Limited-time offer. The Capital One Spark Cash for Business is a rewards business card offering a big early spend bonus offer in addition to ongoing 2% cash back rewards. They’ve just added a limited-time offer for businesses with sizable spending, boosting the total bonus value to $2,000. Here are the highlights:
- Unlimited 2% cash back on all purchases.
- Up to $2,000 cash bonus. First, earn a $500 cash bonus when you spend $5,000 on purchases within the first 3 months. In addition, you can earn another $1,500 cash bonus if you spend $50,000 in the first 6 months. This is a limited-time offer.
- $0 annual fee for the first year, then $95 annual fee after that.
- Cash back rewards don’t expire as long as your account is open.
- No foreign transaction fees.
- Free additional employee cards.
Consider that if you meet the $5,000 spending requirement within 3 months, you will end up with $500 + $100 from 2% cash back – that’s $600 on $5,000 spending (12% cash back). If you do meet the $50,000 spending requirement, you’ll earn the $2,000 cash bonus from the limited-time offer and 2% cash back for another $1,000. That is a total of $3,000, amounting to a rate of 6% cash back on $50,000.
Note that “Existing or previous Accountholders may not be eligible for this one-time bonus.” For comparison, there is also a Spark Select for Business and Spark Classic that are different cards with lower sign-up bonuses but no annual fee.
The 2% cash back for all purchases is a strong rewards structure, and you get no annual fee during the first year as well. From the second year onward, you’ll have to weigh that against the $95 annual fee after the first year. The math says that you would have to spend more than $19,000 every year ($1,583 a month) to make the 2% back and $95 annual fee (Spark Cash) pay out more rewards than 1.5% cash back and no annual fee (Spark Cash Select).
Here is some info taken from the Terms and Conditions regarding rewards cash back redemptions:
How do I redeem my rewards?
You can get your cash back upon request in the form of a statement credit or a check. You can also set up an automatic redemption preference; options include: (1) at a set time each calendar year or (2) when a specific threshold ($25, $50, $100 or $200) has been reached. Just go online to capitalone.com or contact our Rewards Center. You can also redeem for credits for previous purchases, gift cards, and more. Rates for these redemption options may vary and are subject to change without notice.
Alternatively, the Capital One Spark® Miles for Business has a limited-time offer now up to 200,000 miles – redeemable for $2,000 statement credit towards travel. That is broken down into 50,000 miles when you spend $5,000 in the first 3 months, and then another 150,000 miles when you spend $50,000 within the first 6 months. The travel can be booked directly through airlines and hotels, and there are no blackout dates or award seat limits to worry about. $0 annual fee for the first year, then $95 annual fee after that. No foreign transaction fees. Similar to the offer above, the Spark Miles offers 2 miles per dollar with the $95 annual fee but there is also a Spark Miles Select for Business that offers 1.5 miles per dollar with no annual fee.
Capital One now allows you to transfer your “miles” into select airline miles programs as well, on a 2:1.5 ratio (ex. 20,000 Capital One miles = 15,000 Air Canada Aeroplan miles). Here are the 12 transfer partners:
- Air Canada Aeroplan
- Air France/KLM
- Cathay Pacific
Unless you know how to leverage one of these international airline miles programs, I would prefer earning cash rewards over the “miles”, since these Capital One “miles” only get their maximum value when redeemed against a travel purchase.
If you are looking for a comparison with other strong business cards, check out my updated list of Top 10 Best Small Business Credit Card Bonus Offers.
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