A couple of week ago Royal Bank of Canada (RBC) launched two new credit cards; the new credit cards launched are two cash back MasterCards.
Last week I covered what the RBC Cash Back MasterCard had to offer, and today I am going through the RBC Business Cash Back MasterCard.
To start things off, I have prepared a table outlining the basic information that the RBC Business Cash Back MasterCard has to offer:
|RBC Business Cash Back MasterCard|
|Cash Back Rate||- Earn 2% Cash Back on all purchases for the first 3 months (account needs to be opened before Oct. 2012)
- Earn 1% cash back all purchases after initial 3 months
|Benefits||Get Cash Back credits when you need it; you can receive the full amount on your cash back credits whenever your balance reaches of $25, or let it accumulate all year and collect on your January statement|
As you can see, RBC’s new credit card is none other than a no fee cash back rewards credit card.
The cash back reward rate is good for what it is; a no fee cash back rewards MasterCard.
Now there a problem that I have with this credit card, but before I get into it, I want to go over what I like about it.
The fact this is a no fee MasterCard and you have cash back rewards as well, it does make this credit card look good. Although you are only able to earn a 2% cash back rate for the first 3 months of opening your account, it is still a good offer to have.
That being said, having earning 1% cash back on all your purchases is still a good offer.
You must be wondering, what could the problem be with this credit card?
The problem is that there is a cap on how much cash back you can earn each month. The cap is at $500; yes, that is not missing a 0, it is in fact $500.
Granted, if you are going strictly on the 1% cash back rate, you will have to spend $50,000 in order to reach that cap, but depending on your business, you can spend that much in a few months. Then what, you stop earning cash back rewards?
This credit card might be more ideal for small business owners, people who may have just started to run their own business and they want to earn some rewards without the added cost.
However, personally, I would not get this credit card if I owned an established business or if I knew my operating costs would reach the cash back cap in a few months.
Other than that, this credit card is still a good choice for anyone looking to earn cash back rewards without a fee.
What do you think of the RBC Business Cash Back MasterCard?