Nowadays small business credit cards are more competitive than ever before. Not only can they help you earn valuable rewards for your business, but in some cases business credit cards also offer valuable perks that can save you a lot of money and offer peace of mind with your purchases.
Chase Ink Business Preferred Card Basics for January 2020
The Ink Business Preferred℠ Credit Card was introduced in 2016, and has quickly become one of the best business credit cards out there. I’d argue that this is the single all-around best business credit card.
The card has an incredible sign-up bonus, reasonable annual fee, excellent bonus categories, and valuable perks. So, let’s look at the details of the card.
Chase Ink Preferred 80K Point Sign-Up Bonus Offer
With the Ink Preferred Card earn a sign-up bonus of 80,000 Chase Ultimate Rewards points after spending $5,000 on purchases within the first three months of account opening.
As far as I’m concerned this is the most generous sign-up bonus offered by any credit card out there. I value Ultimate Rewards points at 1.7 cents each, so to me those 80,000 points are worth a whopping $1,360.
Chase 5/24 rule
Chase has something that’s known as the 5/24 rule. With this, you typically won’t be approved for the card if you’ve opened five or more new card accounts in the past 24 months. So if you do apply for this card, make sure you’re under that limit. Here’s how to check your 5/24 status, and here are general rules on applying for Chase business cards.
Chase Ink Preferred $95 Annual Fee
This Ink Business Preferred has a $95 annual fee, which is among the most reasonable annual fees you’ll find on a premium business card. You can add employees to your card at no extra cost, meaning you can also earn points for their spending at an accelerated rate.
Earning Points With The Ink Preferred
One of the things that makes the Ink Preferred Card so great is that it offers an incredible points earning structure, as you can earn up to triple points on many purchases
3x Points Categories
The Ink Business Preferred offers 3x Ultimate Rewards points in the following categories:
- Shipping purchases
- Internet, cable and phone services
- Advertising purchases made with social media sites and search engines
Those are some extremely useful and widespread bonus categories for most businesses. The “travel” category covers all kinds of things, from flights to hotels to rental cars to parking to ridesharing.
A lot of businesses have internet and phone service expenses, so you can earn triple points in those categories as well. If you’re a business that spends a lot on social media or search engine advertising (i.e., Facebook or Google), that could pay off very nicely as well.
I don’t think there’s a more well rounded business card out there in terms of the rewards you’ll get, and this card “only” has a $95 annual fee.
Earn 3x points on travel purchases with the Ink Preferred
$150,000 Annual Limit
You’re capped on earning 3x points on the first $150,000 spent in the above categories combined every account anniversary year. That means they’re not using a January 1 through December 31 calendar, but rather it’s based on a rolling 12 months from when you opened your account.
No Foreign Transaction Fees
The Ink Business Preferred has no foreign transaction fees, so it’s an ideal card for purchases abroad.
Use the Ink Preferred abroad with no foreign transaction fees
Redeeming Points With The Ink Preferred
- Points can be redeemed for 1.25 cents each towards the cost of a travel purchase through the Ultimate Rewards website
- Points can be transferred at a 1:1 ratio to about a dozen airline and hotel partners
The Ultimate Rewards airline and hotel partners include the following:
|Aer Lingus Aer Club||IHG Rewards Club|
|Air France/KLM Flying Blue||Marriott Bonvoy|
|British Airways Executive Club||World Of Hyatt|
|Southwest Airlines Rapid Rewards|
|Virgin Atlantic Flying Club|
In general my favorite use of Ultimate Rewards points is transferring them to airline and hotel partners, where you can get outsized value for aspirational redemptions. For example, you can redeem for first and business class tickets that would cost thousands and thousands of dollars if paying cash, or for luxury hotels that would cost $1,000+ per night.
Redeem Ultimate Rewards points for a stay at the Park Hyatt Paris
Ink Business Preferred Card Benefits
As you can see above, the Ink Business Preferred offers an incredible sign-up bonus, and huge 3x points earning categories. But the benefits of this card go way beyond that.
Let’s look at some of the other benefits this card offers, ranging from car rental coverage to an amazing cell phone protection plan (in all cases you’ll want to consult your cardmember agreement for full details):
Ink Preferred Cell Phone Protection
Get up to $600 per claim in cell phone protection against covered theft or damage for you and your employees listed on your monthly cell phone bill when you pay it with your Chase Ink Business Preferred. Maximum of three claims in a 12 month period with a $100 deductible per claim.
Ink Preferred Car Rental Coverage
The Ink Business Preferred offers an excellent primary auto rental CDW (collision damage waiver) benefit:
- This is valid when renting globally for business reasons, and is valid outside the US when renting for business reasons
- Decline the rental company’s collision insurance and charge the entire rental cost to your card
Get car rental coverage with the Ink Business Preferred
Ink Preferred Extended Warranty Protection
With this, you can extend the time period of U.S. manufacturer’s warranty by an additional year, on eligible warranties of three years or less.
Ink Preferred Trip Cancellation & Interruption Insurance
If your trip is cancelled or cut short by sickness, severe weather and other covered situations, you can be reimbursed up to $5,000 per trip for your pre-paid, non-refundable travel expenses, including passenger fares, tours, and hotels.
This coverage can come in handy if your flight gets canceled
Is The Ink Business Preferred Right For You?
While I think the Ink Preferred is the most well rounded business credit card out there, it’s not necessarily for everyone. So I wanted to look at some comparable cards and share my thoughts on which makes the most sense.
Quick Comparison: Chase Sapphire Preferred
- The Ink Preferred is a business card, while the Sapphire Preferred is a personal card
- The Ink Preferred has an 80K sign-up bonus, while the Sapphire Preferred has a 60K bonus
- The Ink Preferred offers up to 3x points on travel and other categories; the Sapphire Preferred has the advantage of offering 2x points on dining
- The Ink Preferred offers cell phone protection, with the Sapphire Preferred doesn’t
I’m simply comparing these two cards because both have “Preferred” in the name, though I think the Ink Preferred is a significantly more well rounded card.
Complements: Ink Business Cash & Ink Business Unlimited
While the Ink Business Preferred is Chase’s premium business credit card, there’s also the Ink Business Unlimited℠ Credit Card (review) and Ink Business Cash℠ Credit Card (review). These two cards are excellent complements, and it can make sense to have all three (I have all three, for example).
The other two cards offer sign-up bonuses of up to 50K points, have no annual fee, and offer excellent bonus categories:
- The Ink Business Unlimited offers 1.5x points on all purchases
- The Ink Business Cash offers 5x points on the first $25,000 of combined purchases per cardmember year on office supply stores, internet, cable TV, mobile phones, and landlines, and 2x points on the first $25,000 of combined purchases per cardmember year on restaurants and gas stations
Earn Cash Back Instead
While I think the Ink Business Preferred is useful for most businesses, there is one exception. If you’re looking for a cash back business card, I wouldn’t recommend the Ink Preferred long term. It’s a great travel rewards card.
If you want to earn cash back, consider the Capital One® Spark® Cash for Business (review), which offers a flat 2% cash back on all purchases, which is an excellent return on spending. The card also has a $95 annual fee, though it’s waived for the first year.
Chase Ink Business Preferred Summary
The Ink Business Preferred is the single most well rounded business credit card out there, in my opinion. The card offers the biggest sign-up bonus of any credit card, it offers incredible 3x points categories for common spending categories for businesses, and it offers amazing protection, ranging from car rental damage to cell phone protection.
While I’d say this card isn’t worth it for someone strictly looking for cash back, otherwise you simply can’t go wrong with this card, in my opinion.