Capital on Tap: A Respectable Cash-Back Card With Potential for Low APR

Capital on Tap checks all the boxes for a cash-back business card. It offers 1.5% cash back on all purchases. It has no annual fee. And new customers can net a welcome bonus: Earn $200 cashback when you spend $15,000 in the first 3 months.

Those features make Capital on Tap an appealing option for business owners who want a simple, straightforward card. Except for one important detail: The card is not currently available to sole proprietors, which excludes the vast majority of businesses.

Capital on Tap also falls short on long-term value when compared with the best business credit cards on the market. The potential for a high credit limit (up to $50,000) and low APR may outweigh a higher earning potential for some business owners, though.

Key features

Card type: Small-business credit card.

Annual fee: $0.

Recommended credit score: FICO score of 670 or higher.

Sign-up bonus: Earn $200 cashback when you spend $15,000 in the first 3 months.

Rewards: 1.5% rewards on all spend, no caps or restrictions. Rewards can be redeemed as a statement credit or to purchase gift cards at a slight discount.

APR: 17.74%-35.99% Variable APR.

Foreign transaction fee: None.

Other benefits:

• Unlimited employee cards at no additional cost.

• 24/7 live customer service (via phone).

Capital on Tap requirements

The Capital on Tap business credit card is available to companies with at least six months in business and $2,500 in monthly revenue. It is not currently available to sole proprietors, charities and nonprofits, trusts or clubs.

Credit score requirement: Capital on Tap doesn’t have a hard floor for credit scores, but applicants with a FICO score of 670 or higher have the best chance of approval.

“While it's possible to be approved for our credit card if the FICO is below this threshold … the chances of that are relatively low,” said a spokesperson for Capital on Tap via email.

Capital on Tap does only a soft credit pull, so applying won’t ding your personal or business credit score (though opening the card may temporarily impact your score).

You need to provide the following information when you apply:

• Business legal name and EIN.

• Business phone number, address and website.

• Monthly revenue, industry and years in business.

• Personal address, phone number, date of birth and Social Security number.

• Login credentials to link your business bank account.

• EIN and business formation documents (articles of incorporation, etc.).

Monthly payments are made automatically via ACH. You’ll also select your payment preference — full balance or minimum payment (10%) — when you apply. You can also opt to pay a fixed amount each month once approved.

Application decisions are typically made within 48 hours, and if approved, your Capital on Tap business credit cards will arrive within four days. Note: You can get an unlimited number of employee cards.

Why you might want the Capital on Tap business credit card

Simple, straightforward rewards

There are no spending caps or bonus categories to track with Capital on Tap. Cardholders earn a flat, unlimited 1.5% cash back, which can be redeemed for a statement credit or used to purchase gift cards at a discount using Capital on Tap’s rewards portal.

Sign-up bonus

Capital on Tap offers a sign-up bonus: Earn $200 cashback when you spend $15,000 in the first 3 months.

24/7 customer service

Chatbots and automated virtual attendants can answer simple questions, but sometimes you need to talk with a real person. You can do exactly that, and do it on your time, with Capital on Tap’s 24/7 live phone customer service.

Why you might want a different card

Sole proprietors don’t qualify

The main drawback of Capital on Tap: It isn’t available to the vast majority of small-business owners. Sole proprietors can’t currently apply for a Capital on Tap business card. Nonprofit organizations, trusts, clubs and other non-registered organizations are also excluded from Capital on Tap.

Potential for sky-high APR

Capital on Tap advertises rates as low as 17.74%, which is exceptionally low for a small-business credit card. But the high end of the card’s APR range (35.99%) is also extreme and will make carrying a balance very expensive.

Your credit score and business financials will dictate the APR on your Capital on Tap card. You won’t know your APR until your application is approved, but businesses with thin credit and low revenue can expect to land on the higher end of that APR range.

Competitors offer higher reward potential

Capital on Tap’s unlimited 1.5% cash back is a respectable rewards rate — and on par with some of the best business cards — but business owners who want to maximize rewards can get more value elsewhere.

Comfortable with bonus categories? You can get up to 5% cash back with the Ink Business Cash® Credit Card. Prefer flat-rate rewards? The American Express Blue Business Cash™ Card earns 2% back on the first $50,000 in eligible purchases each year (terms apply). It also has no annual fee, an intro APR offer and a larger welcome bonus than Capital on Tap.

Should you get the Capital on Tap business credit card?

Business owners who value simplicity will find a good match with Capital on Tap, especially if they have a strong enough credit profile to qualify for the low end of the card’s APR range. But if your credit is that good, you can find better long-term value with another card.