Ink Business Preferred® Credit Card
Rating
Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases-with no limit to the amount you can earn.
The Chase Ink Business Preferred® Credit Card stands out in the competitive business credit card market with its robust rewards structure and comprehensive benefits. This card is designed to meet the diverse needs of small to medium-sized businesses, potentially offering significant value for those who can maximize its features.
Rewards Structure
- 3x points on the first $150,000 spent annually on:
- Travel
- Shipping purchases
- Internet, cable, and phone services
- Advertising on social media and search engines
- 1x points on all other purchases
This reward structure is exceptional for many small businesses. The 3x categories are chosen to align with everyday business expenses, potentially supercharging your points earning.
With the generous $150,000 annual cap on 3x earnings, this limit strikes an excellent balance for small to medium-sized businesses – high enough to accommodate substantial spending yet not so high as to be out of reach for most entrepreneurs.
Rewards Ecosystem
The true power of this card lies in its integration with Chase's Ultimate Rewards program. Here's why it's so valuable:
- Flexibility: Points can be redeemed for travel, cash back, or transferred to partners.
- Transfer Partners: The ability to transfer points at a 1:1 ratio to various airline and hotel programs is a game-changer for value-conscious business travelers.
- Travel Portal Bonus: Points are worth 25% more when redeemed for travel through Chase's portal.
For a business owner who travels frequently, this flexibility can translate into significant savings or luxury travel experiences that might otherwise be out of reach.
Annual Fee
The Chase Ink Business Preferred Credit Card has an annual fee. Key points to consider:
- Charged yearly on the account anniversary
- Covers additional employee cards at no extra cost
- May be tax-deductible as a business expense (consult a tax professional)
Businesses should weigh their spending in bonus categories and use card benefits against this fee to determine its value for their situation.
Additional Benefits
- Cell phone protection
- No foreign transaction fees
- Trip cancellation/interruption insurance
- Purchase protection
These additional perks add layers of value that go beyond mere points earning. Cell phone protection, in particular, can be a crucial benefit for many businesses. This coverage provides peace of mind in a world where phones are essential business tools.
Another standout feature for businesses with international dealings is the lack of foreign transaction fees. Whether a company conducts meetings abroad or purchases from overseas suppliers, this can lead to substantial savings over time. These savings can accumulate significantly for businesses that frequently engage in international transactions, potentially offsetting a portion of the card's annual fee.
Who Should Consider This Card?
This card is particularly well-suited for:
- Small to medium-sized businesses with significant spending in the bonus categories
- Business owners who travel frequently
- Entrepreneurs who value flexibility in their rewards program
- Those who can take advantage of the Ultimate Rewards ecosystem
However, it might not be the best fit for:
- Very small businesses or sole proprietors with limited expenses
- Those who prefer simple cash back rewards
- Businesses that don't spend much in the bonus categories
Conclusion
The Chase Ink Business Preferred Credit Card offers a compelling value proposition for many businesses. Its strengths include:
- A well-designed rewards structure targeting everyday business expenses
- Integration with the versatile Chase Travel℠ program
- A suite of business-oriented benefits
While the card's suitability depends on individual business needs and spending patterns, it can be particularly valuable for:
- Businesses with significant expenditures in the bonus categories
- Companies that frequently engage in travel
- Entrepreneurs who appreciate flexible reward options
Business owners should carefully evaluate their spending habits and financial goals to determine if this card aligns with their business strategy. For those who can maximize its features, the Chase Ink Business Preferred® Credit Card has the potential to be a powerful financial tool.
Pros
The card offers robust rewards on common business expenses: The elevated earning rate on categories like travel, shipping, and advertising allows businesses to accumulate points quickly on their regular spending.
The rewards program provides flexible redemption options: Points can be used for travel through the issuer's portal or transferred to airline and hotel partners, potentially allowing for high-value redemptions.
The card comes with valuable travel and purchase protections: Additional benefits like cell phone protection and travel insurance can potentially save businesses money and provide peace of mind.
Cons
The card carries an annual fee: Businesses need to ensure their spending and use of benefits justify this cost, which might not be the case for smaller enterprises or those with limited expenses in bonus categories.
Cap on elevated earnings in bonus categories: Once the limit is reached, the basic earning rate might be less competitive compared to other options in the market, potentially limiting value for larger businesses.
Optimizing rewards can be complex: Getting the most value from the rewards program often requires time and effort to understand transfer partners and redemption strategies, which might not suit business owners looking for straightforward cash back.
