The Capital One Spark Cash is a business card that earns unlimited 2% cash back on every purchase, with no limits or category restrictions. Capital One's page lists a $0 annual fee for the first year and $95 after that. It also lists a $1,000 cash bonus after $10,000 in spending in the first 3 months. What the card is worth to you depends on whether you already carry a Capital One business card, so this review takes both cases and ends with a decision.
If You Already Hold a Capital One Business Card
Start with the bonus. Capital One says the $1,000 bonus may not be available for existing or previous Capital One Business card holders. It also says the bonus is available when you start the application from its page, and may not be available if you leave that page. So judge the Spark Cash on its earning rate, and don't count on the bonus.
If you hold the Spark Cash Select, which has no annual fee and earns 1.5% cash back, the Spark Cash earns 2% and charges $95 after the first year. If you hold the Spark Cash Plus, which earns the same 2% for a $150 fee, the Spark Cash has the lower fee. Capital One's page for the Plus says that fee is refunded each year you spend at least $150,000.
The Spark Cash also earns 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Business Travel. It comes with free employee and virtual cards.
If You Hold No Capital One Business Card: The Spark Cash vs. the Select
Both cards pay cash back at a flat rate. The differences are the rate, the fee and the bonus:
- Earning: 2% on every purchase for the Spark Cash, 1.5% for the Select.
- Annual fee: $0 the first year and $95 after that for the Spark Cash, $0 for the Select.
- Bonus: $1,000 after $10,000 in the first 3 months for the Spark Cash, $750 after $6,000 in the first 3 months for the Select. Capital One says each is available when you start the application from its page, and may not be available if you've held a Capital One Business card before.
Say your business spends $40,000 a year on the card. At 2% that's $800 back, and at 1.5% it's $600. Compare that gap with the $95 fee, and with which bonus you can reach in 3 months: $10,000 in spending for the Spark Cash or $6,000 for the Select.
What the Card Includes
Capital One lists business tools with the card. You can set spending limits for employee cards and see transactions as soon as they post, assign an account manager to make purchases and payments and review transactions, and download purchase records into Quicken, QuickBooks and Excel. There are virtual card numbers for online payments, accounts payable tools for sending and tracking vendor payments, and a choice of monthly due date. You also get fraud alerts, plus extended warranty and protection on eligible items.
Cash back doesn't expire, according to Capital One. You redeem it in your Capital One Business account, for example as a statement credit or a check.
The Decision
If you spend across many categories and want one rate, get the Spark Cash and use the first fee-free year to see what you earn. If the gap between 2% and 1.5% on your own spending comes to less than $95, the Select's $0 fee comes out ahead after the first year. If you hold or have held a Capital One business card, don't count on the bonus, and decide on the rate and the fee.
