Using a cash back credit card for your business can push a few more dollars down to your bottom line, which is always a good thing. The Ink Cash® Business Credit Card and the Capital One® Spark® Cash for Business are among the best cash back business cards available. Which one is right for you depends on your business and its expenses. Let’s take a look.
Rewards
The Capital One® Spark® Cash for Business’s rewards structure is as simple as it gets. Cardholders earn a flat 2% cash back on every purchase. Your cash rewards never expire, there’s no limit to how much you can earn, and there’s no minimum amount needed to redeem.
With the Ink Cash® Business Credit Card, it’s a little more complicated. You earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on phone, Internet and cable TV services each account anniversary year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year; and unlimited 1% cash back on all other purchases.
Winner: Depends on your spending
The Ink Cash® Business Credit Card offers an opportunity to earn major rewards, but only if your business expenses align with its bonus categories. On the other hand, you’ll get a flat 2% back with the Capital One® Spark® Cash for Business, regardless of the expense. Take a look at your regular transactions to determine which card offers better rewards for you.
Sign-up bonus
Though the Ink Cash® Business Credit Card can be more rewarding over the long term, its sign-up bonus isn’t very exciting: Earn $200 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening. On the other hand, the Capital One® Spark® Cash for Business’s sign-up bonus is solid: Earn a one-time $500 cash bonus once you spend $4,500 on purchases within the first 3 months.
Winner: Capital One® Spark® Cash for Business
If a sign-up bonus is high on your priority list, the Capital One® Spark® Cash for Business is a no-brainer, with a bonus more than double that of the Ink Cash® Business Credit Card.
Interest rate
The ongoing APR is 17.24% (Variable) for the Capital One® Spark® Cash for Business, a decent rate for a business credit card. The Ink Cash® Business Credit Card, on the other hand, offers a 0% Intro APR for 12 months on purchases and balance transfers, and then the ongoing APR of 13.49%-19.49% Variable.
Winner: Ink Cash® Business Credit Card
If you need some time to pay off a large business expense or transfer a balance from a high-interest business credit card, the Ink Cash® Business Credit Card’s introductory 0% APR period is as good as it gets for business cards. And if you have excellent credit, you may qualify for a better ongoing APR than what you’d get with the Capital One® Spark® Cash for Business.
Fees
Let’s start with arguably the most important fee: the annual fee. The Ink Cash® Business Credit Card’s is $0, and the Capital One® Spark® Cash for Business’s is $0 intro for first year; $59 after that. If you want to take advantage of the Ink Cash® Business Credit Card’s balance transfer offer, you’ll end up paying a balance transfer fee of 5%. On the other hand, the Capital One® Spark® Cash for Business doesn’t charge a balance transfer fee, although any balance you transfer will be assessed interest at the card’s purchase APR.
If you’re looking to do cash advances with your card, the Ink Cash® Business Credit Card charges a fee of 5% of the transaction, while the Capital One® Spark® Cash for Business’s cash advance fee is 3%. Finally, the Capital One® Spark® Cash for Business, like all Capital One cards, doesn’t have a foreign transaction fee. The Ink Cash® Business Credit Card charges a 3% fee on foreign purchases.
Winner: Depends on how you plan to use the card
If you’re not planning on doing a balance transfer or cash advance, or travel overseas, the Ink Cash® Business Credit Card is the clear winner with its $0 annual fee. If you think you’ll need to do those things, however, you might be better off paying the Capital One® Spark® Cash for Business’s annual fee to get lower fees overall.
Making your choice
There’s no clear winner between these two cards because the value you get from each depends on the nature of your business and its expenses. Taking both cards at face value, the Capital One® Spark® Cash for Business offers more value upfront, and the Ink Cash® Business Credit Card is more rewarding over the long term.
If your business doesn’t spend according to the Ink Cash® Business Credit Card’s bonus categories, however, you’re looking at a mediocre 1% rewards rate on most of your purchases. In that case, you’re better off with the Capital One® Spark® Cash for Business.
As usual, the Nerds recommend reviewing your needs and reviewing other business credit cards before applying for one.
Ben Luthi is a staff writer at NerdWallet, a personal finance website. Email: bluthi@nerdwallet.com. Twitter: @benluthi
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