The Capital One Spark Cash for Business offers 2% cash back on all purchases for small businesses. Combined with its signup bonus, low annual fee, and other benefits, it’s an ideal choice for small business owners. We dig into the details in this Capital One Spark Cash for Business review.
The primary business credit card I use today is the Capital One Spark Cash for Business. I love the simplicity and excellent rewards. As a 2% rewards card, it generates the most cash back of just about any single business card available today. I could use 3 or 4 cards and increase my rewards on certain types of purchases (e.g., travel, dining). I prefer the simplicity. And it integrates with Quickbooks and other accounting software seamlessly.
Let’s review the details of this card to see if it’s right for your business.
- 2% Cash Back: Earn 2% cash back on all purchases. This is one of the few credit cards offering 2% in rewards
- Welcome Bonus: Earn $500 cash bonus after spending $4,500 on purchases within the first 3 months
- $0 intro annual fee for the first year; $95 after that
- Rewards won’t expire for the life of the account, and you can redeem your cash back for any amount
- Get employee cards at no additional cost, and earn rewards from their business spend
Pros & Cons
What we like
- 2% cash back on every purchase
- Excellent signup bonus
- Employee at no additional cost
What could be better
- $95 annual fee after the first year
The Capital One Spark Cash for Business comes with a $500 signup bonus. To qualify, you must spend $4,500 in the first 3 months of card ownership.
After the signuip bonus, the Capital One Spark Cash for Business offers a flat 2% cash back on all purchases. To my knowledge, there is no business credit card that does flat cash back better. You might be able to earn 5% cash back on office supplies. You might be able to earn 3% cash back on your phone bill or travel.
The majority of small business purchases you make, however, will qualify in the “general” category. For most cards, these purchases earn just 1%. Getting 2% on everything results in higher reward total than chasing elevated rewards on select categories of purchases.
My business spends about $50,000 a year on the card. As a result, I earn $1,000 a year in free cash.
Redeeming rewards is easy. You can redeem at any time and in any amount. Capital One will apply the rewards to your credit card or mail you a check. You can also redeem via PayPal. Finally, you can use your rewards to make purchases on Amazon.
No foreign transaction fees – If your business makes purchases outside of the United States (whether physically in another country or online with an international processor) you will not be charged a transaction fee. Some credit cards charge up to 3% to exchange foreign currency from the buyer to the seller. Capital One does not.
Auto rental collision damage waiver – If you use your card to rent a vehicle, you do not have to pay for the added collision insurance because your credit card will cover it. However, it is important to read the rules closely on which cars are covered and which are not.
Emergency assistance services – When you’re on the road, the phone number on the back of your Capital One card can be of great value. Calling them will give you access to legal or medical referrals, assistance if you’re stuck on the side of the road or help in replacing a travel ticket you’ve lost. Be advised that if you utilize a service such as roadside assistance, you’ll be charged from the merchant.
These are just some of the extra benefits offered by the card. You can find a complete list and the program’s terms and conditions Capital One® Spark Business ENHANCED VISA SIGNATURE BUSINESS® GUIDE TO BENEFITS.
Credit Needed for Approval
You need good to excellent credit to qualify for the Capital One Spark Cash for Business. While Capital One doesn’t disclose a minimum acceptable score, I suspect you’ll want a score of 700 or higher to have a good shot at approval. Keep in mind, however, that a high credit score doesn’t guarantee approval. They consider many factors in their underwriting process, and I’ve heard of individuals with scores in the 800s who’ve been denied.
Who the card is best for
The Capital One Spark Cash for Business is ideal for any small business looking to maximize credit card rewards without juggling purchase categories.
Who might do better with a different card
Business that spend a lot in specific categories might do better with a different card, or perhaps with carrying multiple credit cards. For example, a business that spends a lot on online advertising or travel should consider the Chase Ink Business Preferred credit card.
Capital One Spark Cash for Business Rating
The Capital One Spark Cash for Business is the business card I’ve used for years. It pays 2% cash back on all purchases, has an attractive signup bonus, and low annual fee.
Yes. In fact, I’d say it’s excellent. I’ve carried it for years. Its combination of excellent rewards, low fees, and phenomenal benefits make it one of the best business credit cards available today.
You need good to excellent credit. While Capital One doesn’t disclose a minimum credit score, aim for 700 or higher to have the best chances of getting approved.
No. You can run the business in your own name as a sole proprietor and use your social security number when you apply for the card.
No. You can use your social security number if your business doesn’t have a separate EIN.
The Capital One Spark Cash for Business is in my opinion an excellent business credit card. Capital One’s website is easy to use, and it’s a snap to redeem cash back for a statement credit, cash, or to use on Amazon. If you’re still not sure what’s best for your business, check out my list of the best business credit cards (which I update monthly).