Is the Chase Ink Business Preferred Worth Its Annual Fee? - NerdWallet

Is the Chase Ink Business Preferred Worth Its Annual Fee? - NerdWallet


Is the Chase Ink Business Preferred Worth Its Annual Fee? - NerdWallet

Posted: 26 Nov 2019 12:00 AM PST

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn't influence our evaluations. Our opinions are our own.

Finding the right credit card can be a challenge, and it might be even more difficult if you're trying to pick the right card for your business. You have to answer questions like, "Why do I need a new card?" or "What benefits are important to me?"

Whether you're a small-business owner or a freelancer, business expenses add up, and there are cards available that offer rewarding benefits and points-earning potential on everyday purchases targeted toward businesses. The Ink Business Preferred® Credit Card is one of these cards. But with a $95 annual fee, is it worth the cost?

It's worth it if:

1. You have typical small-business expenses

The Ink Business Preferred® Credit Card was designed to be used for typical business expenses. You'll earn 3 Ultimate Rewards® points per $1 on the first $150,000 spent on combined travel, shipping purchases, internet, cable, phone services and social media/search engine advertising each account anniversary year.

If any of those are regular categories you spend money on for your small business, check your budget and find out how much you're spending. The ability to earn 3 points per $1 can add up quickly, and Ultimate Rewards® points can be redeemed for travel with nearly any hotel or airline or for cash back.

» Learn more: Who can apply for a small-business credit card?

2. You travel

If you travel for your business, the Ink Business Preferred® Credit Card is a solid option. Maybe you don't have any of the other expenses above, but the ability to earn 3 Ultimate Rewards® points per $1 on up to $150,000 in annual spending on travel can be extremely rewarding.

If you have to rent a car for business purchases, you can also save money by declining the car rental company's additional insurance and using protection through your credit card instead. You'll also benefit from trip cancellation and interruption coverage and roadside dispatch. When you redeem your Ultimate Rewards® points for travel through the Chase travel portal, they're worth 1.25 cents each, and you can also take advantage of 1:1 transfers to Chase's partner hotels and airlines like Hyatt and United for even more flexibility.

If you travel but you're not set on this card, these are some of the other great travel credit cards currently available.

3. You're providing a credit card to employees

Do you have a manager or trusted employee who's making work purchases? You can easily add an employee card to your account at no additional cost. That's another card building up points for your account. You can adjust individual spending limits for each employee card, providing more leeway for more senior or more trusted employees. Just remember, this is still your account and you're responsible for all of the charges made by the cards.

» Learn more: Should I get small-business credit cards for my employees?

4. You have big purchases coming up

The Ink Business Preferred® Credit Card has one of the most valuable sign-up bonuses of any business credit card: New Offer! Earn 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®.

As a small business with expenses, that might be an easy spending goal to reach — but if your monthly expenses are low, this could the time to upgrade something big for your business and earn some additional points.

It's not worth it if:

1. You don't want to deal with points

Chase has several cards under the Ink label, and the other Ink business cards are good options too. While you can convert your Ultimate Rewards® points to cash, if you're primarily interested in cash back for purchases, you might want to consider the Ink Business Unlimited℠ Credit Card or the Ink Business Cash℠ Credit Card — neither of which has an annual fee.

Even if you're interested in points, think about what you want to exchange those points for. Chase Ultimate Rewards® points can be used toward purchases at Amazon.com, redeemed for travel credit, or used to acquire gift cards, but the best way to get value out of the Ink Business Preferred® Credit Card is to make use of Chase Ultimate Rewards® transfer partners or the 25% bonus your points are worth when redeemed through Chase Travel. If you're not using these benefits, it may not be worth paying the $95 annual fee.

2. You frequently entertain clients

If a major part of your business is schmoozing clients, this may not be the card for you. There are no bonuses for spending on food, drinks or entertainment. Other cards do provide bonus points in those areas, so look into those options if dining and entertainment are major expenses for your business.

