Chase Ink Business Cards – Ink Cash Is a Standout, Ink Plus Isn’t

[Update June 23rd, 2011: The Chase Ink Cash just got better. Read on for further details, or check out our blog post.] The Chase Ink is actually a suite of four different small business credit cards. Each has its own features, as we detail below. But we think two are worth seriously considering, and two aren’t.

Bottom line: The Chase Ink Cash is a great small business credit card (we use it at NerdWallet), and can earn over 2% if used correctly. Ink Bold is pretty good for certain people, and can earn you up to 1.475% rewards. On the other hand, the Ink and Ink Plus are mediocre cards.

The key feature that every one of these cards (except for the Ink Cash) share is the Chase Ultimate Rewards program, which is a great rewards program on par with AmEx Membership Rewards. It outshines Citibank’s ThankYou Points and BofA’s World Points in almost every way, most notably in terms of being able to transfer points 1:1 to affilate airlines’ point programs, and the ability to redeem a small amount of points at a full 1% rate (i.e. 2,000 points for a $20 check). Ultimate Rewards also offers various travel benefits as a bonus.

The Breakdown, Best to Worst

Ink Cash, The One You Need To Know About

[Update June 23rd, 2011: We liked the Ink Cash before, but now it has a darn good signup bonus and a jacked up rewards rate. The new features are bolded.] The Chase Ink Cash is a real stand-out, because it gets you 5% cash back on bonus categories that are ideal for small businesses – cable and telecom services, plus office supplies, up to $25k in purchases annually – as well as 2% back on gas and dining up to $15k in purchases. You also get 1% back on everything else, and the cash is automatically credited to your monthly statement. If your business maxes out on the bonus categories and spends an additional $15k, you’ll get an average rewards rate above 3%.

That’s in addition to the new signup bonus: $150 cash back after your first purchase, plus 10k bonus points for spending $5,000 in the first 3 months, for a total signup bonus of $350. And, on top of all that, it offers a 6-month promotional period with no purchase or balance transfer APR.

Ink Cash℠ Business
	$250 cash back bonus after you spend $5,000 within 3 months! 5% cash back on the first $25,000 spent annually on office supply store purchases, cellular/landline phone service, and cable services 2% cash back on the first $25,000 spent annually on gas and dining 1% cash back on all other card purchases with no limit to the amount you can earn Cash back rewards do not expire 0% Introductory APR for 6 months No Annual Fee*
Annual Fee Signing Promo APR, variable* Intro APR Promotions $0 250 Cash Bonus after spending $5,000 - in the first 3 months. APR: 13.24% Default APR: 29.99% Cash Adv: 19.24% Purchase: 0% for 6 mos Bal Trans: 0% for 6 mos

Ink Bold, Is a $95 Annual Fee Worth It?

Ink Bold isn’t a credit card, but a “charge card”, so you’re required to pay it off each month.  This means you have a flexible spending capacity rather than a pre-set credit line.  It comes with a $95 annual fee, but in exchange for that you get the chance to earn big bonuses. Unfortunately, the bonuses are more complicated than necessary.

Here’s the idea: Once you hit spending thresholds like $25,000 or $100,000 (shown below), you get bonus rewards.  So if your small business has big expenses, you can earn more than 50,000 bonus points in the first year, and up to 47,500 bonus points in succeeding years.  The problem with this system is that it’s meant to sound better than it really is. Your reward rate plummets between these thresholds, as an incentive to get you to spend more.

Here we broke down the numbers in terms that make more sense. Keep in mind that we are excluding the 5,000 points you get for signing up, except in the “1st year” column, because that only happens in the first year.

If you put stock in Chase’s claim that you can redeem rewards via Ultimate Rewards’ travel agent, then add another 25% to the value of the rewards. You can get up to about 1.8% rewards at the absolute max. That would be pretty decent, but we are always skeptical of booking travel through specific agents – will they really do a better job than Kayak at finding the best price?

Ink Bold℠ with Ultimate Rewards
	50,000 bonus points after you spend $5,000 in 3 months - that's $500 in rewards of your choice, or $625 towards airfare when you redeem online through our Ultimate Rewards booking tool No limit to the number of points you can earn - and points do not expire 5X points per dollar on the first $50,000 spent annually on eligible business purchases No foreign transaction fees and Free Employee Cards No interest or over limit fees No Annual Fee in the first year - that's a $95 savings
Annual Fee Signing Promo APR, variable* Intro APR Promotions $0 the first year, then $95 50,000 Chase Ultimate Rewards Bonus after spending $5,000 - in the first 3 months. N/A Purchase: None Bal Trans: None

Ink, No Annual Fee, but Nothing To Write Home About

This is the standard “intro” Ink card.  No real features to speak of except that there’s no annual fee.

Ink℠ Classic
	25,000 bonus points after you spend $5,000 in the first 3 months!* 5X points per dollar on the first $25,000 spent annually on office supply store purchases, cellular/landline phone service, and cable services 2X points per dollar on the first $25,000 spent annually on fuel and lodging* 1 point per dollar on all other card purchases with no limit on the amount you can earn* Cash back rewards do not expire 0% Introductory APR for 6 months* No annual fee
Annual Fee Signing Promo APR, variable* Intro APR Promotions $0 25,000 Chase Ultimate Rewards Bonus after spending $5,000 - in the first 3 months APR: 13.24% Default APR: 29.99% Cash Adv: 19.24% Purchase: 0% for 6 mos Bal Trans: None

Ink Plus, Better Than Ink If You Spend $50,000 or More

The Ink Plus is a slightly improved version of the Ink (above), with a $60 annual fee which is waived the first year.  Like the Bold, this card is intended for big spenders and world travelers, since you can earn 10,000 bonus points for spending $50,000 in a year and an additional 15,000 when you hit $100,000.  You also get the same travel rewards as with the Ink Bold, which are great for those who find themselves on the road and in airports a lot.

The problem is, it’s not that great of a deal, since at best you get 1.25% when you spend $100,000, and have to pay an annual fee. If you’re splurging on office supplies, gas, and restaurants you can easily beat that reward rate with Ink Cash.

If you’re deciding between Ink and Ink Plus, remember that $60 annual fee on Plus equals 6,000 points. Therefore, once you spend $50,000 on the card in one year, you’re better off with the Ink Plus than the Ink, due to the $10,000 bonus.

Ink Plus℠ with Ultimate Rewards℠ - $100 Bonus Cash Back
	Earn up to 35,000 bonus points in your first  year $100 cash back after first purchase that’s 10,000 bonus points* Complimentary airport lounge access Premium travel benefits No limit to the number of points you can earn – and points never expire 0% Introductory APR* First year free ($60 value)*
Annual Fee Signing Promo APR, variable* Intro APR Promotions $0 the first year, then $60 10,000 Chase Ultimate Rewards Bonus Min APR: 13.24% Max APR: 19.24% Default APR: 29.99% Cash Adv: 19.24% Purchase: 0% for 6 mos Bal Trans: 0% for 6 mos

Further research

Whether you are looking for a low APR to provide your business with free cash flow, or rewards to save your business some cash, our business credit cards page will allow you to compare these vs many others and find the one that will work the hardest for you.