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Chase Rejiggers Rewards, Boosts Bonus With Ink Preferred

November 17, 2016
Business Credit Cards, Credit Cards
Chase Adding "Preferred" Level to Business Ink Credit Card Line
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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:

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:

 Ink Plus® Business Credit CardChase Ink Business Preferred
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 bonusEarn 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 80,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. That's $1,000 toward travel when you redeem through Chase Ultimate Rewards®

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.”

This article has been updated. It originally published Nov. 10, 2016. 

Information related to the Chase Sapphire Reserve® has been collected by NerdWallet and has not been reviewed or provided by the issuer of this card.

Virginia C. McGuire is a staff writer at NerdWallet, a personal finance website. Email: virginia@nerdwallet.com. Twitter: @vcmcguire.