The Scotiabank Momentum for business offers excellent cash back compared to the business card competition, a 25 day grace period on purchases, and a first-year annual fee waiver – and the fee is quite low anyway at $49. If you happen to be stuck paying off a business expense at a high APR, Scotiabank is offering a 6-month 2.99% introductory rate on balance transfers. Perfect opportunity to get onboard.
Scotiabank offers an unusually rich cashback scheme for the business card sector.
|3% cash back||1% cashback|
|Gas, Restaurants, Office Supplies, and Recurring Bills||Everything else|
That 3% is very high, and it specifically targets many of the most important categories for small businesses. The recurring bills category includes things like internet, phone bill, insurance payments and utilities – a large segment of fixed costs for most any business. Office supplies will of course be extremely useful, as will gas and restaurants, important when traveling or entertaining clients.
The 3% cashback is limited to the first $50,000 in spend annually. The cashback is paid as a statement credit, or into an eligible account, after the end of each 12 month period, beginning and ending in December.
Whilst a once annual payment of cash back might be an annoyance to some, it is paid in full, down to the cent, and operates exactly as cash. So it’s got two of three important cashback considerations down – misses on frequency, but hits on flexibility and lack of breakage.
The 25 day grace period essentially means that large payments can be timed to ensure a full 55-day pay back window. Simply time large payments to correspond to the beginning of a new statement month. When the statement month ends, the payment due date will not arrive for an additional 25 days. Voila.
The Scotiabank momentum business credit limit varies from $500 to $50,000, and of course depends greatly on the personal circumstances of each applicant.
Insurance and Protection
Scotiabank has really great general coverage, including the travel medical – quite rare to find on a card that is essentially fee-free. The one omission would be employee misuse coverage, a protection against fraudulent card misuse by supplemental card holders.
|Travel Medical||Up to $1M coverage for holder, spouse and children for eight consecutive days, 65+ three consecutive days.|
|Flight Delay||Up to $500 per person on flights delayed by four hours or more. Card must be used.|
|Rental Collision and Theft||Rental cars covered against damage and theft. Card use required.|
|Common Carrier Insurance||$500,000 against death or dismemberment when traveling in planes, trains, autos, boats, etc. Card use required.|
|Lost or Delayed Luggage||Lost luggage capped at $1,250 per group; delayed luggage up to $1,000. Card usage required.|
|Hotel/Motel Burglary||Covered up to $1,000 in losses. Card usage required.|
|Purchase Security||Purchases insured for 90 days against loss, theft or damage.|
|Extended Warranty||Manufacturer’s warranty doubled for up to one year.|
Supplemental cards may be added for $29, which provides additional cashback for the company while provides all the insurance features described above as an additional benefit for employees.
Additional cards allow the consolidation and tracking of all business expenses, which is useful for accounting and tax planning.
The Scotiabank Momentum Visa for Business is a strong contender for the best business card in the market. It offers a 25 day grace period with a very low annual fee (waived year one), really good cashback percentages on important business categories, and very good insurance coverage. The absence of a welcome bonus might frustrate some, but for a long-term card this is a minor consideration. It’s missing employee card misuse coverage and is a bit light on the expense management tools front, but most could probably do without these features.