Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
» This page is out of date
The terms of several credit cards mentioned in this article have changed since it was first published. See our details page on the Ink Business Preferred® Credit Card for the current offer.
The rewards arms race among credit card issuers has moved into a new arena, business credit cards, as Chase rolls out its new Ink Business Preferred® Credit Card with a sign-up bonus worth as much as $1,000.
It's the third new card Chase has introduced this year as it aggressively courts cardholders in different segments of the market:
In April, Chase introduced the Chase Freedom Unlimited®. It earns an unlimited 1.5% cash back on everything you buy. The card competes with flat-rate cards such as the Capital One Quicksilver Cash Rewards Credit Card and the Citi Double Cash® Card.
In August, it came out with the Chase Sapphire Reserve®. The card's generous perks and rewards turned it into a viral hit and signaled newly intensified competition among premium cards. American Express responded by increasing the travel rewards on The Platinum Card® from American Express.
Now, Chase seems to be going after more AmEx market share by targeting business operators who might otherwise choose The Business Platinum Card® from American Express or the American Express® Business Gold Card.
Increased competition among card issuers means better rewards for cardholders.
“Banks have been fighting for years to offer the best consumer-facing rewards credit cards," says NerdWallet’s credit and banking expert, Sean McQuay. "It’s no surprise to see that battle move into the business card side."
What the Ink Business Preferred® Credit Card offers
In many ways, the new card is similar to the old Ink Plus® Business Credit Card, which it is replacing in Chase's business card lineup. It offers higher rewards on common expenditures for small businesses, although the breakdown of bonus categories is a little different. The top bonus rate on the new card is lower — 3 points per dollar spent compared with 5 points per dollar — but there's a higher spending cap for bonus rewards.
Take a look:
OLD CARD: Ink Plus® Business Credit Card | NEW CARD: Ink Business Preferred® Credit Card | |
|---|---|---|
Rewards | • 5 points per $1 spent on up to $50,000 in combined spending at office supply stores and telecommunications services every year. • 2 points per dollar on up to $50,000 in combined spending at gas stations and hotels every year. • 1 point per dollar on all other purchases. | • 3 points per dollar on up to $150,000 in combined spending on travel, telecommunications, shipping and qualifying advertising expenditures every year. • 1 point per dollar on all other purchases. |
Annual fee | $95 | $95 |
Signup bonus | Earn 60,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®. | Earn 100,000 bonus points after you spend $8,000 on purchases in the first 3 months from account opening. That's $1,000 cash back or $1,250 toward travel when redeemed through Chase Travel℠. |
Chase Ultimate Rewards points values
Chase Ultimate Rewards points are generally worth 1 cent apiece. But depending on the card, you can get a higher value by redeeming points for travel booked through Chase. The Ink Business Preferred® Credit Card offers a redemption value of 1.25 cents per point when used to book travel through Chase. That's the same as on the old Ink Plus® Business Credit Card, as well as on the Chase Sapphire Preferred® Card (though still short of the 1.5 cents per point on the Chase Sapphire Reserve®).
At that value, 80,000 points is worth $1,000. That leaves comparable business cards from American Express in the dust.
Chase vs. American Express
The year 2016 hasn't been good to American Express. Major partnerships with Jet Blue, Costco and Fidelity Investments all ended, and now Chase is working hard to pull away top-tier credit card customers, both individuals and small businesses.
“As banks continue to try to trump one another’s rewards, consumers are the real winners," says McQuay. "And the best news? There’s no sign of this competition slowing down.”
Find the right credit card for you.
Whether you want to pay less interest or earn more rewards, the right card's out there. Just answer a few questions and we'll narrow the search for you.
