  • NEW! 50% off Alaska Lounge day passes and 20% back on inflight food, beverage and Wi-Fi purchases when you pay with your card.
  • Get exclusive access to discounted redemption levels when you redeem miles for hotel stays at over 400,000 properties using Alaska Airline Hotels.
  • Earn unlimited miles and travel with no blackout dates and no international transaction fees.
  • Enjoy many money saving benefits, 800+ destinations, more than a dozen global airline partners and a low annual fee of $50 for the company and $25 per card.
APPLY NOWAt Bank of America's secure website

N/A

17.24% - 25.24% Variable APR

$50 annual fee for the company and $25 per card

Excellent
The Blue Business℠ Plus Credit Card from American Express

The Blue Business℠ Plus Credit Card from American Express

APPLY NOWAt American Express' secure website
  • Get rewarded for business as usual. Earn 2X Membership Rewards® points on everyday business purchases such as office supplies or client dinners.
  • 2X applies to the first $50,000 in purchases per year, 1 point per dollar thereafter.
  • Enjoy the flexibility to put more purchases on the Card and earn rewards when you buy above your credit limit*.
  • You’ve got the power to use your Card beyond its credit limit* with Expanded Buying Power.
  • More buying power for your business means more opportunities to earn points. That’s everyday business with the Blue Business Plus Card.
  • *The amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to us, and other factors.
  • 0.0% intro APR on purchases and balance transfers for 12 months, then a variable rate, 15.49%, 18.49% or 21.49%, based on your creditworthiness and other factors as determined at the time of account opening.
  • Terms Apply
  • See Rates & Fees
Terms Apply
APPLY NOWAt American Express' secure website

0% on Purchases and Balance Transfers for 12 months

15.49% - 21.49% Variable

No annual fee

Excellent, Good
Bank of America<sup>®</sup> Platinum Visa<sup>®</sup>Business credit card

Bank of America® Platinum Visa®Business credit card

APPLY NOWAt Bank of America's secure website
  • Get a $300 statement credit when you make at least $3,000 in net purchases within 90 days of your account opening.
  • Save on interest with a competitive purchase APR.
  • No annual fee.
  • 0% Introductory APR on purchases for your first 7 billing cycles.
  • Employee cards at no additional cost to you and with credit limits you set.
APPLY NOWAt Bank of America's secure website

0% Introductory APR on purchases for your first 7 billing cycles

11.49% - 22.49% Variable APR

No annual fee

Excellent
Business Green Rewards Card from American Express

Business Green Rewards Card from American Express

APPLY NOWAt American Express' secure website
  • Earn 5,000 Membership Rewards® points after your first purchase on the Card
  • Earn double Membership Rewards® points for each dollar of eligible purchases made when you book on the American Express Travel website
  • Earn one Membership Rewards® point for each dollar you spend on eligible purchases
  • Choose rewards from over 500 leading brands in travel, gift cards, merchandise or entertainment
  • $0 introductory annual fee for the first year, then $95
  • Terms & Limitations Apply
  • See Rates & Fees
APPLY NOWAt American Express' secure website

N/A

N/A

$0 introductory annual fee for the first year, then $95

Excellent Credit
The Plum Card<sup>®</sup> from American Express

The Plum Card® from American Express

APPLY NOWAt American Express' secure website
  • Paying early pays off: Get a 1.5% discount when you pay early, with no cap on what you can earn back.
  • Take up to 60 days to pay with no interest, if you pay your minimum due.
  • Use the power of the Plum Card to buy big for your business.
  • No Foreign Transaction Fees.
  • Introductory annual fee of $0 for the first year, then $250
  • Terms & Restrictions Apply.
  • See Rates & Fees
Terms Apply
APPLY NOWAt American Express' secure website

N/A

N/A

Introductory annual fee of $0 for the first year, then $250

Why we like it
  • No Foreign Transaction Fees.
  • Paying early pays off: Get a 1.5% discount when you pay early, with no cap on what you can earn back.
  • Take up to 60 days to pay with no interest, if you pay your minimum due.
We least like
  • Annual fee after the first year.
Excellent Credit