Capital One Spark Cash Plus Credit Card Review
The Capital One Spark Cash Plus card stands out in the business credit card market with its straightforward rewards structure and significant earning potential. This review delves into its features, pros, cons, and how it compares to other business cards.
Key Features
Unlimited Cash Back Rewards
- 2% Cash Back on All Purchases: Unlike many business cards that offer varying rewards rates based on spending categories, the Spark Cash Plus provides a flat 2% cash back on every purchase.
- 5% Cash Back on Travel: When you book hotels and rental cars through Capital One Travel, you earn 5% cash back.
Welcome Bonus
- One-Time $1,200 Cash Bonus: New cardholders can earn this bonus by spending $30,000 within the first three months.
No Preset Spending Limit
- Flexible Spending: The card adapts to your spending behavior, payment history, and credit profile, providing a flexible spending limit.
Annual Fee
- $150 Annual Fee: This fee is relatively high for a cash-back business card but can be offset by the rewards if you spend enough.
Additional Features
- No Foreign Transaction Fees: Ideal for businesses with international expenses.
- Employee Cards at No Extra Cost: You can add employee cards for free and earn cash back on their purchases.
- Annual Fee Refund: Spend $150,000 in a year, and Capital One refunds your annual fee.
Pros and Cons
Pros
- High Flat-Rate Rewards: Simple and easy to manage, with no categories or caps.
- Generous Welcome Bonus: Significant bonus potential if spending requirements are met.
- No Foreign Transaction Fees: Saves money on international purchases.
- Unlimited Employee Cards: No additional cost for adding employee cards.
- Annual Fee Refund: High spenders can offset the annual fee completely.
Cons
- Annual Fee: At $150, it’s higher than many other cash-back cards.
- High Spending Requirements: The $30,000 spend in the first three months for the welcome bonus is steep.
- Charge Card: Requires paying off the balance in full every month, which may not suit all businesses.
Comparison with Other Cards
Capital One Spark Cash Select for Excellent Credit
- Annual Fee: $0
- Rewards: 1.5% cash back on all purchases
- Benefits: Allows carrying a balance, but lower rewards rate and welcome bonus.
American Express Blue Business Cash™ Card
- Annual Fee: $0
- Rewards: 2% cash back on the first $50,000 spent annually, then 1%
- Benefits: Good for smaller spenders with a lower, more attainable welcome bonus.
Ink Business Premier® Credit Card
- Annual Fee: $195
- Rewards: 2.5% cash back on purchases over $5,000, 2% on other purchases, and 5% on travel through Chase Travel
- Benefits: Financing option for qualified purchases and a substantial welcome bonus.
Detailed Breakdown
Rewards Structure
| Feature | Details |
|---|---|
| Cash Back on All Purchases | 2% |
| Cash Back on Travel | 5% on hotels and rental cars through Capital One Travel |
| Welcome Bonus | $1,200 for spending $30,000 in the first 3 months |
| Annual Fee Refund | Spend $150,000 annually to get the $150 fee refunded |
| Employee Cards | Free, with unlimited 2% cash back |
| Rewards Expiration | Rewards do not expire for the life of the account |
| Preset Spending Limit | None |
| Foreign Transaction Fees | None |
Fees and Interest
| Fee Type | Amount |
|---|---|
| Annual Fee | $150 |
| Foreign Transaction Fee | $0 |
| Late Payment Fee | 2.99% of the unpaid portion |
| Cash Advance Transaction Fee | Either $5 or 5% of the amount of each cash advance |
Usage and Benefits
Easy-to-Manage Rewards
With the Capital One Spark Cash Plus, earning cash back is straightforward. There’s no need to track spending categories or worry about caps. This card suits businesses with diverse expenses, ensuring you earn cash back on every purchase.
Welcome Bonus
The $1,200 welcome bonus is attractive but requires spending $30,000 within three months, which may be challenging for some businesses. However, for those with high operating costs, this bonus significantly offsets the annual fee.
No Foreign Transaction Fees
For businesses dealing with international suppliers or frequent travel, the lack of foreign transaction fees is a substantial benefit, avoiding the usual 3% fees that can add up quickly.
FAQ
What is the Capital One Spark Cash Plus card?
The Capital One Spark Cash Plus card is a business charge card offering unlimited 2% cash back on all purchases and 5% on travel booked through Capital One Travel. It has no preset spending limit and a $150 annual fee.
How does the welcome bonus work?
To earn the $1,200 welcome bonus, you must spend $30,000 within the first three months of opening the account. The bonus is applied to your rewards balance within two billing cycles after meeting the requirement.
Are there any annual fee refunds?
Yes, if you spend $150,000 or more in a year, Capital One will refund the $150 annual fee.
What are the potential downsides of this card?
The primary downsides include the high annual fee and the requirement to pay off the balance in full each month. Additionally, the high spending requirement to earn the welcome bonus may not suit all businesses.
Can I carry a balance on this card?
No, the Capital One Spark Cash Plus is a charge card, which means you must pay your balance in full each month.
How do the rewards compare to other cards?
The 2% cash back rate is competitive, especially for a card with no preset spending limit. However, other cards may offer different benefits or lower annual fees, which could be more suitable depending on your business needs.
Are there any foreign transaction fees?
No, the Capital One Spark Cash Plus card does not charge foreign transaction fees, making it ideal for international purchases and travel.
How do I manage employee cards?
You can add employee cards for free and set customized spending limits for each card. All purchases made with employee cards earn the same 2% cash back.
Will my rewards expire?
No, your rewards will not expire for the life of the account. However, if your account is closed, you may lose any unredeemed rewards.
The Capital One Spark Cash Plus card is a robust option for businesses looking to maximize cash back without the hassle of tracking spending categories. Its high flat-rate rewards, significant welcome bonus, and flexibility make it a valuable tool for businesses with substantial expenses. However, the $150 annual fee and charge card nature mean it’s best suited for businesses that can manage their cash flow effectively and meet the spending requirements to maximize benefits.
For businesses with smaller budgets or those needing to carry a balance, other cards like the Capital One Spark Cash Select or the American Express Blue Business Cash™ Card may be more appropriate. Ultimately, the right card depends on your business’s specific spending habits and financial needs.
