Ramp vs. Brex: Which Card Is Better for Your Business?

Ramp and Brex are both financial technology companies that aim to help business owners track and manage company spending with software tools and financial products, including corporate credit cards.

Business owners can issue unlimited virtual and physical credit cards with both Brex and Ramp. Then, they can limit spending on those individual cards, create budgets, automatically categorize expenses and prompt users to upload receipts.

The key differences? Brex’s eligibility criteria focus on venture-backed startups, enterprise companies and businesses with annual revenue in the millions. It’s best for businesses that fall into those buckets and want a linked Brex business account for banking.

Ramp serves a broader group of small businesses, but they’ll have to do their banking elsewhere.

Ramp is available to most incorporated or registered companies, provided they have at least $75,000 in the bank. While that still leaves out a large number of business owners — the majority of entrepreneurs in the U.S. are sole proprietors — it’s much more inclusive then Brex, which requires venture or angel investment or annual revenue in the millions.

Flat-rate cash-back business credit cards offer two key advantages: You don’t have to worry about making purchases through a specific portal to maximize rewards, and you’ll get money back on all your spending, regardless of whether it falls into certain bonus categories. Ramp’s rewards structure beats Brex’s in terms of simplicity, especially if your business doesn’t spend much on travel.

Alongside its business credit card and spending management software, customers get access to the Brex business account. This is a business cash management account that offers no monthly fee, unlimited transactions and a high annual percentage yield (APY) on cash invested in money market funds (uninvested cash doesn’t earn interest).

All these features make Brex a good choice for startups with venture investment sitting in the bank. Expanded Federal Deposit Insurance Corp. (FDIC) insurance protects up to $1 million in uninvested cash, and you can earn returns on the rest.

If your business spends significant amounts on travel and hospitality expenses and you’re willing to book flights and hotels through Brex’s portal, then Brex is likely to offer much more lucrative rewards than Ramp. Its rewards rates are up there with traditional business travel credit cards — including up to 3x points on restaurants, 4x on travel portal purchases and 7x on rideshares.

In some instances, corporate cards like Ramp and Brex won’t make sense for your business. Instead, you should consider a traditional business credit card if:

• Your business is a sole proprietorship. Corporate credit cards aren’t available to sole proprietors. 

• Your business doesn’t meet Ramp and Brex’s minimum account balance requirements. Traditional business credit cards focus on your personal credit history — not your bank account balance — when evaluating your application for a card.

• You want the option to pay off large purchases over several months. Corporate credit cards don’t let you carry a balance from one statement period to the next, and some may require you to make payments as often as every day.

For most small-business owners, Ramp is more likely to be a fit simply because it’s easier to qualify for. The card’s flat-rate cash back offers simple rewards on all your business spending. Plus, you’ll have access to powerful software that you can use to monitor and control expenses across the company.