Who is State Farm Bank Business Visa Designed For?
The State Farm Bank Business Visa credit card is designed for State Farm policyholders with good credit who own small businesses and want a no-annual-fee rewards card. It's particularly suited for businesses that spend a lot on travel and office supplies.
What are the Rates?
Regular purchases and balance transfers come with a rate ranging from 13.74% APR to 20.74% APR, depending on creditworthiness, which isn't terrible. Cash advances have a fixed rate of 20.74% APR for all cardholders. However, this card does have a 24.74% APR penalty rate that kicks in if you are late on a payment or one of your payments is returned. The penalty rate continues until you make six consecutive payments on time.
What Are the Fees?
One of the best features of the State Farm Bank Business Visa is that it doesn't have an annual fee. However, it does have a $10 or 3% (whichever is higher) balance transfer fee and a $10 of 4% (whichever is greater) cash advance fee. It also comes with a 1% foreign transaction fee.
Penalty fees are particularly high. There's a $39 fee on late payments, returned payments and when cardholders go over their credit limit. If the balance on the card is less than $500, the late payment fee is dropped to $15.
Although the foreign transaction fee is only 1%, it's disappointing that a card geared toward travel has an international transaction fee at all.
What Is the Rewards Program Like?
State Farm's cash back rewards program is rather lame for a card that requires good credit and is geared exclusively toward businesses. Cardholders earn 2% cash back for every dollar spent on travel and office supplies and 1% on all other purchases.
There is no limit to the amount of points members can earn and points do not expire. As with most rewards programs, a point is worth a cent so 10,000 points will give you $100. Members can redeem their points by either depositing the cash certificate check in a State Farm checking account, investing it in a State Farm fund, or putting it toward the cost of a State Farm insurance policy.