If you own a business, you understand the need to keep personal and business expenses separated and the importance of having an organized system to keep track of those expenses. Ideally, you’ll also have a system for earning rewards on every purchase your business makes. All of these reasons make a good case for your operation to have at least 1 business credit card.
Capital One, traditionally known for their personal credit card marketing jingle, “What’s in your wallet?” also issues a respectable collection of business credit cards that, just like their personal cards, deliver earnings on every purchase you make.
Known for their lack of complexity, Capital One credit cards offer simple earning structures, easy redemption options, and minimal bells and whistles when it comes to benefits. Don’t let the simplicity fool you, however, as the right Capital One business credit card could be an appropriate fit for your business.
Let’s take a look at the business credit cards Capital One has to offer and find out if there is a gem in here that makes sense for your business operation.
Best Capital One Business Cards for Travel
With unlimited earnings, every expense your business makes will be rewarded when you use a Capital One business card.
Whether you use your earned miles for flights, hotels, or other travel expenses, these cards can help reduce the cost of travel.
Top Card Benefits
- Welcome bonus worth up to $200 in travel
- No annual fee
- 1.5 miles per dollar earned on every purchase
- Unlimited earnings
A business with an upcoming large purchase or purchases could utilize the 0% APR and finance the expense with no interest charges.
The CapOne Spark Miles Select card is best for the business owner who does not want to pay an annual credit card fee, would prefer a simple earning structure, and wants an easy process for redeeming their miles.
The business owner should have sufficient cash flow to pay off the balance each statement period to avoid high interest charges.
- Doesn’t maximize earnings for businesses with big spending
- Higher variable interest rate
Bottom Line: If your business has high earnings that do not fall into traditional business expense categories, and you have business travel expenses to offset, the 1.5x earnings on all purchases and the ability to offset the cost of business travel could make the CapOne Spark Miles Select card a contender.
Redeeming Capital One Miles
Although Capital One rewards are referred to as miles, they are not frequent flyer miles but simply redeemable points.
Fortunately, the miles earned on the Capital One Spark Miles Select card are easy to redeem with Capital One’s Purchase Eraser and the ability to transfer miles to airline partners.
You can purchase travel from any travel provider using your Capital One Spark Miles Select card; once the charge shows up on your card statement, just redeem your miles online for a credit against your purchase.
You can also call the Capital One Rewards Center and book travel directly using your miles.
Capital One miles are worth one cent each towards travel for either of these 2 options. For additional potential value, you can transfer your Capital One miles to airline transfer partners and book award tickets.
There are other options for redeeming your miles such as statement credits for other purchases, experiences, or gift cards. However, the value you receive could be much less than 1 cent per mile.
Also, when your eligible card is linked to PayPal, you can checkout with PayPal and redeem your miles at a rate of 125 miles to $1. We’d recommend this only if you can’t use your miles for travel or as a statement credit.
Bottom Line: Capital One miles are easy to redeem for travel via Purchase Eraser or through the Capital One Rewards Center. Additional value may be realized, however, by transferring Capital One miles to airline partners.
Best Capital One Business Cards for Cash-Back
Cash-back rewards are as liquid as you can get and make it easy to reinvest the funds directly back into your business. Capital One has a few business cards offering cash-back rewards.
Top Card Benefits
- Welcome bonus worth up to $200
- No annual fee
- 1.5% cash-back on every purchase
- Unlimited earnings
The CapOne Spark Cash Select card is best for business owners who have lower spending and do not want an annual fee.
- Businesses with high spending will receive better earnings with other cards
Capital One® Spark® Classic for Business
Top Card Benefits
- No annual fee
- Unlimited 1% cash-back
- Does not require excellent credit to be approved
If your credit is less than perfect, the CapOne Spark Classic card may be a good choice as it does not require an excellent credit history for approval. You’ll also have the benefit of earning cash-back rewards without having to pay an annual fee.
You may also be starting out in business and need to make several purchases to get your business up and running. The CapOne Spark Classic card offers 0% APR for purchases that would allow you to repay for those purchases over time without incurring interest charges.
You should be able to pay off your card balance each month, however, as ongoing interest rates on the card are high.
