The Bottom Line: A fine choice if you don't want an annual fee and want a rewards program you don't have to think about. But higher spenders could get a better return from a different card.
- Earning unlimited 1.5% cash back could mean thousands of dollars each year going back into your business
- Plus, a one-time $200 cash bonus once you spend $3,000 on purchases within 3 months from account opening
- Save on interest with 0% intro APR on purchases for 9 months; 15.24% - 23.24% variable APR after that
Pros & Cons
High rewards rate
No annual fee
No foreign transaction fee
Alternate Pick: Bonus categories
SimplyCash® Plus Business Credit Card from American Express
Earn 5%, 3% and 1% cash back
This no-fee card is a good choice for business operators willing to put a little effort into customizing their cash-back rewards. The highlight: You get to choose which category earns 3% cash back, in addition to the card's standard 5% categories. All other spending earns 1% cash back. Terms apply. There's no sign-up bonus, but the 0% intro APR period is excellent.Read our review
Small-business operators looking for simplicity in a rewards credit card can do a lot worse than the Capital One® Spark® Cash Select for Business. The rewards are easy to understand: unlimited 1.5% cash back on all purchases, with no bonus categories to keep track of and no caps on the amount of spending eligible for rewards. There's also a $0 annual fee, so it costs nothing to carry.
Capital One® Spark® Cash Select for Business: Basics
The Capital One® Spark® Cash Select for Business is a stripped-down version of Capital One's flagship small-business cash-back card. There's no annual fee, but you earn a lower rewards rate (1.5% as opposed to 2%) and your sign-up bonus is smaller. On the other hand, this card gives you a 0% intro APR period, which its big brother does not.
Card type: Small business.
Annual fee: $0.
Sign-up bonus: Plus, a one-time $200 cash bonus once you spend $3,000 on purchases within 3 months from account opening.
Rewards: Unlimited 1.5% cash back on all purchases.
Interest rate: 0% on Purchases for 9 months, and then the ongoing APR of 15.24% - 23.24% Variable APR.
Foreign transaction fees: None.
Why you might want the Capital One® Spark® Cash Select for Business
Many business cash-back cards offer bonus categories that can supercharge your rewards if your business spending fits into them — or limit your rewards if it doesn't. By offering a 1.5% flat rate on all spending — which matches the industry standard for consumer credit cards — the Capital One® Spark® Cash Select for Business does away with such complications. That makes this card a good choice for a business whose spending is all over the map, or not concentrated in typical bonus categories like office supplies or travel.
Bonus categories also tend to focus on operating expenses rather than inventory. The Capital One® Spark® Cash Select for Business pays 1.5% on all purchases, even inventory orders. Put $10,000 a month in inventory spending on the card, for example, and you've got $1,800 in rewards in a year. To further simplify things, you can set up automatic redemption to "cash in" your rewards when the balance reaches a certain amount. Or you can redeem on request.
Introductory 0% APR period
If you’re planning to furnish a new office or have another large purchase coming up, the Capital One® Spark® Cash Select for Business gives you an introductory APR of 0% on Purchases for 9 months, and then the ongoing APR of 15.24% - 23.24% Variable APR. This perk grants you extra time to pay off the expense without incurring interest.
To give you an idea of the potential savings, say you spend $15,000 shortly after receiving the card and plan on paying the balance in full before the end of the 0% period. If you were to make the same purchase on a card with an 18% APR, you’d pay more than $1,100 in interest over nine months — cash you’d probably rather invest in your business.
NO FOREIGN TRANSACTION FEES
Having a card that doesn't slap a surcharge on foreign purchases is good if you do a lot of international travel — and great if you buy inventory overseas. Credit card foreign transaction fees average about 3%, meaning they can easily wipe out the value of any rewards you earn. That's not a concern with this card.
BUSINESS INTEGRATION BENEFITS
You can get cards for your employees to use for business expenses at no additional cost, while you earn the rewards. Capital One gives you quarterly and annual statements detailing your spending. You can download purchase records in several formats, including Quickbooks and Excel.
Why you might want a different card
You spend more than $19,000 a year
Once your spending tops $19,000 in a year, you'll get greater rewards from this card's "big brother," the Capital One® Spark® Cash for Business, even after taking into account that card's annual fee of $0 for the first year, then $95. The Capital One® Spark® Cash for Business pays 2% cash back on all purchases, plus it gives you a hefty sign-up bonus: Earn a one-time $500 cash bonus once you spend $4,500 on purchases within 3 months from account opening.
You want a bigger sign-up bonus or a longer 0% PERIOD
The Ink Business Unlimited℠ Credit Card checks many of the same boxes as the Capital One® Spark® Cash Select for Business: a $0 annual fee, unlimited 1.5% cash back on all purchases, a 0% intro APR period and a sign-up bonus. On the last two features, this card improves on the Capital One® Spark® Cash Select for Business:
APR: 0% on Purchases for 12 months, and then the ongoing APR of 15.49% - 21.49% Variable APR.
Bonus: Earn $500 bonus cash back after you spend $3,000 on purchases in the first 3 months from account opening.
The card does charge a 3% foreign transaction fee, however, so it's not a good choice for international purchases.
You want bonus categories
Key to the value proposition of the Capital One® Spark® Cash Select for Business is that you don't have to put any effort into its rewards — you spend wherever you want, you earn 1.5%, and that's that. But some people don't mind managing their rewards a little. If you're one of them, consider the SimplyCash® Plus Business Credit Card from American Express. This $0-annual-fee card gives you:
5% cash back on the first $50,000 spent at wireless telephone services purchased directly from U.S. service providers and U.S. office supply stores.
3% cash back on the first $50,000 spent in the category of your choice from a list of eight. (Options include U.S. gas stations, U.S. restaurants, several travel categories and more.)
1% cash back on all other purchases. Terms apply.
There's no sign-up bonus, but there's a great introductory APR period: 0% on Purchases for 15 months, and then the ongoing APR of 14.49% - 21.49% Variable APR.
Is the Capital One® Spark® Cash Select for Business right for you?
Small-business owners who don’t have the time to keep track of bonus categories or want to avoid extra fees will find the Capital One® Spark® Cash Select for Business an easy choice. However, if your business puts tens of thousands of dollars a year on a credit card or you spend a lot in another card’s bonus category, you can probably earn a richer return elsewhere.
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