Quick answer
A business credit card is a revolving credit limit for business spending, issued to a company or sole trader with an ABN. Paid in full each statement, it gives weeks of interest-free float on purchases plus expense tracking and rewards. Carry a balance and it becomes one of the dearer forms of business borrowing. Cards suit everyday purchases and short timing gaps, not funding large or long-term needs.
Key points
- Interest-free days only apply when the whole closing balance is paid by the due date
- Cash advances and balance transfers usually attract interest from day one
- Annual fees vary widely: as at October 2026, NAB's business cards range from $60 to $295 per card a year
- From 1 October 2026, surcharging on Visa, Mastercard and eftpos cards was removed, so your card costs are fixed by the issuer
- For balances you can't clear within a month or two, a line of credit or term loan is usually cheaper
- Typical limits
- $5k to $100k+, set by the issuer
- Interest-free period
- Up to about 35 to 55 days, depending on card
- Security
- Usually none; owner or director liable
- Best for
- Everyday spending paid in full monthly
Most business owners already carry a card. The useful question isn’t whether to have one, but whether you’re using it as a payment tool or as a loan. Those are two very different products sharing the same piece of plastic, and the price difference between them is enormous.
Used as a payment tool, a business card hands you several weeks of interest-free float, a clean spending trail and maybe a points balance. Used as a loan, with a balance rolled over month after month, it’s among the more expensive ways a business can borrow.
What makes a card a “business” card?
On the surface, not much. Underneath, a few things matter:
- It’s for business purposes only. NAB spells this out on its business card pages, and issuers generally share that stance.
- You’ll need an ABN. The issuer verifies the registration before approving.
- Liability is set by the card. Some cards make the company liable with directors guaranteeing; others make each cardholder responsible. NAB notes that the business owner is responsible for all spending on additional cards issued to staff.
- Limits are often higher than personal cards, with minimum limits around $5k at some banks.
- Expense tools. Separate staff cards, spending controls and feeds into accounting software.
How do interest-free days really work?
The “up to 55 days” figure in a card’s marketing is a ceiling, not a promise. Here’s how it plays out on a card with a 30-day statement period and payment due 25 days after the statement:
| When you buy | Interest-free days you get |
|---|---|
| First day of the statement period | About 55 (30 + 25) |
| Halfway through the period | About 40 |
| Last day before the statement closes | About 25 |
| Any day, if you don’t pay the full closing balance | None on new purchases until the card is cleared, on most cards |
| Cash advance | None, interest runs from the day it’s taken |
That fourth row is the one that catches people. On most cards, paying anything less than the full closing balance doesn’t just cost interest on what’s left; it switches off the interest-free period for new purchases too. Read your card’s terms on this point.
As at October 2026, NAB lists up to 55 interest-free days on its Low Rate Business Card, up to 44 days on its two Business Signature rewards cards and up to 35 days on the NAB Business Card, with cash advances excluded where noted.
What does a business credit card cost?
| Cost | What to know |
|---|---|
| Annual or monthly card fee | Ranges widely. NAB’s business cards run from $60 per card a year on its low rate card to $295 on a Qantas rewards card, as at October 2026. |
| Interest on unpaid balances | Applies when you don’t clear the closing balance. |
| Cash advance charges | Usually a fee plus interest from day one. |
| International transaction fees | Common on purchases in foreign currencies or from overseas merchants. |
| Late payment and over-limit fees | Avoidable with a direct debit for the full balance. |
| Additional card fees | Some cards charge per staff card. |
We don’t quote interest rates on this site. Instead, add up the real dollars: twelve months of fees, plus any interest you expect to pay if the card isn’t cleared every month. If that second number is regularly above zero, keep reading.
The October 2026 surcharge change
Since 1 October 2026, merchants can no longer add a surcharge to eftpos, Mastercard or Visa payments, whether debit, prepaid or credit, following the Reserve Bank’s review. When your business pays a supplier with one of those cards, a card surcharge should no longer appear on the bill.
Two details are worth knowing. First, the RBA chose to keep the existing interchange cap on domestic commercial credit cards while lowering caps for consumer cards, saying it wanted to support competition in issuing commercial cards. Second, American Express and other three-party schemes weren’t covered by the decision, and the central bank has said they’ll be examined in its next review.
