Just because you’re a small business owner, it doesn’t mean you don’t have big expenses. So why not take advantage and earn points on the purchases you make to redeem for rewards that’ll make life easier for you? With the Chase Ink Business PreferredSM Card, you can get points for everything you spend and more in certain business categories where you tend to do the most spending.
Plus, if you’re thinking of expanding your business, this credit card can help cover those costs as well any unexpected business expenses. It does come with a $95 annual fee but offers one of the best bonuses for new cardholders. Is it worth it? See if the Ink Business PreferredSM card is the right card for you business.
|Earn 80,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.||$95 annual fee.|
|3x points on telecommunications (internet, phone and cable), shipping, travel and advertising on social media and search engines, on up to $150,000 in combined spending annually & 1x point on all other purchases.||No introductory APR offer.|
|Travel, purchase, and cell phone protection benefits.|
|No foreign transaction fee.|
Chase Ink Business Preferred Benefits
The Chase Ink Business PreferredSM Card is the go-to card for these reasons:
- A big bonus. Earn 80,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. That’s $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
- Earn more points. Earn 3x points on the first $150,000 spent in combined purchases on travel, shipping, Internet, cable and phone services, and advertising on with social media sites and search engines each year. All other purchases earn 1x point with no limit to how much you can earn.
- Travel discounts. Points are worth 25% more when redeeming for travel through Chase Ultimate Rewards®. Plus, get 20% off travel redemption, including airfare, hotels, car rentals and cruises.
- Transfer points at a 1:1 ratio to Chase’s airline and hotel transfer partners. If you frequently fly or stay with their partners, the Ink Business Preferred card can earn you free flights and stays fast.
- No foreign transaction fee. By eliminating the 3% foreign transaction fee that many other credit cards charge, the Ink Business Preferred card comes in handy when you’re using it when visiting important suppliers and clients out of the country.
- Free employee cards for no additional fees. The rewards program will apply to those cards as well so you can earn rewards faster. Minimize credit card abuse by setting a spending limit for each employee card. You’ll also be automatically notified whenever an employee makes a purchase.
- Protection benefits. Get travel protection, purchase protection, and cell phone protection with your Ink Business Preferred card.
- Auto rental collision damage waiver. Decline the rental company’s collision insurance and charge the entire rental cost to your card. Receive primary coverage for theft and collision damage for most cars rented for business purposes. Reimbursement is up to the actual cash value of the vehicle.
Chase Ink Business Preferred Pitfalls
You may not like the Chase Ink Business PreferredSM Card due to these reasons:
- The annual fee. There’s a $95 annual fee. These annual fees are common for rewards cards, such as the Chase Sapphire Preferred® Card, but if you’re one of those cardholders who prefer credit cards that don’t have them at all or if you’re not a big spender to justify the annual fee, this may not be the best card for you. Depending on your spending patterns, the annual fee may be fair for all the rewards and benefits you get in return.
- No Introductory APR. The Ink Business Preferred card doesn’t offer an introductory APR offer. This may not be ideal for businesses that haven’t already established a steady cash flow and may need occasional breathing room.
- A balance transfer fee. Many credit cards only charge a 3% balance transfer fee. However, with the Ink Business Preferred card, you’ll pay either $5 or 5% of the amount of each transfer, whichever is greater.
- Bonus categories. It’s a double-edged sword. Depending on what your business is for, the bonus 3x point categories will probably apply to most modern small businesses. All other purchases are worth 1x point. If your business doesn’t spend much on any of these things, you may be better off with a different card.
Although the Chase Ink Business PreferredSM Card isn’t specifically aimed towards redeeming travel rewards, that doesn’t mean you can’t take advantage of the rewards and travel benefits. Take a well deserved vacation with your hard earned points. Otherwise, use them for business trips.
- Redemption: Redeem your points through Chase Ultimate Rewards® for travel, gift cards, cash back, and more. If you redeem through Chase Ultimate Rewards® for travel, you’ll get 20% off airfare, hotels, car rentals, and cruises.
