Capital One® Spark® Cash for Business Review

  • 8 min read

Having a rewards card, as a business owner, stretches your budget further. You can earn cash bonuses, issue free employee cards, and receive unlimited cash back with the right card. You’ll find that many of these benefits are available from the Spark Cash credit card from Capital One. This credit card is issued to businesses exclusively. In most locations, you must be registered as a business, even as a sole proprietor, to qualify for this credit card.

Quick Facts About the Capital One Spark Cash Card

  • Cardholders receive an unlimited 2% cash back on all of their business purchases. There are no minimums required to make a rewards redemption.
  • New accounts qualify for a $500 cash bonus after making $4,500 with the Spark Cash card within the first 90 days of opening an account.
  • There is no cost to issue cards to employees. All employee cards earn rewards for your business.
  • The purchase rate is a variable 18.49% APR. The annual fee is $95 after the first year, which is free, as an introductory offer.

A business spending $150,000 per month with the Capital One Spark Cash card would earn about $36, 000.00 in cash back every year.

Benefits and Perks of the Capital One Spark Cash Card

Capital One provides account holders with a customized itemized report of their quarterly spending. That makes it easier for small-to-medium businesses (SMBs) to plan, budget, or prepare for their tax responsibilities. Your purchase records with the Spark Cash card are available for download into multiple common formats, including MS Office, QuickBooks, and Quicken®.

The Spark Cash card also qualifies for the Visa SavingsEdge program. Several merchants work with this program to offer specific discounts of up to 15% when you shop with them and use your new business credit card. Extended warranty protections, purchase security, and zero-dollar fraud liability are also included.

Balance transfers are not available with this credit card from Capital One. It is for purchases or cash advances only. The variable APR for cash advances is 24.49% and a 3% or $10 minimum applies as a transaction fee. If a penalty APR applies to the account, then it is 30.9% and varies based on the prime rate.

Even though this is a business credit card, some applicants may discover that their personal credit profile is accessed to determine their credit line. You can use personal income, self-employment income, and even public assistance as part of your reported income during the application process. Because it is tied to your personal credit, it will affect your overall credit score.

Fees and Expenses of the Capital One Spark Cash Card

Even with the annual fee, the higher cash back percentage on each transaction can make up the cost for most business owners. When compared to fee-free cards, which offer 1.0-1.5% cash back, spending just $20,000 per year can be enough to make the annual fee worth the investment.

There is no foreign transaction fee with this card either. That makes it easier for businesses to work with vendors who may be overseas. It also means foreign contractors can charge you in their home currency without you needing to worry about what the final cost will be on your credit card statement.

The variable APR of 18.49% APR is somewhat high on the Spark Cash card, considering it requires a solid credit profile for approval. Even similar cash back cards for personal spending from Capital One have a lower APR. The rewards profile can counter this issue for businesses that do not carry over a balance from month-to-month, though careful spending habits are recommended.

There are no bonus rewards categories available with this credit card option either. It is a no-frills way to earn cash back on every purchase. It may not earn as many rewards for some businesses as competitive cards, however, and there are no real travel benefits with this card outside of the lack of a foreign transaction fee.

Full Review of the Capital One Spark Cash Card

The Spark Cash credit card from Capital One feels like any other credit card you may have used. It just works for your business needs. Anyone who is running a side hustle or is self-employed benefits from this card because it works with your entrepreneurial needs. Businesses of any size can apply for this line of credit.

Having the 2% cash back is nice from a business perspective because it helps the budget. You literally get money back for your business from the purchases you are already making. If you want gift cards or miles, however, this card is not for you. It provides a no-nonsense rewards structure that you don’t need to think about. At the end of each billing cycle, you get money back in your pocket.

The best benefit offered by the Spark Cash card, however, is the customer service received when something happens with your card. Maybe you forgot about a transaction. Perhaps you have a transaction that needs to be disputed or wasn’t authorized before an employee made it. The customer service department at Capital One takes you through the steps that must be taken to fully review the account.

Your online dashboard for this credit card is very helpful as well. You have access to a FAQ page that solves many questions. You’ll see a total balance right away, a summary of the most recent charges, and what your minimum payment happens to be immediately after logging into your account. Once there, you can proceed further into the account to access a number of different services, from requesting a credit line increase to issuing new employee cards.

Where this credit card may fall short is the lack of an introductory offer beyond the waving of the annual fee. Without a 0% APR period, some SMBs may struggle to reach their startup goals because interest applies immediately after the grace period. The APR is higher than other cards as well, which could mean more money out of the budget than into it.

If you’re trying to avoid fees, this credit card option might not be for you. SMBs which spend less than $20,000 per year may benefit from a no annual fee business card instead. There may be better rewards for those who frequently travel for business with other cards as well.

The rewards program, however, is about as simple as it gets. You can even schedule your account to automatically redeem rewards once they reach a specific level. That means you can receive a check in the mail or take a statement credit to help your bottom line. At 2% cash back on all purchases, there is never a worry about certain spending categories or signing up for rotating bonuses every quarter.

You can even change the automatic redemption level as needed to fit the current needs of your budget.

If you want truly unlimited cash back earnings from your current business purchasing habits, then the Capital One Spark Cash credit card provides an excellent user experience. Competitive cards may offer better rewards in specific categories. The unlimited rewards, however, are one of the best in the industry today.

There is a good bonus to earn that most SMBs will easily reach with their spending habits. You can decide when you receive your cash back rewards. This credit card really is an easy way to extend the purchasing power of your business every month.

Credit Cards Similar to the Capital One Spark Cash Card

American Express offers the SimplyCash® Plus Business credit card for SMBs. It provides up to 5% cash back in specific categories, such as office supplies. You get to choose a 3% cash back category that works for your business. All other purchases earn an unlimited 1% cash back. The higher cash back rewards are capped to the first $50,000 in purchases each year. There is no annual fee associated with this credit card, though foreign transaction fees do apply.

Chase® offers the Ink Business Cash credit card, which includes a 12-month 0% APR for purchases and balance transfers. The ongoing APR may be lower for some applicants as well, with the lowest rate published at 14.74%. There is a 5% cash back category for office supplies, up to $25,000 in purchases per year. Fuel stations and restaurants earn 2% cash back, with another $25,000 cap on purchases. Then you would earn an unlimited 1% cash back on the remainder of your purchases. No annual fee applies to this competitive credit card option either.

The KeyBank Business MasterCard® is a final competitive option to think about. It too offers no annual fee. There is a 0% APR introductory offer for the first 6 months that includes purchases and balance transfers. It will also separate your personal expenses from your business expenses for you with its report options. The regular APR may be as low as 11.74% for well-qualified applicants.

View for more information about Capital One Spark Cash for Business.

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Christopher - BSc, MBA

With over two decades of combined Big 5 Banking and Agency experience, Christopher launched Underbanked® to cut through the noise and complexity of financial information. Christopher has an MBA degree from McMaster University and BSc. from Western University in Canada.