If your business also accepts cards, the same change affects your own pricing. That’s a topic for your payment provider, but it’s worth checking your margins now that surcharges can’t recover the cost.
Carrying a balance you can’t shift? Let us look at cheaper ways to clear it; asking never involves a credit check.
Card, line of credit or overdraft?
All three are revolving credit. They suit different jobs.
| Business credit card | Line of credit | Overdraft | |
|---|---|---|---|
| Best use | Everyday purchases paid in full | Recurring cash gaps of weeks to months | Day-to-day dips in the main account |
| Pays wages, ATO, rent? | Often not directly, or with fees | Yes, draw to your account | Yes |
| Interest-free period | Yes, if cleared in full | No | No |
| Cost of a carried balance | High | Moderate | Lower, especially if secured |
| Typical limit | Smaller | Larger, based on turnover | Larger with property |
Our business credit card vs line of credit comparison works through the choice in more detail.
A worked example: two ways to use the same card
An illustrative scenario only.
A small online homewares store spends about $14k a month on stock, packaging and advertising, all on a business card with a $25k limit.
- Owner A pays the full closing balance by direct debit every month. The business gets several weeks of float on $14k of spending, pays only the annual fee and collects rewards. The card is doing its job.
- Owner B has a slow quarter and starts paying the minimum. The balance creeps to $23k, interest is charged on it every month, new purchases lose their interest-free days, and the limit is almost exhausted just before the Christmas stock order.
Owner B’s problem isn’t really a card problem. It’s a cash flow gap of a few months, and it would cost less on a line of credit or a short term business loan that clears the card and restores its float. Our loan cost comparison calculator lets you set the two costs side by side in dollars.
Using a business card well
- Direct debit the full closing balance. It’s the single habit that makes a card cheap.
- Keep cash advances off the card. Use a line of credit or overdraft for cash needs.
- Set staff card limits and review statements monthly; you’re likely responsible for what they spend.
- Match the card to how you pay. If you clear it every month, a rewards card’s higher fee may pay for itself. If you sometimes can’t, a low-fee, low-rate card hurts less.
- Don’t let the card become your working capital facility. That’s what lines of credit are built for.
When the card is carrying more than it should
A business card is a great convenience. When it has quietly turned into the place a cash shortfall lives, though, swapping that balance into proper business finance usually saves real money and frees the card up for what it does best.
Getting in touch takes about a minute, and asking leaves no footprint on your credit history. We won’t shop your name around the market; one specialist reads what you send and calls you personally. Share the actual card balances, your monthly turnover and any other debts, so the structure we suggest on that first call actually fits.
Frequently asked questions
How do interest-free days work on a business credit card?
The advertised figure is a maximum. A purchase made on the first day of a statement period gets the whole period plus the time until the payment due date. A purchase made the day before the statement closes gets only the gap until the due date. The interest-free benefit only holds if you pay the full closing balance by the due date.
Can I get a business credit card as a sole trader?
Yes. Issuers generally need an active ABN and assess the owner's personal credit history and income. As a sole trader, you are personally liable for the card balance because the business and you are the same legal person.
Who is liable for a business credit card debt?
It depends on the card. Some cards make the business liable with directors guaranteeing the debt; others make the individual cardholders jointly liable. NAB, for example, states that the business owner is responsible for spending on additional cards. Check the terms before issuing cards to staff.
Does a business credit card affect my personal credit score?
Applying typically involves a check of the owner's or directors' personal credit files, and any personal guarantee links your credit to the card's performance. Missed payments on a guaranteed card can end up affecting your personal standing.
Can I still be charged a surcharge when I pay with a business card?
From 1 October 2026, the Reserve Bank removed surcharging on debit, prepaid and credit cards on the eftpos, Mastercard and Visa networks. Other networks, such as American Express, sit outside that decision for now and are part of further RBA review.
Should I pay my BAS or tax bill with a business credit card?
It can work if you clear the card in full by the due date, but card payment fees often apply and the interest bill is steep if you can't. For larger or longer-running tax debts, a term loan or payment plan is usually a better fit.