Home » Travel » Chase Ink Business Preferred Credit Card Review & Benefits FAQ: 3x on travel, 80k points good on United and more

Chase Ink Business Preferred Credit Card Review & Benefits FAQ: 3x on travel, 80k points good on United and more

*Editorial Note: This content is not provided or commissioned by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Nov 14, 2016, but some terms and conditions may have changed or are no longer available. For the most accurate and up to date information please consult the terms and conditions found on the issuer website.

If you have a small business and are interested in earning United or Southwest points with a credit card, consider the Ink Business Preferred℠ Credit Card. It’s a lot like the Chase Sapphire Preferred® Card.

Some terms and conditions may have changed or are no longer available. For the most accurate and up to date information please consult the terms and conditions found on the issuer website.

How do the points work?

The biggest benefit of the Ink Business Preferred℠ Credit Card is the Chase Ultimate Rewards® program that gives you three great ways you can use your points for travel, so you’ll always find a way to get value out of them:

Transfer to airline and hotel partners. In general, the most valuable way to redeem your Chase Ultimate Rewards points is to transfer them to one of Chase’s airline and hotel transfer partners like United MileagePlus® or Southwest Rapid Rewards.

If you do this, you will gain points with the program that you transfer the points to and will need to redeem your points according to that program’s rules. It can be tough to find award availability to use your points this way, but if you can you will often be getting the most value out of your points. Value is variable when utilizing this method, so make sure to check how much you will be saving by using your points before using this method.

Book travel via the Chase website. The second best way to redeem your points is through Chase’s travel portal. When you redeem your points through the travel portal, each point is worth 1.25 cents. So 10,000 points gets you $125 in travel.

Get cash back. If you aren’t able to use your points by transferring them to an airline transfer partner or through Chase’s travel portal, the next best way to redeem your points is via cash back. When using your Chase Ultimate Rewards for cash back, they are worth one cent each.

What airlines can you book?

transferpartners

The airlines that you are able to book with your Chase Ultimate Rewards points is dependent on how you are using your points.
If you are planning to transfer your points to one of Chase’s travel partners, you can book flights on any of the following airlines as well as their partners:

If you are going to use your points through Chase’s travel portal, you’ll be able to book any flight options that show up in your search.

In general, these options should be similar to the results you would see on Kayak, Orbitz, or another online travel agent, but will not always be exactly the same.

If you convert your Chase Ultimate Rewards to cash, you can book any flight that you want.

What can you do with the points?

Your options to use your points are limitless, and if you have some United miles or Southwest points, topping them off is a great idea, but some redemptions do present better value than others. Here are four of our favorites that take advantage of Chase Ultimate Rewards transfer partners:

  • Utilize Flying Blue’s 50% Off Promo Awards to fly two people roundtrip between the U.S. and Europe for only 50,000 Flying Blue miles (25,000 per person) in economy on Delta, Air France, KLM, or Alitalia.

Image courtesy of Singapore Airlines

  • Fly in Singapore Airlines’ Suites Class from New York to Frankfurt. After making use of their online 15% discount, you can book a one-way ticket for only 57,375 Singapore KrisFlyer miles.

hawaiisunset

  • Take the family to Hawaii. Korean Airlines charges 12,500 miles to fly each way between anywhere in the U.S. and Hawaii in economy. You could cover one-way flights for a family of four with 50,000 Chase Ultimate Rewards transferred to Korean Skypass.
  • If you want to add an extra destination to your next trip, use 45,000 United miles to fly in business class one-way between Europe and Central Asia (including India) or the Middle East.

Earning points

Earn 3 points per $1 on the first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable and phone services, advertising purchases made with social media sites and search engines each account anniversary year. Earn 1 point per $1 on all other purchases—with no limit to the amount you can earn.

Combining with the Ink Business Preferred℠ Credit Card for the most rewards

The Ink Business Preferred℠ Credit Card and Ink Business Cash℠ Credit Card are very similar, but adding the $0 annual fee Ink Business Cash℠ Credit Card to your wallet has a few advantages. First of all, the Ink Business Cash℠ Credit Card can Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. It captures some pretty common business expense categories that aren’t being captured with the Ink Business Preferred℠ Credit Card.

