Investors want to earn the highest percentage of returns on their money; a business that charges expenses to a credit card should have this same objective in mind. When business credit card holders fail to earn as much cash back as possible on their purchases, they leave money on the table.
Chase offers its Ink Cash Business Card to help companies and sole proprietors maximize the cash back they can earn from their regular business purchases.
- Sign-Up Bonus. Chase currently offers applicants a $250 sign-up bonus: $100 after your first purchase and $150 after spending $5,000 in the first three months.
- Cash Back. Businesses earn 5% cash back on office supplies, telephone services, and all cable expenses including Internet and television. Additionally, they earn 2% cash back on all purchases made at restaurants and gas stations. Charges eligible for extra cash back in these categories have a $25,000 annual spending limit. After they reach the limit, cardholders earn the standard return rate of 1% for all other purchases.
- Introductory APR. Cardholders receive a 0% introductory APR for 6 months.
- Standard Interest Rate. After the introductory rate expires, Chase applies the standard interest rate to the balance. That rate varies based on the Prime Rate, and will be equal to the Prime Rate plus 9.99%.
- Other Fees. There is no annual fee for this card. However, all charges processed outside of the United States incur a 3% foreign transaction fee.
- Exceptional Cash Back Rates. Companies can earn 5% cash back on office supplies, cell phone bills, and land line bills, even if their cable company provides the phone service. Also, the 2% cash back for fuel and restaurant purchases can add up very quickly for people who travel by car and entertain clients by dining out.
- Good Sign-Up Bonuses. $250 cash back is an excellent sign-up bonus. Many customers prefer the cash back to the alternative offer of 25,000 bonus points since bonus points can be difficult to redeem.
- No Annual Fee. Most cards with a cash back rate beyond 1% require an annual fee. This card breaks that mold by offering higher rates, with no fee.
- Introductory APR. Credit cards that offer introductory APRs typically have an annual fee. This card offers a 0% APR for 6 months, with no annual fee.
- Combination of Visa and MasterCard. The Chase Ink Cash card combines the purchasing power of Visa and MasterCard, and is accepted worldwide.
- Jot. Cardholders have access to the Jot app, which allows them to easily track business expenses and create expense reports on their smartphones.
- No Travel Perks. Many business credit cards offer benefits for travelers, especially frequent flyers. They offer luggage protection policies, airline lounge access, and of course, frequent flyer miles. By sticking to cash back, this card plays to its strengths, which lie in using the card for non-travel expenses.
- Foreign Transaction Fees. Chase charges a 3% foreign transaction fee for purchases made outside of the U.S., the highest foreign transaction fee in the industry.
- Less Than Stellar APR. While the APR received varies greatly based on your credit score, this card will never have a really low APR, when compared to other cards. As a rewards card, no one should expect the card to compete with other low interest credit cards that choose to offer competitive interest rates instead of attractive rewards offers.
- Spending Limit on High Return Categories. The highest cash back rates are only valid for a business’s first $25,000 of spending in each category. For many cardholders, this is sufficient, but as a business grows, a company could easily exceed those limits.
In a world where savings accounts only return 1% or 2% on your deposits each year, an instant 5% return on spending is a fantastic rate of return. The fact that businesses can enjoy these returns without any annual fees is also a strong argument for using this card. For companies and sole proprietors that do not need a travel rewards credit card, the Chase Ink Cash card can be a valuable product.
Do you have a Chase Ink Cash Business Card? How has it worked out for you and your business?