In business, financial decisions are often the easiest. There are no shades of grey - if you can clearly quantify the costs and benefits it becomes a straight subtraction problem.
That's exactly what the ANZ Business One Cash Rewards offers: a rewards program that allows you to pre-calculate the financial outcome. The beauty of a cash rewards program is that it offers cash back in the form of a straight percentage of your monthly expenditure (in the case of the Business One Cash Rewards, 0.5%).
The calculation is as follows: To cover the $190 annual fee (which includes the $130 annual fee and the $60 Rewards Program Services Fee, assuming you only have one card), you'd need to spend $38,000 annually (about $730 per week). If you have additional cards, the total spend required reduces because each additional card costs only $80 (the $20 additional card fee and the $60 rewards fee).
That's it. If you're confident you'll spend more than $730 per week on a card, it's worthwhile (if you spend more than that, you might even be making money). If you don't, then it's not the right card for you. Simple.
Granted, we've made some assumptions here. The first is that you'll pay your credit card statement in full each month. Unlike the
ANZ Business One Rewards, the Cash Rewards comes with a 40 day interest free period on purchases, which is a bit longer than standard 30 day terms on most accounts payable.
If you're not likely to pay your account in full each month, you'll need to factor in the costs of interest which accrues at a rate of 18.25% (quite a bit higher than on the Business One Rewards).
Like the Business One Rewards, the $60 Rewards Program Fee per card, over-and-above the $20 additional card fee makes this a fairly unattractive option if you require multiple cards. If you do decide to get more than one, ANZ allows you to specify a credit limit on each card, which might be useful to limit your risk.
The card also comes with Company Liability Insurance, which protects your business against fraudulent misuse of cards for up to $37,500 per cardholder, and $200,000 per annum across all cards.
There is also the transit accident cover, usually a feature seen on travel credit cards, which covers the cardholder (and their spouse and dependent children) against injury or death while on a journey.
Like the Business One Rewards, the Cash Rewards comes with emergency worldwide card replacement and the Design Your Card feature, which allows you to upload an image during your application to be the background on your cards. It's easy to imagine how professional it would look to have your business logo on your credit card.
Overall: this is one of the few cards where you can make an objective financial judgement. If your planned expenditure is sufficient for the cash rewards to offset the expense of the annual fee (and any potential interest you may accrue), this is the card for you. If not, consider the other cards in the ANZ Business One range: Rewards, Interest Free Period and Low Rate.
