Capital One® Spark® Cash Select for Business Review
There are dozens of reward cards offered for small business owners, and most require the payment of a substantial annual fee. But when you're just starting your business, you may need the benefits of a premium business card but without the costs. The Capital One® Spark® Cash Select for Business offers you cash back at a competitive rate of return without having to pay a costly annual fee.
How This Card Works
With this card, you earn an unlimited 1.5% cash back on all purchases, and redeem your rewards in any amount with no minimum. In addition, new cardholders earn $200 in cash back when they use their card to spend $3,000 on purchases within the first three months of account opening.
As a Visa card, you can also save up to 15% on your business purchases by using Visa SavingsEdge. This program offers Visa business cardholders discounts at many large retailers including Chevron, Texaco, National car rental and Wyndham hotels. You simply register your card first, and then you are automatically eligible to receive savings on your purchases.
Other business specific benefits include free employee cards that allow you to track your business spending and earn rewards on purchases made by your employees. You also receive quarterly and year-end summaries as well as downloadable purchase records in formats that are compatible with Quicken®, QuickBooksTM, and Excel®.
Other benefits include a purchase protection policy that covers you if an eligible item bought with your card is lost or stolen within 90 days of purchase. An extended protection policy will double the length of an eligible item's manufacturer's warranty, up to one additional year. And when traveling, you receive an auto rental collision damage waiver policy so you don't have to purchase the expensive optional coverage offered by rental car agencies. As a Visa Signature card, you receive a variety of travel and shopping discounts, as well as access to dining, entertainment, and sporting events.
New accounts receive nine months of 0% APR introductory financing on new purchases. Once the promotional financing period ends, the standard interest rate will apply, which is 20.24%, 24.24% or 28.24% APR, based on your creditworthiness when you opened your account. There's no annual fee for this card, and like all Capital One cards, there are no foreign transaction fees imposed on charges processed outside of the United States.
This card offers a strong rate of cash back for a small business card that doesn't have an annual fee. By earning 1.5% cash back on all purchases, small business owners can save a considerable amount of money on their regular business spending. Even more savings are available when you utilize the Visa SavingsEdge discount program. The $200 sign-up bonus is also a welcome feature.
This card's nine months of introductory financing can also be extremely valuable for new businesses that need time to generate their initial revenue. In addition, this card is full of features such as data exporting and reporting tools that can make it easier to manage your business.
Finally, this card has no annual fee or foreign transaction fees, so business owners can easily avoid paying any fees so long as they make their payments on-time.
1.5% cash back is a competitive rate of return for a card with no annual fee, but other cards with annual fees can offer even stronger returns. For example, Capital One's own Spark® Cash for Business card features 2% cash back on all purchases, but it imposes a $95 annual fee that's waived the first year.
This card also lacks some of the additional purchase protection and travel insurance features that can be found on many small business reward cards that have an annual fee. Finally, frequent business travelers who have this card will miss out on the benefits found on premium reward cards such as priority service from the airlines or airport lounge access (the high-end cards that offer these benefits can also have annual fees in the hundreds of dollars).
This is an ideal card for new business owners who need a credit card that has a strong but simple rewards program and valuable benefits. While frequent business travelers might be interested in a premium travel rewards card, those who are just looking for a competitive cash back card with no annual fee will be satisfied with the Capital One® Spark® Cash Select for Business.
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Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.