Is the Barclaycard Select Cashback credit card the best choice for sole traders?

Today I want to look at the benefits of the Barclaycard Select Cashback credit card for businesses.

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. As part of our relationship with Barclaycard we have access to non-Avios Barclaycard products. As you should know, however, we only promote products which genuinely offer value. You won’t see any other 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 and 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 Visa card. This earns points worth an impressive 1 Avios per £1 spent and is now FREE. Our review of the Capital on Tap SME card is here and you can apply here.

However, Capital On Tap is only accepting Limited Companies and LLPs. You cannot get the card if you are a sole trader or 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 when spending £2,000+ per month

The legal stuff

Key link: Barclaycard Select Cashback credit card application form

The representative APR is 26.5% 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 as long as you spend £2,000 in that month.

No cashback is paid in months when you do not spend £2,000.

You are paid your cashback each month via a credit to your card statement.

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, for example, a free year of Zipcar membership (plus £50 driving credit) and 66% off AA membership.

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%.

You will pay the same 2.99% fee if you use any of the American Express Business cards that we cover. The Capital on Tap Visa card has NO FX fees but does not accept sole traders, only Limited Companies and LLPs.

Conclusion

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

With no annual fee and 1% cashback on virtually all your spending if you spend £2000 per month, there is nothing to dislike if you are blocked from the Capital on Tap Visa card.

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.

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

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.