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NOW 2% CASHBACK: the Barclaycard Select Cashback credit card for SMEs and sole traders

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Today I want to look again at the benefits of the FREE Barclaycard Select Cashback credit card for businesses. This includes sole traders, who are blocked from the Capital On Tap Avios-earning SME card.

As a special offer, you will receive 2% cashback, instead of the usual 1%, on all of your qualifying spending in your first three months. You need to apply by 2nd April.

The application form is here.

Barclaycard Select Cashback credit card

Let me answer the obvious question first. Why are we covering it, given that it doesn’t earn you any points or miles?

(The cynical answer, of course, is that Barclays will pay us if you apply, which is true. We now have access to all Barclaycard products. As you should know, however, we only promote products which genuinely offer value. You won’t see any other non-Avios Barclaycard products on HfP.)

Why would you get a cashback small business Mastercard?

There is, at the moment, a gap in the market for small business miles and points cards.

You can apply for American Express Business Platinum, American Express Business Gold or British Airways Accelerating Business but Amex acceptance is lower in the B2B market than in the consumer market. You will need a Visa or Mastercard as well.

Our recommended alternative is the Capital On Tap Business Rewards Visa card. This earns points worth an impressive 1 Avios per £1 spent. Our full review of the Capital On Tap card is here.

Capital On Tap is only accepting Limited Companies and LLPs. You cannot get the 10,500 Avios sign-up bonus on this card if you are a sole trader or in a partnership.

This leads to the question ‘What is the best business Visa or Mastercard for a sole trader to use alongside a Business Amex?’.

The answer is probably a card which is:

  • free, and
  • offers 1% cashback on virtually all of your spending, and currently offers 2% cashback for the first three months

…. which is what you get with the Barclaycard Select Cashback credit card.

Barclaycard select cashback credit card review

Key link: Barclaycard Select Cashback credit card application form

The representative APR is 27.5% variable but may vary based on your financial circumstances and borrowing history.

What are the conditions of applying?

As well as the standard age and residency restrictions, your business turnover must be over £10,000 per year.

If you are a start-up, you are welcome to apply if your business plan shows expected turnover of £10,000+ per year.

Sole traders are welcome to apply.

What is the Barclaycard Select Cashback annual fee?

There is no annual fee.

What do I earn per £1 spent on the card?

You earn 1% cashback on virtually all spending charged to the card.

If you apply by 2nd April, you will receive 2% cashback – instead of the usual 1% – on qualifying purchases in your first three months.

You are paid your cashback each month, via a credit to your card statement. There is no cap to the cashback you can earn.

Barclaycard Select Cashback credit card

Any other benefits?

Barclaycard runs a special programme for its Business credit and charge card holders called Business Rewards.

You can find full details on this page of the Barclays website.

It offers a variety of discounts and cashback deals for customers. These currently include one year of free Zipcar membership (usually £60).

Specifically for holders of the Select Cashback card, you can get free access to FreshBooks Plus accounting software – saving up to £264 per year.

Is this a good card to use when travelling?

It’s not ideal, as Barclaycard Select Cashback charges a 2.99% foreign exchange fee on non-Sterling transactions.

However, you will receive your standard 1% cashback which takes the net cost down to 1.99%. In the first three months you’ll receive 2% cashback, taking your net cost down to 0.99%.

You will pay the same 2.99% fee if you use any of the American Express Business cards that we cover.

If you have a Limited Company, it’s worth knowing that the Avios-earning Capital On Tap Business Rewards Visa card has NO FX fees. Capital On Tap is the only Avios-earning credit card, personal or business, with no foreign exchange surcharges.

Conclusion

The Barclaycard Select Cashback credit card is an aggressively good product from Barclays.

With no annual fee and 1% cashback (currently 2% for your first three months if you apply by 2nd April) on virtually all your spending, paid monthly, there is nothing to dislike.

Let’s imagine that your company would spend £10,000 on the card over the next three months. You’d earn £200 cashback and, with no annual fee, that’s all money in the bank.

Even if you are considering getting American Express Business Platinum, Business Gold or British Airways Accelerating Business due to their generous rewards, this card is useful for places which do not accept American Express.

It is especially interesting for sole traders who are excluded from the Capital On Tap alternative.

Full details, and the application form, for the Barclaycard Select Cashback credit card can be found here.

The application deadline to receive the additional 1% cashback for your first three months is 2nd April 2024.

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points. The site discusses products offered by lenders but is not a lender itself. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as an independent credit broker.

Comments (9)

  • Ryan says:

    Here comes the usual “is it taxable or is it non-taxable” debate…

    • Andrew says:

      I think as it’s a credit back onto the account, there’s not really a debate on this one.

      I’d been wondering if this was worthwhile for HMRC payments in the first 3 months (given curve changes), but as a credit back onto the card, it’s a pretty marginal benefit, against feees of c. 1.7% iirc

  • James says:

    Will this stop you applying for a Barclaycard Avios SUB?

  • Stephen says:

    My understanding is that as a sole trader you can simply use a personal credit for your sole trader business, especially if you are simply trading in your own name, and do not need a “business” credit card. You can claim any credit card annual fee against tax (to the extent you use the card for your sole trader business)… I have a couple of cards that I use solely for my sole trader business so as to keep it distinct from my personal finances, even though as a sole trader there is no difference for tax purposes. Therefore a sole trader can simply get the best “personal” credit card they want. I trade on my own name so I appreciate it might be different if you wanted “trading as” written on the card.

  • Nate1309 says:

    We have this card, the customer service is absolutely abysmal

  • Pb says:

    They are also doing extra 2 on top from Jan to March for existing customers, over whatever limit they have calculated for you .
    Trouble is there app and systems are so antiquated that replenishing by paying off early even is a pain .
    Everything is a chore with them , typical Barclays really you must realise it’s a privilege to do business with them , but for three per cent I’ll put up with it .

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