- 1:1 Points Transfer: Get more value out of your points. Transfer points to participating frequent travel programs with no transfer fees at full 1:1 value. Airline transfer partners include Southwest Airlines Rapid Rewards, United Airlines MileagePlus, British Airways Executive Club, Flying Blue AIR FRANCE KLM, Korean Air SKYPASS, Singapore Airlines KrisFlyer, Virgin Atlantic Flying Club. Hotel partners include Marriott, Hyatt, IHG, and The Ritz-Carlton.
- Earn even more points for travel by using your Chase points from your other Chase credit cards. Consider maximizing your rewards by supplementing it with the Chase Freedom® Card. The Freedom card gives you 5% cash back, up to $1,500, in combined purchases in bonus categories each quarter. Plus, get unlimited 1% cash back on all other purchases.
- If you don’t want bonus categories to keep up with, the Chase Freedom Unlimited® Card offers a flat 1.5% cash back on all your purchases. Use either of these two cards with your Ink Business Preferred card, then pool your reward points from both cards, and redeem.
- Accepted Worldwide: As a Visa credit card, the Ink Business Preferred is accepted worldwide. If you travel overseas, this pairs excellently with your $0 foreign transaction fee.
- Smartchip: For international travelers, the Ink Business Preferred has Chip with Signature technology to improve the security of your card and to reduce fraud.
When earning points with the Chase Ink Business PreferredSM Card, you are given bonus categories that can be quite profitable if you’re a small business owner. You’ll earn 3x points on the first $150,000 spent in combined purchases in the following categories:
- Travel, including airfare, hotels, rental cards, train tickets and taxis
- Shipping purchases
- Internet, cable and phone services
- Advertising purchases made with social media sites and search engines
The $150,000 threshold is based on your account anniversary year, so it’ll reset each year when you renew your card. If you max out these categories by spending the full $150,000, you’ll get a total of 450,000 Ultimate Rewards points. This is worth $5,625 when redeeming for travel through Chase Ultimate Rewards®.
Once you pass the mark, the purchases you make in those categories will drop down to 1x point. Even then, you’re still getting a higher return rate than what you’d normally get with a similar small business card. Not too bad for a card with a $95 annual fee. Plus, the bonus categories are more aligned towards growing your business.
Generally, the more you advertise, the more your business can grow. Likewise, the more you spend on traveling to visit your suppliers and clients, the more opportunities your business has to grow as well.
When you use your Chase Ink Business PreferredSM Card to make travel arrangements, you’ll get a variety of card benefits as highlighted:
- Travel protection. The Chase Ink Business CashSM Card has got you covered with various benefits and insurances, so you can go on your business trip and travel with ease and a peace of mind. Plus, your card comes with Chip with Signature technology to improve the security of your card and to reduce fraud.
- Trip Cancellation/Trip Interruption Insurance: If you have to cancel or cut a trip short due to a covered circumstance, such as an illness or severe weather, you can be reimbursed up to $5,000 per trip for non-refundable travel expenses such as flights, hotels, and tours.
- Trip Delay Reimbursement: If your flight is delayed more than 12 hours or you need to stay overnight to wait for another flight, you can be reimbursed for expenses. This applies to things like meals and hotel room, for up to $500 per ticket with trip delay reimbursement.
- Baggage Delay Insurance: If your baggage is delayed for over 6 hours, you can be reimbursed for necessities, like toiletries and clothing, up to $100 a day for 5 days.
- Lost Luggage Reimbursement: If you or anyone in your immediately family has their checked or carry-on luggage lost or damaged by the carrier, you are covered up to $3,000 per passenger.
Purchase Protection and Extended Warranty
In addition to travel benefits, you’ll also receive some shopping benefits:
- Purchase Protection: Purchasing a fancy new laptop? No worries. Your new, eligible purchases with the Ink Business Cash card are covered against damage or theft for up to 120 days. This is available for up to $10,000 per claim for a maximum of $50,000 per account.
