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Wisconsin entrepreneur who spends $20K a month mulls getting a credit card. Dave Ramsey says points are a scam and reveals secret sauce for profit

The best rewards program for small-business owners? Profits.

Becky Berkan, a small-business owner in Wisconsin, called Dave Ramsey with a big-business question.

Berkan is owner-operator of Wilson Aesthetics Company in Madison, Wisconsin. She spends $10,000 to $20,000 a month buying products for the business, using a debit card to do so.

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“My question is in regards to getting a business credit card and the downfall of what that would be,” she said in an appearance on The Ramsey Show (1).

She proudly told Ramsey that her business is debt-free and she only buys what she can afford.

But as an entrepreneur, she was curious about the pros and cons of getting a business credit card.

“So you’re only interested in points?” Ramsey asked, noting that technically Berkan doesn't need credit.

“Well, yes,” she admitted, laughing.

Ramsey had a firm answer for her, calling rewards programs a ‘momentary flex’ that distracts entrepreneurs from what actually builds long-term wealth in a business.

Points: Real value or illusion?

According to a 2025 J.D. Power study, the vast majority (89%) of U.S. small businesses use credit cards for purchases and many rely on features such as rewards and payment plans (2).

With constant expenses and tight margins, small business owners swipe credit cards more than almost anyone since they’re always looking for an edge on the bottom line.

Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here’s the number that counts (and how to make it skyrocket)

But nearly half of small business owners who use credit cards say they’re struggling financially.

Meanwhile, the payoff from rewards drops if business owners are carrying balances on their cards, as interest charges eat into profits.

That’s why Ramsey argues that points don’t build real wealth. They don’t boost cash flow, grow your customer base or strengthen your business.

At best, rewards programs give a small discount on money you were already going to spend.

But they can also encourage owners to spend more and lean harder on bank credit.

Ramsey argued that the real “secret sauce” of business success isn’t reward points, but profitability and operational excellence.

“Your time and your brain calories are worth a lot more than you’ll be spending chasing a couple of points here or there,” he said.

In his view, rewards are perks, not profit-drivers.

Ramsey even went as far as to say that points are a “scam,” not in the legal sense, but in the sense that reward programs are designed to make people feel like they’re getting value for spending, not for saving.

Credit card rewards aren’t free money. They’re funded by fees merchants pay, costs that get baked into higher prices and rarely show up as real profit for a business (3).

So what’s the best call for a business owner when it comes to credit-card rewards programs?

The pros and cons of credit-rewards programs

Even though rewards can be tempting, credit cards can carry risks for small businesses:

High interest rates. Carrying balances quickly wipes out any rewards earned and adds expenses if you’re loading up on debt (4).
Cash-flow strain. If you don’t pay off your balances monthly, credit card use can actually delay revenue and make budgeting harder.
Overspending. Business owners can be tempted to spend more than they typically would just so they can hit a threshold or score bonuses just to earn points.
Liability and credit risk. Many business cards require personal guarantees, so if you miss payments it can impact your personal credit score (5).

On the other hand, if you’re a disciplined business owner — tracking your spending, avoiding overspending and paying your balance in full each month — reward programs can add value.

They might not be wealth builders, but credit cards can be used as cash-flow optimizers as long as you’re not carrying interest on debt each month.

So if your business already operates on rigorous cash discipline, using a business card to capture a few percentage points back on spend you would make anyway might be worth it.

Takeaways for entrepreneurs

When it comes to credit-card rewards programs, consider the following:

Prosperity comes from profit. Points won’t grow your service offerings or client base, but being disciplined and rigorous in your business strategy can.

Avoid revolving debt. Interest costs often outpace any benefits from rewards.

Be intentional. If you use credit cards for convenience and track expenses expertly, choose cards with fees and rewards that make sense with your spending patterns.

Calculate the value. A $1,000 reward rebate on $100,000 can seem like a great bonus, but it’s not transformative unless your business fundamentals are solid and it shouldn’t be an excuse to overspend to reach the reward level.

Reward points can be a nice bonus, but a real financial strategy for business owners should focus on long-term growth, resilience, and wealth building.