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Business Credit Cards in Canada: How They Work

By PointsExplainedLast reviewed

Choose personal or business liability

Decide whether you want the debt on your personal credit report or the business's, and check whether a personal guarantee is required.

Gather your documents

Have personal ID, your CRA Business Number and your business registration documents ready.

Set employee cards and limits

Issue cards only to people who need them, set individual limits and review their spending.

Keep business and personal spending separate

Use the business card only for business costs so your records stay clean at tax time.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. CIBC - Business or personal liability: choosing a business credit card (Oct. 31, 2023)

    Business cards let you authorize employees, issue cards, set limits and monitor spending; personal liability (personal credit report, personal borrowing) vs business liability (business and owners' credit, personal guarantee, business credit report); separating business and personal expenses saves time at tax time.

    cibc.com · Accessed
  2. CIBC - How to apply for a business credit card

    Most business owners, sole proprietors or those with under two years of financial history, are eligible to apply for CIBC's personal liability business cards; documents include personal ID, CRA Business Number and business registration documents.

    cibc.com · Accessed
  3. FCAC - Getting a credit card: know your rights (page dated 2025-10-15)

    The mandatory low-balance/low-credit electronic alert doesn't apply to accounts opened for business purposes.

    canada.ca · Accessed
  4. Visa Canada - Security and Zero Liability policy (modified 2023-12-14)

    Visa Zero Liability covers Canada-issued cards but not anonymous prepaid, Visa Purchasing, Visa Corporate or Visa Commercial cards.

    visa.ca · Accessed
  5. Aeroplan - General Terms and Conditions

    Aeroplan may limit New Card Bonuses and may treat switching between multiple Aeroplan cards or cancelling shortly after a bonus as excessive use.

    aircanada.com · Accessed
  6. Amex Bank of Canada - Membership Rewards Program Terms and Conditions (PDF, form 50451591 (04/25))

    Only individuals can hold a points account; corporate card participation requires employer approval; small business cards listed among Membership Rewards cards.

    americanexpress.com · Accessed
  7. Canada Revenue Agency - Line 8710: Interest and bank charges

    Interest on money borrowed for business purposes can be deducted, with limits; interest on money borrowed for personal purposes can't; page covers interest and certain loan fees and does not mention card annual fees.

    canada.ca · Accessed
  8. Canada Revenue Agency - Loyalty or other points programs

    Administrative policy on employee-collected points from employer-reimbursed business expenses.

    canada.ca · Accessed
Questions

About this guide

Do I need a registered business to get a business credit card?

Requirements vary by issuer. CIBC, for example, says sole proprietors are eligible to apply for its personal liability business cards, and lists your CRA Business Number and business registration documents among the documents you may need.

Does a business credit card affect my personal credit?

It can. CIBC explains that the debt on a personal liability business card appears on your personal credit report. With its business liability cards you still give a personal guarantee, but the debt is reported on the business's credit report.

Can I use business card rewards for personal travel?

That depends on the program's terms and, if you're an employee, on your employer's rules. The CRA says that when an employee collects points on employer-reimbursed business spending, redeeming them isn't a taxable benefit under its administrative policy if the employer doesn't control the points, they aren't converted to cash, and the arrangement isn't a form of pay or tax avoidance.

Is the annual fee on a business credit card tax-deductible?

Ask your accountant. The CRA's Line 8710 guidance covers interest on money borrowed for business purposes and certain loan fees; it doesn't mention credit card annual fees.
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