3. You have minimal expenses

Some small businesses or freelancers can run lean. If your costs are low, it sounds like you're doing something right. But the Ink Business Preferred® Credit Card comes with a $95 annual fee. If you aren't spending much on shipping, internet or travel, then the 3 points per $1 spent bonus won't do much for you.

With few expenses, it'll take longer to earn back the $95 fee in points, and that could mean you're paying for something you aren't using. Instead, consider a card like the Ink Business Unlimited℠ Credit Card that earns 1.5 points per $1 spent on all purchases and doesn't have an annual fee.

» Learn more: 8 best no-annual-fee credit cards of 2019

The bottom line

For some businesses, the Ink Business Preferred® Credit Card will pay for itself in no time at all. But if you aren't spending on travel, shipping, internet, cable, phone or search engine/social media advertising (or if you don't want to deal with redeeming points), this card may not be for you.

How to maximize your rewards

You want a travel credit card that prioritizes what's important to you. Here are our picks for the best travel credit cards of 2020, including those best for:

Planning a trip? Check out these articles for more inspiration and advice:
Find the best travel credit card for you
Who can apply for a small business credit card?
NerdWallet's best small business credit cards

Get 80,000 Bonus Points With The Chase Ink Business Preferred Card - Simple Flying

Posted: 24 Jul 2019 12:00 AM PDT

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The Ink Business Preferred℠ Credit Card is a great credit card from Chase, designed for business owners. The huge sign up bonus (worth over $1000) is of course a big appeal, but there are plenty more great benefits with this card. This article reviews the card and its benefits, and looks at who will get the most out of it.

Chase Ink Business Preferred Card
The Chase Ink Business Preferred Card. Image: Simple Flying

Card basics – costs and who it is for

The Ink Business Preferred℠ Credit Card is designed for small business owners. Spending requirements for the bonus are higher than most personal cards, and many of the card benefits are tailored to the small business.  There is no requirement, however, to have a registered company in order to apply for the card – is it fine to be self-employed, contracting or freelancing.

There is an annual fee of $95 – competitive against other mid-range credit cards. In our opinion, as long as you meet the spending requirement for the sign up bonus and spend enough in business categories which offer better rewards, this is well worth it.

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Chase Ink Business Preferred Card
Chase Ink Business Preferred Card – great earning for small businesses. Image: Simple Flying

There is no introductory discount for annual fee or lower APR rates. Standard APR offered for the card is between 17.99 per cent and 22.99 per cent.

80,000 Ultimate Rewards points sign up bonus – one of the best available

The sign up bonus offered with the Ink Business Preferred℠ Credit Card is, quite rightly, one of the major appeals of the card. You will earn a massive 80,000 Ultimate Rewards points when you spend $5,000 on purchases within the first three months. The spending target is higher than many other cards – but remember that this card is designed to be used for business expenses, and potentially by multiple company employees.

This is one of the best bonuses on offer anywhere. 80,000 points are worth $1,000 if redeemed for travel through the Chase booking portal. And potentially much more than this if transferred to airline partners and used for flight rewards.

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Chase Ink Business Preferred sign up bonus
The Chase Ink Business Preferred sign up bonus. Image: Chase

No foreign exchange fees

Whilst this is a card designed for businesses rather than the frequent traveler, it still offers some great benefits when you do travel. High up on the list is the inclusion of no foreign transaction fees on purchases overseas (this does not apply to ATM withdrawals).

This a great money saver for business travel expenses, and in our opinion is an essential benefit for anyone who will travel. Many other cards add a fee of around three per cent to such transactions – a costly extra.

Paris scene
Save with no foreign transaction fees when you travel for business or pleasure. Photo: Wikimedia Commons (user Taxiarchos228)

Earning Chase Ultimate Rewards points

It's not just the sign up bonus that offers plenty of points; the ongoing earning rate is excellent too. This is clearly tailored to the small business and can be hugely rewarding for business expenses in the right categories.

