Comparing business credit cards for Kiwi businesses

Whether you’re a sole trader or CEO, a business credit card can help you better manage expenses and cash flow. Designed with businesses in mind, these convenient products entice customers with alluring rewards or low interest rates and fees.

A bounty of business cards is available in New Zealand, each appealing to different needs. We’ve compiled a comprehensive business credit card comparison guide to help understand the options that would best suit your need.

Table of contents
Benefits and drawbacks of a business credit card Top considerations when comparing business credit cards Comparing business credit cards in NZ The Wise Business Debit Card - An alternative FAQs

The benefits and drawbacks of a business credit card

Business credit cards entail many benefits.

• Separating business and personal expenses
• Instant line of credit to better manage cash flow
• No interest when paid in full each month
• Easily monitor spending and create expense reports
• Building a business credit rating to secure future loans
• Earning rewards to spend on travel or other purchases
• High-level security and fraud protections

The downside? A sky-high interest rate applies once the interest-free period expires. Fail to pay your card off in full by the due date, and you’ll get slugged with a hefty, perpetually accumulating fee–AKA, a debt trap.

Strict fiscal discipline is vital. Instant access to vast swathes of cash makes overspending tempting, especially for ambitious, growth-mindset entrepreneurs. If you’re unsure about your monthly repayment capacity, a business debit card might be a better fit.

Sign up for the Wise Business account! 🚀

Top considerations when comparing business credit cards

There are a plethora of things to consider when weighing up the options.

Eligibility criteria

To apply for a business credit card, you must be:

• 18 years of age or older
• A sole trader, partner of a partnership, or director of a company
• A New Zealand citizen or permanent resident

You must also meet credit card-specific lending criteria, like business registration documentation, credit ratings, and income/cash flow. If approved, the card issuer will assess your situation and offer an appropriate line of credit.

Interest-free periods

The interest-free period is the time you have to pay your balance without incurring interest. Typical interest-free periods range from 44–55 days. However, billing cycles often run monthly, meaning you may have to pay by the last day of the following month, regardless. Read the fine print; you don’t want to miss this deadline.

Longer interest-free periods may help businesses better manage cash flow.

Interest rates

Interest rates apply after the interest-free period expires if you haven’t paid off your balance in full. This rate is a percentage of the amount owing, typically in the range of 13% to 25% per annum (p.a.) for overdue credit card payments. That’s significantly higher than other loan types.

A business credit card with a lower interest rate lets you borrow money for less. Some companies find this loan useful to make strategic business investments.

Rewards

Some business credit cards offer rewards instead of low interest rates to attract big-spending clientele. Common examples include:

• Cashback: A percentage (usually 0.50% to 1.50%) of your total annual spend gets returned as cash each year
• Airpoints Dollars: Are redeemable for various Air New Zealand services
• True Rewards/Everyday Rewards: Can be spent on specific products and services

Fees

Almost all business credit cards have annual fees, typically ranging from $50 to $150. Some charge in six-month instalments, and others charge fees for each additional card.

Credit limits

One business credit card won’t necessarily have a higher limit than another. The provider typically sets a credit limit based on your financial situation and existing relationship.

Over-limit and late payment fees

Failed to pay your balance on time? Some business credit cards charge heftier late payment fees than others. Forgetful types should keep this in mind.

Over-limit fees apply when you spend more than your monthly line of credit. This fee varies by card and is typically a percentage of the over-limit expenditure.

Cash withdrawal fees

Cash withdrawal interest rates are often higher than purchase interest rates. It’s a crucial consideration if you plan to withdraw cash and may fail to pay it off by the end of the month.

Foreign transaction fees

Foreign transaction fees apply when purchasing from overseas vendors. Credit cards use their own exchange rates, which may have built-in markups.

Alternatives, such as the Wise Business Debit Card, offer a low international transfer fee and use the mid-market exchange rate for currency conversions to save you money when dealing with global payroll, suppliers, and other transactions.

Sign up for the Wise Business account! 🚀

Comparing the best business credit cards in New Zealand

Here are some top Kiwi business credit cards for companies with varying needs.

ANZ Visa Business Low Rate Card

Businesses with cash flow management woes might find the ANZ Visa Business Low Rate Card¹ a good fit. With a generous 55-day interest-free period, this option appeals to companies looking for longer repayment terms. A modest annual account fee sweetens the deal.

A relatively low interest rate of 13.90% on purchases softens the sting should you fail to pay in full at the end of the month. ANZ also offers business credit cards with rewards, but they come with a higher interest rate.