- Extended Warranty Protection: If you purchase a product in the U.S., you get an additional year of warranty on eligible products if the U.S. manufacturer’s warranty is 3 years or less.
- Return Protection: If you want to return something but the store won’t take it back, you can be reimbursed for eligible items within 90 days of purchase, up to $500 per item and $1,000 per year.
Cell Phone Protection
The most unique feature of the Chase Ink Business PreferredSM Card is that it offers cell phone protection. If you pay your cell phone bills with this card, you get insurance against cell phone damage or theft. That means, if your cell phone gets damaged or stolen, it may be covered if the phone isn’t listed on any insurance policy from the provider or on your personal home/valuable property insurance.
Note that the coverage is only for theft or damage, not for lost phones, accessories, pre-paid phones, cosmetic damage, and some other exclusions. You’ll need a police report filed within 48 hours if a phone was stolen. Or if your phone is damaged, provide an evaluation from a phone repair service. You must also file a claim to Chase within 60 days of the incident. Provide all required documentation for the claim within 90 days of the incident in order to avoid claim denial. The protection is available for you and your employees listed on your phone bill. Unfortunately, you can’t try to include those in your family plan.
Keep in mind that it’s subject to a $100 deductible per claim. Plus, there’s a maximum of 3 claims per 12-month period. The maximum benefit limit is $600 per claim and $1,800 per 12-month period. In addition, the $600 reimbursement goes towards the purchase of a new phone only. You will be reimbursed up to $600 or the price of the new phone, whichever is less.
Not Ready for the Annual Fee?
Here’s how the Chase Ink Business PreferredSM Card stacks up against the SimplyCash® Plus Business Card from American Express, another contender for small business who may not have established a cash flow yet or who don’t have lots of expenses.
The Ink Business Preferred® Credit Card offers 100k bonus points after you spend $15,000 on purchases in the first 3 months from account opening. That's $1,250 toward travel when redeemed through Chase Ultimate Rewards®.
You'll earn 3 points per $1 on the first $150,000 spent on travel and select business categories each account anniversary year; 1 point per $1 on all other purchases - with no limit to the amount you can earn. Furthermore, points are worth 25% more when you redeem for travel through Chase Ultimate Rewards.
This card does come with a $95 annual fee but does not have any foreign transaction fees.
With the American Express Blue Business CashTM Card, you'll earn a $250 statement credit after you make $3,000 in purchases on your Card in your first 3 months.
0.0% intro APR on purchases for 12 months from the date of account opening, then a variable rate, 16.99% - 24.99%, based on your creditworthiness and other factors as determined at the time of account opening.
Plus, earn 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%. Cash back earned is automatically credited to your statement.
From workflow to inventory to floor plans, your business is constantly changing. That’s why you’ve got the power to spend beyond your credit limit with Expanded Buying Power§.Just remember, the amount you can spend above your credit limit is not unlimited. It adjusts with your use of the Card, your payment history, credit record, financial resources known to American Express and other factors.
This card comes with no annual fee (See Rates & Fees).
The Chase Ink Business PreferredSM Card is an excellent business credit card, with one of the best early spend bonuses available. Companies that spend a lot on travel, shipping, internet, cable, and phone services and social media/search engine advertising should consider applying.
However, if you prefer getting a card with no annual fee, there are other options to consider. The main drawback of the card is that it doesn’t cover restaurants and dining expenses. This may be substantial for some small business owners. Get around that by pairing it up with the Chase Sapphire Preferred® Card to earn 2x points on restaurant dining and pool your points together.
With the sign-up bonus and a high point-earning cap, the Ink Business Preferred card is definitely a great option for small business owners who want to earn rewards for their spending.
Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author’s alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through the credit card issuer Affiliate Program.