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All earning is in the Chase Ultimate Rewards points scheme. This is one of our favorite financial rewards schemes – long established with a solid network of partners and great high-value redemption options.

Chase Ultimate Rewards
Chase Ultimate Rewards. Image: Chase

All spending on the card, both in the US and overseas, earns points at the same rate:

  • Three points per dollar are earned for spending in certain categories – including travel, shipping, online advertising purchases made with social media sites and search engines, and internet/phone services. There is a total limit of up to $150,000 per year (across all categories) for this.
  • All other spending earns one point per dollar, with no limit.
Chase Ink Business Preferred triple earning
Earn three points per dollar on several areas of business expenses. Image: Chase

Spending Ultimate Rewards points

As the card earns Chase Ultimate Rewards Points, it offers full access to the redemption options of this scheme. See our guide to redeeming Chase Ultimate Rewards points for more details and ideas. Ways to spend include:

  • Converting to cashback as a statement credit, at a rate of one cent per point. This is lower than using points for travel so is not recommended. It is a useful option, though, if you really have no travel expenses.
  • Points can be redeemed for travel bookings through the Chase travel portal, at a rate of 1.25 cents per point. This is a standard style travel booking portal and offers a wide range of airfares and hotels.
  • Transferring points to one of nine airlines and three hotel partners, for a potentially higher value.
British Airways A321
Transfer and use points with nine airline partners – including British Airways. Photo: British Airways
Using points for airline awards

For many people, the best value use of Chase Ultimate Rewards points lies in transferring them to other programs. This is one of the main strengths of Ultimate Rewards and there are plenty of options!

There are currently nine airline transfer partners:

  • Aer Lingus AerClub
  • Air France/KLM Flying Blue
  • British Airways Executive Club
  • Iberia Airlines Iberia Plus
  • JetBlue TrueBlue
  • Singapore Airlines KrisFlyer
  • Southwest Airlines Rapid Rewards
  • United Airlines MileagePlus
  • Virgin Atlantic Flying Club

And three hotel transfer partners:

  • IHG Rewards Club
  • Hyatt, World of Hyatt
  • Marriott Bonvoy

All points transfer at an excellent rate of 1:1. This is better than with some other programs which offer lower transfer rates.

Once transferred, points can be used for flight or hotel reward bookings within any of these programs – opening up a lot of possibilities and some great chances to get good value compared to equivalent cash prices. For a more complete look at transfers and some ideas of the possibilities, see our guide to redeeming points.

Some of our favorite options are using points for premium cabin flight awards. Singapore Airlines KrisFlyer, for example, offers hard to get access to their first-class seats – one of the most luxurious ways to fly. And British Airways Executive Club is a great option for its distance-based award pricing on all OneWorld airlines. This offers some very good value awards on short and medium-haul international routes or expensive domestic US flight routes booked with American Airlines.

Singapore Airlines first class
Starting at 132,000 miles with KrisFlyer, travel in First Class with Singapore Airlines between New York and Singapore. Photo: Singapore Airlines

Cards for company employees

The Ink Business Preferred℠ Credit Card is a card designed for small businesses. It makes sense therefore that it is possible to add authorized employees as additional cardholders. There is no charge to add employees and the main account owner is able to set spending limits and monitor spending.

Their spending will attract the same rewards and benefits, all linked to the same account. This is a great way to build up more points in the account, offering a greater choice of rewards.

Included mobile phone cover

One main business-focused benefit not seen with many other Chase cards is the inclusion of cell phone protection. This will cover theft or damage to employee's mobile phones, up to a limit of $600 per claim (and a maximum of three claims per year, with $100 excess per claim). For this to apply, the cell phone bill needs to be paid using the card.

Mobile Phone
Free cover for mobile phones when the bill is paid with the card. Photo: Pixabay

Collision Damage Waiver cover included when you rent cars

Whenever a cardholder rents a car with the Ink Business Preferred℠ Credit Card, at home or overseas, they will receive free Collision Damage Waiver. This covers theft or damage of rental vehicles and means you can decline any such additional insurance offered by the rental company. When renting for business use, the cover is primary – so will apply before any other insurance cover that you may have.