- No welcome bonus
- High ongoing and penalty interest rates
Redeeming Cash-Back Rewards
Your cash-back rewards can be redeemed at any time for any amount. When redeeming your cash-back for a statement credit or check, you can expect to receive a full 1 cent value for each 1 cent in cash-back you have in your account. You may receive less value for other redemptions such as gift cards.
When your eligible card is linked to PayPal, you can checkout with PayPal and redeem your cash-back at a rate of $1 to $1.
Cash-back does not expire as long as your account is open.
If you plan to purchase a GM vehicle in the future and your business spends at GM dealerships, gas stations, restaurants, and office supply stores, you may benefit from the CapOne BuyPower Business card.
Top Card Benefits
In order to maximize earnings, the business must spend a lot on gas and have vehicles that get serviced often at GM dealerships. The business would also spend a lot on dining out, and at office supply stores.
In order to redeem earnings for maximum value, the business must purchase a new qualifying GM vehicle.
A business with a large purchase or purchases could utilize the 0% APR introductory offer to finance the repayment without interest charges.
- The card does not offer an upfront welcome bonus
- Cardholders must be in the market for a new GM vehicle
- Earnings must be redeemed towards the purchase or lease of eligible new vehicles from Chevrolet, Buick, GMC, or Cadillac, or a statement credit (up to $250 per year) for GM repairs and service
- Earnings cannot be redeemed for travel, cash, or gift cards
Additional Benefits of Capital One Business Cards
- Free employee cards
- Customized spending limits for each card
- Downloadable expense reports
- Annual summaries for tax purposes
- Ability to immediately track expenses
- Zero fraud liability
Travel and Shopping Benefits/Protections — Visa Signature Business Cards
Capital One business cards that are issued as Visa Signature cards come with the following additional benefits:
- Auto rental collision damage waiver — receive primary car rental coverage when used for business purposes (secondary for personal use) for damage, loss of use, and theft.
- Emergency travel assistance — provides assistance with referrals for legal, medical, translation, lost luggage, and more.
- Roadside assistance — receive 24/7 assistance services for towing, emergency gas, flat tire changes and more. The cardholder is responsible for actual services.
- Travel accident insurance — up to $250,000 in benefits for accidental death or covered severe injury when traveling on a licensed common carrier.
- Lost luggage insurance —- provides excess coverage of up to $3,000 for checked or carry-on luggage when damaged, lost, or misdirected by the common carrier.
- Price protection — covers eligible items for up to $500 per item if the price decreases within 60 days from the purchase date.
- Purchase security — covers eligible items for 90 days from purchase date for theft and damage, up to $10,000 per claim/$50,000 per cardholder.
- Extended warranty protection — extends the manufacturer’s warranty on eligible items for 1 additional year on manufacturer’s warranties of 3 years or less.
Note that this is a summary of benefits and protections. Please review the benefits guide for Capital One Visa Signature business cards for more information on coverage descriptions, terms and conditions, and a complete list of card benefits.
Everything Else You Need to Know
Capital One business cards are likely to be issued as a Visa Signature card, but you could also receive a Visa Platinum. Which card you receive will depend on your creditworthiness as determined by Capital One.
Although initially your personal credit may be used to determine approval, Capital One business cards report to business credit bureaus such as Experian, Dun and Bradstreet, and the Small Business Financial Exchange. This makes it possible to build your business credit via Capital One business cards.
Take your Capital One business card along when you travel as there are no foreign transaction fees charged on any of the Capital One business cards.
You’ll need excellent credit to get approved for most Capital One business credit cards and it’s important to select the one that gives you the most value.
If your business involves a lot of travel, for example, you may want to consider a premium business travel rewards card such as The Business Platinum Card® from American Express. The card comes with far more luxury travel benefits than any of the Capital One business cards.
If your business spends a lot on airline purchases, there may be better cards that offer travel benefits.
If your spending doesn’t fall into standard business bonus spending categories such as office supply stores, shipping, internet, phone, dining, or gas stations, you may fare well with a Capital One business card that offers 2x unlimited earnings on every purchase.
In many cases, a combination of more than 1 business credit card becomes an appropriate solution to maximize earnings, meet your redemption goals, and receive the desired benefits. If you’re not sure where to start, check out our business owner’s guide to points and miles for some guidance.
The information regarding the Capital One® Spark® Classic for Business was independently collected by Upgraded Points and not provided nor reviewed by the issuer.