If you’re a small business owner looking for a card that earns flat-rate cash back on every purchase, and you’re able to pay off your balance in full every month, the Capital One Spark Cash Plus could be exactly what you need to manage your cash flow.

Capital One debuted its new charge card in August 2021; it replaced the Capital One Spark Cash for Business, which was a traditional business credit card. Be aware that the Capital One Spark Cash Plus charges a $150 annual fee, so businesses that don’t spend enough to recoup that in cash back might prefer a no-annual-fee card.

The Capital One Spark Cash Plus is also a good choice for business owners who like to keep business and personal finances entirely separate. While other Capital One business cards report account activity to both the cardholder’s personal and business credit reports, the Capital One Spark Cash Plus won’t appear on your personal credit reports as long as the account is in good standing.

• Your purchasing power is flexible

  When using the Capital One Spark Cash Plus, you have no preset spending limit. That’s in contrast to a traditional business credit card, which will have a credit limit the cardholder cannot exceed. If you need flexibility in how much you can put on your card, the Capital One Spark Cash Plus excels in that regard. However, know that this doesn’t mean you can spend an unlimited amount — rather, your purchasing power adapts based on your spending and payment behaviors.

• Cash back on all purchases

  Cardholders with the Capital One Spark Cash Plus earn unlimited 2% cash back on every purchase; 5% cash back on hotels and rental cars booked through capital one travel. If you don’t like dealing with elevated earning rates in some spending categories and lower rates in others, you’ll appreciate this card’s competitive flat rewards rate.

• Sign-up bonus

  This card comes with a two-tiered sign-up bonus. You can earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening. Spending about $1,666.67 per month for three months can reach the lower spend amount, while it will take approximately $8,333.33 per month for six months to hit the second target.

• Yearly bonus

  You can earn an annual $200 cash bonus every year you spend $200,000 or more on your Capital One Spark Cash Plus.

• No foreign transaction fee

  If business requires you to travel abroad, you can swipe the Capital One Spark Cash Plus without worrying about being charged a foreign transaction fee — there is none.

• Your balance is due every month

  This is a charge card — so unlike a traditional credit card, you can’t roll over a balance month to month. You must pay what you charge to the Capital One Spark Cash Plus in full every month. If you don’t, you’ll be charged a 2.99% monthly late fee.

• The annual fee is on the high side

  While there are business cards with annual fees around $95 — and even some with no annual fee — the Capital One Spark Cash Plus charges an annual fee of $150. It’ll take $7,500 in spending on purchases earning 2% to recoup the amount of the annual fee in cashback earnings, and the point where you’ll start to earn more with this card (after subtracting the amount of the annual fee) compared to a 1.5% cashback card with no annual fee is when your business spends more than $30,000 a year.

 

A competing business card with no preset spending limit is the American Express^® Business Gold Card. With this card, you’ll get 4X Membership Rewards® points on the 2 select categories where your business spent the most each month*. Categories include:

• Airfare (when purchased directly from airlines)
• Advertising on TV, radio, and online
• Computer hardware, software, and cloud systems (from select technology providers)
• Gas station purchases
• Restaurants (including takeout and delivery)
• Shipping

All categories except airfare are restricted to U.S. purchases for earning the 4X rate. In addition, the 4X rate only applies to the first $150,000 in purchases in eligible categories per calendar year, after which you’ll earn 1X on all spending. If you max out that spend amount, you can earn 600,000 points at the boosted rate — that’s worth $6,000 if you redeem each point at a 1 cent value.

Note that the American Express^® Business Gold Card charges a $295 annual fee.

You should also be aware that having no preset spending limit doesn’t mean you can spend an unlimited amount; what you can spend will adapt based on factors like your purchase and payment history.

To see rates and fees for the American Express^® Business Gold Card please click here.

The Capital One Spark Cash Plus is an excellent choice for businesses that spend $30,000 or more per year and need a card with no preset spending limit. By spending more than $30,000 per year on this card, the cashback rate outweighs the $150 annual fee and allows you to earn more than you would with a 1.5% cashback card with no annual fee. And because this is a charge card, there isn’t a hard credit limit like you’d have with a traditional credit card — so if you need flexibility to make a big purchase, this could be the perfect financial tool.

However, if you want a card that provides elevated rewards in two categories where your business spends the most each month (chosen from six categories), another card with no preset spending limit that might serve you well is the American Express^® Business Gold Card. This is a uniquely flexible rewards program that can benefit your business if your spending patterns shift from month to month. Note, however, that the annual fee for the American Express^® Business Gold Card is $295.

To see rates and fees for the American Express^® Business Gold Card please click here.