Fees	$35 per year Additional card $5 per year
Rewards or Points	None
Interest-free period	Up to 55 days on purchases
P.A. interest rate	Interest rate on purchases 13.90% p.a. Interest rate on cash advances 20.95% p.a.
Number of cards per account	Up to 15
Security	Complimentary Liability Waiver insurance

BNZ Business First Lite Visa

A low-interest alternative is the BNZ Business First Lite Visa², which has a slightly higher interest rate of 14.95% p.a. on purchases. However, it uses the same rate on cash advances, which is much lower than the aforementioned ANZ option.

Therefore, this card may appeal to businesses needing to borrow cash at a lower interest rate with a 55-day interest-free repayment term. Customers can access up to $50,000 when applying through the BNZ QuickBiz loan service.

Fees	$5 monthly card fee, per card Additional account fees may apply
Rewards or Points	None
Interest-free period	Up to 55 days on purchases and cash advances
P.A. interest rate	14.95% p.a. for purchases **and **cash advances
Number of cards per account	Unlimited (per-card fee applies)
Security	Users can set daily transaction and withdrawal limits
Line of credit	Up to $50,000

Westpac Airpoints Business Mastercard

As the name suggests, the Westpac Airpoints Business Mastercard is designed for frequent flyers.

In exchange for a higher account fee and interest rate, you earn Airpoints Dollars to spend on Air New Zealand flights, upgrades, and other travel-related goodies. Status Points can upgrade your membership tier with Air New Zealand and partner airlines, while the Koru program provides lounge access.

Business travellers who spend too much time in planes and airports might get good value out of this one.

Fees	$145 annual account fee (paid in two six-monthly instalments) $25 p.a. additional card fee 2.50% foreign currency fee
Rewards or Points	One Airpoints Dollar for every $85 spent on eligible business expenses One Status Point per $225 spent on eligible purchases Up to 35 days of international travel insurance 12-month Koru membership
Interest-free period	Up to 44 days
P.A. interest rate	20.95% p.a. for purchases, fees, and charges 5.95% p.a. balance transfer rate 22.95% p.a. cash advance rate
Number of cards per account	Up to 5 additional cards
Security	Up to 90-day purchase protection and extended warranty on purchases3

ASB Visa Business Rewards

If you’re more keen on rewards than travel perks, you may prefer the ASB Visa Business Rewards. Customers can redeem True Rewards⁴ at participating retailers, such as Mitre 10. Everyday Rewards work with Woolworths and BP, perfect for fueling up or doing a grocery run.

Fees	$35 account fee for up to 3 cardholders per six-month period $10 Additional card fee per six-month period
Rewards or Points	Earn True Rewards dollars or Everyday Rewards points with business purchases (excluding cash advances)
Interest-free period	Up to 50 days on purchases
P.A. interest rate	19.95% p.a. for purchases 22.95% p.a. for cash advances 0.00% p.a. for balance transfers
Cards per account	Up to 4 cardholders per account
Security features	Temporary card lock Spending limits Toggle on/off ATM cash withdrawals5

The Wise Business Debit Card - An alternative

A credit card isn’t the only way to separate personal and business expenses. Kiwi companies sending money overseas may benefit from the Wise Business Debit Card. While you won’t receive a line of credit, you could save money through low-cost international transfers using the mid-market exchange rate.

Simplify how your team manages international expenses. Wise Business debit cards offer a straightforward and efficient solution for spending and withdrawing funds across the globe.

• Provide your team with contactless international business debit cards for spending in 150+ countries
• Get the first Wise debit card for free with a Wise Business account
• Enjoy zero foreign transaction fees, no subscription fees, and free standard delivery
• Make 2 free monthly withdrawals of up to 350 NZD per account
• Experience currency conversion at the mid-market rate with transparent fees from 0.23%

Want a simpler way to handle your team's international expenses?

Sign up for the Wise Business account! 🚀

This general advice does not take into account your objectives, financial circumstances or needs and you should consider if it is appropriate for you.

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FAQs

What’s the difference between a business and a personal credit card?
Business credit cards typically have higher limits and business-oriented rewards. Customers may need to provide business registration details to apply.

What are the risks of a business credit card?
Failing to repay your monthly balance can result in a hefty interest rate and may negatively impact your credit rating.

Is a business debit card better than a business credit card?
It depends on your situation. A business debit card may be beneficial if you aren’t 100% sure you can meet your monthly repayments.

Sources:

1. ANZ: Visa Business Low Rate Card
2. BNZ: Compare Cards
3. Westpac: Airpoints Business MasterCard
4. True Rewards: Spend True Rewards
5. ASB: ASB Visa Business Rewards Credit Card