Chase released the New Business Card! Ink Business Premier(SM) Credit Card a few months ago but it has been available by invitation only up until now.
A nice couple of business owners who I know got the card by invitation, including myself, but now it is open to everyone!
The card is a great choice for many businesses, as I’ll explain in this post.
Earn unlimited 2% - 2.5% cashback
With the Ink Business Premier Card, you will earn unlimited 2% cashback on all purchases, and a whooping 2.5% cashback on purchases of $5,000 or more!
With the current welcome bonus on the Ink Business Premier Card, you can earn $1,000 after spending $10,000 within the first 3 months.
The annual fee for the Ink Business Premier is $195. It’s a bit of a steep annual fee for a card with no luxury benefits but I believe Chase is mainly looking to attract businesses that swipe a lot and will not mind paying the $195 fee in order to get a higher amount of cashback.
Why is it worth it for Chase to offer such a high rate of cashback?
In my interview with David Gold this past summer (who is the one who actually designed the Chase Ultimate Rewards program), I asked him about this card and why it’s worth it for Chase. He explained to me that there are several factors involved. One is that banks look to attract a certain clientele to this card and then cross sell them other products. The banks also have statistics that show that the transactions of $5k or more usually happen at merchants who pay a higher interchange fee (high-risk merchants pay as much as 10% interchange).
They are also making money with the annual fee and interest with the Pay Over Time feature. So I’m not Chase CFO but I guess they have it figured out…
Compared to other 2% cashback business credit cards
Chase is not the first to introduce a 2% cashback business credit card. Both Amex and Capital One already have such options.
Amex has The Blue Business Plus Credit Card from American Express, and the American Express Blue Business Cash Card, which earns 2 points or 2% cashback (respectively) on all purchases. Plus, the cards have no annual fee.
But the big drawback on the Amex cards is that the 2 points and 2% cashback are capped at the first $50k you swipe per calendar year. So if the Amex cards will work for your business depends on how much your business spends per year; if it tops $50k annually then it’s not the best choice.
The bigger competition to the Ink Business Premier Card is the Capital One Spark Cash Plus. Its $150 annual fee is a bit less than the $195 on the Ink Business Premier and it also offers unlimited 2% cashback. However, the Spark doesn’t have the 2.5% cashback on swipes of $5k or more. So if your business makes a lot of purchases of $5,000 or more, then the Ink Business Premier Card is a better choice since you would get 2.5% cashback with the Ink Business Premier instead of 2% cashback with the Spark.
There is one benefit that the Capital One Spark has better than the Ink Business Premier and that is the option to transfer points. If you have a Capital One Miles card, such as the Capital One Venture X Rewards Credit Card, you could transfer your points from your Capital One Spark Cash Plus to the Miles card and then transfer from there to airline transfer partners.
But currently, the only way to redeem your points for the Ink Business Premier Card is through cashback.
(Another option that might work well for some is the Business Advantage Unlimited Cash Rewards Mastercard® credit card ($0). It earns 1.5% cashback on all purchases plus you can earn another 75% on all purchases (a total of 2.62%) when you are a Bank Of America Business Platinum Honors member. You become a Business Platinum Honors member when you have $100,000 or more in your Bank of America accounts. So if this card will work for you depends if you have $100k available to sit in your account.)
Your balance on the Ink Premier Card needs to paid in full
Unlike other Ink credit cards which allow you to carry your balance from month to month, with the Ink Business Premier you need to pay your balance in full each month (except for some purchases that are eligible for Flex For Business which are allowed to be carried from month to month).
Nice credit limits are being approved!
Chase is being extremely generous with the credit limits being approved on the Ink Business Premier. Many got credit limits of $75k or even higher.
Chase also enables you to transfer your existing credit limits from any of your existing Chase business cards to the new Ink Business Premier (but you cannot transfer from the Ink Business Premier to other Chase business cards. It’s a one way street).
What are the Ink Premier benefits
The Ink Business Premier does not come with any luxury benefits but it does have a full suite of basic benefits and protections. Here are the details.
Auto Rental Collision Insurance
Primary coverage on rentals for business purposes and on rentals outside your country of residence, and secondary coverage on rentals for personal purposes. Coverage is for rentals up to 31 days.
Trip Cancellation Insurance
Coverage for canceled or interrupted travel due to an unforeseen medical emergency etc. Max $5,000 per person, max $10,000 per trip for non-refundable travel expenses including flight tickets, hotels, and more.
Travel Accident Insurance
Get coverage if you, G-d forbid, die in an accident while traveling or lose a limb, sight, speech, or hearing (on common carriers). Receive up to $500,000 in compensation.
Lost Luggage Reimbursement
Get up to $3,000 per person per trip for lost, stolen, or damaged luggage.
Trip Delay Reimbursement
If your flight is delayed for 12+ hours, you can claim up to $500 per person to cover expenses like meals, lodging, toiletries, medication, and other personal use items.
Extended Warranty Protection
Get your original manufacturer’s warranty time matched (up to a year). (Will only cover if the original warranty is for 3 years or less). Max $10,000 per claim, $50,000 per account.
Cell Phone Protection
Get reimbursed for up to $1,000 per claim (with a $100 deductible) if your cell phone breaks or gets lost or stolen. To activate coverage, you need to pay your monthly cell phone bill with your Ink Premium credit card. Max 3 claims per year.
Get refunded if your purchase is damaged, lost, or stolen, up to 120 days from the date of purchase. Max $10,000 per claim, $50,000 per account.
Luggage delay insurance
If your baggage is delayed for 6+ hours, you can claim up to $100 per day to cover expenses like toiletries & clothing, for up to 5 days.
Get roadside service calls dispatched for free. You will have to pay a set service fee per call.
If your business has a lot of transactions of $5k or more, then the Ink Business Premier will be a great choice for your business. It offers the highest cashback rate than any other credit card (expect for the Business Advantage Unlimited Cash Rewards Mastercard® if you have $100k in your Bank Of America bank account).