How credit cards can help your business save on shipping costs

Written by
John Egan
Terms apply; see the online credit card application for full terms and conditions of offers and rewards.

U.S. businesses are being squeezed when it comes to shipping costs.

Across the board, FedEx and UPS are raising their shipping rates by 6.9% in 2023. At the same time, the U.S. Postal Service is hiking shipping rates in 2023 by an average of as much as 7.8%. One of the factors driving these increases is inflation.

Meanwhile, online shoppers increasingly demand free shipping.

According to Shopify, which operates an ecommerce platform for businesses, 8.7% of a small business’ average first-year budget of $40,000 goes toward shipping. That works out to $3,480 for sending packages and other items.

So, what can a business do to ease the burden of shipping expenses? One option is to use business credit cards that feature breaks on shipping costs. Here are some offerings from American Express, Capital One and Chase that might decrease the financial weight of shipping.

Best credit cards for saving on shipping costs

American Express

If you’re an Amex merchant, you can enjoy exclusive FedEx savings through FedEx advantage; however, even if you aren’t an Amex merchant, you can still save on shipping with the right American Express business credit card.

The CardName discontinued, for example, earns four points per dollar spent in the top two spending categories during a billing cycle. This includes U.S. purchases on shipping. The four-points-per-dollar offer applies to the first $150,000 in combined purchases from the top two categories each calendar year. Otherwise, you earn one point per dollar spent. American Express is a CardRatings advertiser.

In addition, new cardholders can earn 70,000 Membership Rewards points once spending $10,000 on eligible purchases in the first three months of having the card.

The Business Gold Card charges a AnnualFees annual fee. See Rates and Fees

Another card to consider to help with shipping costs is CardName discontinued. The Business Platinum Card provides five points per dollar spent on flights and prepaid hotels booked through amextravel.com, and one point for each dollar you spend on other eligible purchases. Additionally, earn 1.5 points on eligible purchases at U.S. construction, material and hardware supplies, electronic goods retailers, software and cloud system providers, and finally, with shipping providers, as well as on purchases of $5,000 or more everywhere else, on up to $2 million in purchases per calendar year.

Furthermore, you can earn 120,000 Membership Rewards points once spending $15,000 on eligible purchases with your card in the first three months of opening an account.

The Business Platinum Card charges a AnnualFees annual fee. See Rates and Fees

Finally, if you regularly stay in hotels for business travel, the CardName discontinued is another good option to consider as it can save you money on both hotel stays as well as shipping costs. Cardholders earn four points for purchases made at restaurants worldwide, at U.S. gas stations, on wireless telephone services purchased directly from U.S. service providers, and on U.S. purchases for shipping. Additionally, earn six points on eligible purchases at hotels participating in the Marriott Bonvoy program, and two points on all other eligible purchases.

For a limited time, you can earn 125,000 Bonus Marriott Bonvoy Points after you use your new card to make $8,000 in purchases within the first six months of card membership. Offer ends 11/1/23.

This card charges a AnnualFees annual fee. See Rates and Fees

Capital One

For businesses with less-than-great credit, the CardName might be an attractive option for saving money on shipping.

The Capital One Spark Cash Select is designed for business owners with good credit, and gives you an unlimited 1.5% cash back on every purchase (such as shipping), without limits or category restrictions. In addition, new cardholders can enjoy 0% intro APR for 12 months before the regular ongoing RegAPR APR applies, giving you extra time to pay off purchases interest-free, should you need it.

This card doesn’t charge an annual fee.

Chase

The CardName might be right for you if you do a lot of travel and shopping.

A holder of the CardName earns three points per dollar on the first $150,000 spent each account anniversary year in combined purchases on travel and select business categories, including shipping.

After reaching the $150,000 mark for combined purchases in one year, cardholders receive one point for each $1 spent in the same categories with no maximum point accumulation.

Points can be redeemed for items such as gift cards, travel, and pay-with-points products and services. At the time of this writing, points redeemed through Chase’s Pay Yourself Back program for shipping are worth 25% more.

Other perks of this card include 100,000 bonus points, worth as much as $1,250 when redeemed for travel, earned after spending $8,000 on purchases in the first three months after opening an account.

The Chase Ink Business Preferred card charges a AnnualFees annual fee.

If you’re looking for a no-annual-fee option, the CardName is another solid choice.

The card supplies unlimited 1.5% cash back on every business purchase, including shipping. Like the Preferred card, the Unlimited card offers a bonus value on shipping rewards redeemed through the Pay Yourself Back program, though just 10% instead of 25%.

There’s no annual fee. Plus, you can earn $900 bonus cash back after you spend $6,000 on purchases in the first three months after the account is opened.

See Rates and Fees for the CardName; See Rates and Fees for CardName; See Rates and Fees for the CardName

author
John Egan
Cardratings Contributor

John Egan is a content creator and content marketing strategist in Austin, Texas. His specialties include personal finance, real estate, and health and wellness. John’s work has been published by outlets such as CreditCards.com, Bankrate, Forbes Advisor, Experian, Capital One, The Balance and U.S. News...Read more

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The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

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