Discover does offer business credit cards, but the selection is smaller than you might expect
Discover offers two business credit cards: the Discover Business Card and the Discover Business Miles Card. Both are issued directly by Discover Bank, not through a partner, which means you deal with Discover for customer service, billing, and rewards redemption. Neither card charges an annual fee.
The main difference between them is the rewards structure. The Business Card earns cash back on specific categories and a flat rate on everything else. The Business Miles Card earns a fixed number of miles per dollar spent on all purchases. Which one makes sense depends on whether you want cash back or points you can transfer to airline partners.
Discover's business card lineup is noticeably narrower than what American Express, Chase, or Capital One offer. If you're comparing options across issuers, you'll find more cards with higher category bonuses, premium travel benefits, or specialized rewards elsewhere. But if Discover's rewards structure or customer service appeals to you, these two cards are legitimate options for business spending.
Key Takeaways
- Discover Business Card earns 1.5% cash back on most purchases, with higher rates in rotating categories, and has no annual fee.
- Discover Business Miles Card earns 1.5 miles per dollar on all purchases with no annual fee, and miles can be transferred to airline partners.
- Both cards report to business credit bureaus, which helps build your business credit history separate from your personal credit.
- Discover's business card selection is smaller than competitors like Chase or American Express, so compare rewards rates and benefits against cards from other issuers before deciding.
How the Discover Business Card rewards work
The Discover Business Card earns 1.5% cash back on all purchases with no category limits or rotating categories to track. This flat-rate structure is simpler than cards that require you to activate categories or remember which ones are active each quarter.
Cash back posts to your account monthly and never expires. You can redeem it as a statement credit, transfer it to a linked bank account, or request a check. There's no minimum redemption amount, so you can redeem $5 or $500 whenever you want.
The card also includes a 0% introductory APR period on purchases and balance transfers for the first six months (the exact terms may vary). After that, the standard APR applies based on your creditworthiness. There's no foreign transaction fee, which matters if your business makes purchases from international vendors.
How the Discover Business Miles Card works
The Discover Business Miles Card earns 1.5 miles per dollar on every purchase, with no bonus categories or spending caps. Like the cash back card, this simplicity means you don't have to track rotating categories or worry about hitting a cap.
Miles can be redeemed for travel through Discover's travel portal, where you book flights, hotels, and rental cars and redeem miles at a fixed rate. One mile is typically worth about 1 cent when redeemed this way. You can also transfer miles to airline partners including Southwest, United, and others, though the transfer value varies by airline and how many miles you transfer.
Miles don't expire as long as your account remains open and in good standing. The card also includes a 0% introductory APR on purchases and balance transfers for six months, and no foreign transaction fees.
Business credit reporting and how it affects your business profile
Both Discover business cards report to the three business credit bureaus: Equifax Business, Experian Business, and Dun & Bradstreet. This means your payment history and credit usage on the card build your business credit profile separately from your personal credit.
Building business credit takes time — typically 12 to 24 months of consistent on-time payments before you'll see a meaningful score. But once established, a strong business credit profile can help you get better terms on business loans, lines of credit, and vendor accounts in the future.
Discover does not require a Social Security Number to open a business card if you have an Employer Identification Number (EIN). This is useful if you want to keep your business finances completely separate from your personal credit profile.
Comparing Discover business cards to competitors
Chase offers the Chase Ink Business Cash and Chase Ink Business Preferred, both with higher category bonuses than Discover's flat rates. The Ink Business Cash earns up to 5% in rotating categories, while the Ink Business Preferred earns 3% on travel and internet, cable, and phone services. Both charge no annual fee.
American Express offers the Business Gold Card, which earns 4% on the first $5,000 in combined may be able to access purchases per month, then 1% after that. It charges a $295 annual fee, so it's only worth considering if your spending is high enough to offset the fee with rewards.
Capital One's Spark Cash earns 2% cash back on all purchases with no annual fee and no rotating categories. It's closer to Discover's flat-rate model but offers a higher rate.
If you spend heavily in specific categories like travel, internet, or office supplies, a card with higher category bonuses will earn you more than Discover's flat 1.5%. If you prefer simplicity and don't want to track categories, Discover's flat rate is competitive, though Capital One's 2% is slightly higher.
What Discover business cards don't include
Neither Discover business card offers premium travel benefits like travel insurance, rental car coverage, or trip cancellation protection. If travel benefits matter to your business, cards from American Express or Chase typically include more comprehensive coverage.
There's no sign-up bonus on either card. Many competitors offer cash back or miles bonuses for spending a certain amount in the first few months, which can be worth $200 to $500 depending on the card. If a sign-up bonus is important to your decision, you'll find more options elsewhere.
Discover also doesn't offer employee cards on these business cards, so you can't issue cards to staff members under your account. If you need to give multiple employees access to business spending, you'll need to look at cards from Chase, American Express, or Capital One, which all offer employee card programs.
Who these cards make sense for
The Discover Business Card works well for small business owners who want a straightforward rewards structure with no annual fee and don't want to track rotating categories. It's especially useful if you're just starting out and want to build business credit without paying for premium features you won't use.
The Discover Business Miles Card makes sense if you travel frequently for business and want to accumulate miles toward flights. The ability to transfer miles to airline partners gives you flexibility, though the redemption value varies by airline.
Both cards are worth considering if you already bank with Discover or prefer their customer service. Discover's business customer service is available by phone, and you can manage your account online or through their mobile app.
Frequently Asked Questions
Do I need an EIN to open a Discover business card?
No. You can open a Discover business card with just your Social Security Number if you're a sole proprietor. However, Discover also accepts applications from businesses with an EIN, which allows you to keep your business and personal credit completely separate.
Can I earn bonus cash back or miles on top of the base rate?
No. Both cards earn a flat rate with no bonus categories, promotional periods, or spending caps. The 1.5% cash back or 1.5 miles per dollar is what you earn on every purchase, every month.
What's the difference between redeeming miles through Discover's portal versus transferring to an airline?
Redeeming through Discover's travel portal locks in a fixed value of about 1 cent per mile. Transferring to an airline partner can be worth more or less depending on the airline and how you use the miles. Transfer rates vary, so check the specific airline's rates before transferring.
Does Discover offer a business card for startups with no business credit history?
Yes. Discover doesn't require an existing business credit history to open a card. They'll review your personal credit and business information, but you can start building business credit from day one with either card.
Can I switch between the Business Card and Business Miles Card later?
You can open both cards if you want, but Discover doesn't allow you to convert one card to the other. If you want to switch from cash back to miles or vice versa, you'd need to close one card and open the other, which would create a new account and a new hard inquiry on your credit.