Avis car rental
Get Collision Damage Waiver included whenever you rent. Image: Avis

Basic trip cancellation/interruption insurance included

The Ink Business Preferred℠ Credit Card provides cover for trip cancellation or interruptions. This will cover up to $5,000 of pre-paid costs if a trip is canceled or cut short, for several reasons – including sickness and severe weather.

This is useful cover when employees are traveling for business, allowing you to plan travel in advance safely. It is not as extensive though as the cover provided by other cards, such as the Chase Sapphire Preferred or Reserve. These offer more cover for the individual traveler such as luggage and accident insurance.

Protection for purchases

In line with most other Chase cards the Ink Business Preferred℠ Credit Card offers protection on purchases. This is especially valuable when you could be using the card for expensive business equipment.

It offers additional purchase protection on new purchases for 120 days, covering damage and theft. The cover is up to a limit of $10,000 per claim (and $50,000 per account), making this a great card for larger purchases.

Extended warranty is also offered on all eligible purchases with the card. This extends the original warranty of a US manufacturer by one additional year, for original warranties of three years or less.

 Chase Ink Business Preferred card
Get travel and purchase protection for all cardholders when they use the Chase Ink Business Preferred card. Image: Simple Flying

Final Thoughts

The Ink Business Preferred℠ Credit Card is an excellent card for small businesses. The high welcome bonus and earnings for business expenses are very rewarding – and more than justify the annual fee. This works for businesses of any size, as long as you will meet the initial spending requirement for the bonus!

When considering the card, look as well at how well your business can use the included benefits! There is great value to be had in auto, travel and mobile phone cover if these apply to your business. And likewise, points earning will grow dramatically if your business spends in the bonus categories.

Individual or self-employed users though should think carefully whether they will get the maximum benefit from the points earning categories and the business-focused perks. Travelers as well may find more value in other cards that offer better travel-related benefits – such as no foreign exchange fees, Global Entry credit and other hotel and airline-specific benefits. There is no reason though not to combine this with other cards – take a look at some of the best from Chase here.

Ink Business Preferred Hikes Bonus to 100000 Points - NerdWallet

Posted: 17 Mar 2020 12:00 AM PDT

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn't influence our evaluations. Our opinions are our own.

The Ink Business Preferred® Credit Card is now offering one of the most massive sign-up bonuses in wide availability, though you'll have to spend more — way more — to snag it.

For a limited time, new cardholders will earn the following bonus, phrased this way by the issuer: "New Offer! Earn 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®."

That's a higher value than the previous sign-up bonus, which was already impressive at 80,000 points and worth $1,000 through Chase Ultimate Rewards®. However, the required spending threshold to earn the new bonus is much, much steeper: $15,000 versus $5,000, and over the same time period.

» MORE: How to maximize the bonus on the Ink Business Preferred® Credit Card

The card's annual fee is still $95, and its ongoing rewards remain unchanged:

  • 3 points per dollar on the first $150,000 spent on travel and select business categories each account anniversary year. Those categories include shipping; internet, cable and phone services; and advertising purchases through social media sites and search engines.
  • 1 point per dollar spent on all other purchases.

Cardholders have a lot of options when it comes to redemption: Points are worth 25% more when redeemed through Chase Ultimate Rewards®. In addition to travel, they can be redeemed for cash back, gift cards, Apple purchases and more. Points can also be transferred to multiple travel partners, including Hyatt, Marriott, United and many others.

The card was already a very good option for small-business owners and was among NerdWallet's favorites in the category, and now it may be an even more attractive choice — as long as cardholders spend enough to qualify for the sign-up bonus.

If that's not realistic for you, you may want to compare the Ink Business Preferred® Credit Card with other top credit cards for small businesses.

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