What are the protection benefits?

Here is a list of benefits — large and small — associated with the Ink Business Preferred℠ Credit Card. We’ve summarized and condensed the pages and pages of fine print to some of the more important points below.

They are subject to change at any time, so contact Chase at the number on the back of your card before relying on any of these benefits. Unless otherwise specified, you must use the card for a purchase to receive the benefit on that purchase.

Travel protection

The Ink Business Preferred℠ Credit Card has some pretty good built in travel protections including car rental insurance coverage, trip delay, and trip cancellation/interruption insurance.

You won’t pay any foreign transaction fees when you use your card on purchases made outside the United States.

Lost luggage reimbursement: Maximum $3,000, of which no more than $200 for jewelry and fur. This benefit covers physical loss or damage to your carry on or checked luggage as long as at least a portion of the fare is paid using your card.

Travel and emergency assistance: While the cost of services isn’t covered – this benefit will put you on the phone with a travel advisor who can point you in the right direction. Advice available includes medical and legal referral, coordination of emergency evacuation for you and your business associates, lost luggage locating, and delivery of prescriptions and valuable documents.

Trip cancellation: If you have a sudden, unforeseen, unexpected event that prevents you from traveling, you can have up to $5,000 of your non-refundable travel expenses reimbursed if you purchased at least a portion of the fare using your card. Covered events include accidental bodily injuries, death, disease, or physical illness. Note that getting sick from a bacterial or viral infection (i.e. catching the flu or a cold) is not covered unless you picked up a bacterial infection by eating contaminated food. Things like a heart attack and broken bones from accidents may be covered. The coverage is for you, your spouse, and your unmarried dependent children.

Trip delay: If your trip is delayed more than 12 hours due to weather, mechanical issues, or other common unforeseen reasons, and you purchased at least a portion of the fare with your card you can get up to $300 to reimburse hotels, meals, and other expenses your airline doesn’t cover.

Auto collision damage waiver: You get primary coverage if you are renting the car for BUSINESS purposes and book and pay for the rental with the card. If you are using it for PERSONAL reasons there is coverage, but it is secondary. That means you’ll need to file a claim with the auto insurance company you use for your own car first. Note that personal liability is NOT covered by this or any free credit card insurance. You’ll need to purchase that separately from the car rental company or use your own auto policy.

Baggage delay coverage: If your checked bags are delayed more than 18 hours you can use up to $500 ($100 per day of delay) to purchase essential items like clothes and basic toiletries as long as the delay happens when you are away from home. Like all items of coverage, you must pay at least a portion of the fare with your card to qualify. And if the airline gives you an allowance for these things, that will count toward the $100 per day coverage.

Travel accident insurance: You get up to $500,000 in coverage against accidental loss of life, limb, sight, speech, or hearing while you are riding on the carrier whose ticket you purchased with the card. This doesn’t cover things like getting hurt while renting a car, but can cover things like being injured in a plane crash. It covers you, your spouse, and unmarried children.

Purchase benefits

Purchase protection: If within 120 days of buying an item with the card it is stolen or damaged you can get up to $10,000, up to $50,000 over the life of being a cardholder. This doesn’t cover accidentally losing something – it must be stolen or it must be damaged with visible evidence of such. Gifts you purchase for others are covered. You need to file a police report within 48 hours if theft occurs.

Extended warranty: Items you buy with the card that have a warranty can have the warranty extended up to 1 year extra on warranties of three years or less. If you experience a loss, you must file the claim within 60 days of the loss.

Price protection: If you buy an item with the card and see an ad offline or online (as long as it’s not an auction site like Ebay) you can get the difference refunded if you see a lower price, up to $500. There is a limit of $2,500 in claims per year.

Return protection: If you bought an item with the card and want to return it, but the store you bought it from won’t accept the return, you can get up to $500 per item refunded for a total of up to $1,000 total per year. You have up to 90 days after purchase to request this, and your store must have refused the return first. You’ll need to send the item in new condition to the benefits administrator to complete the claim.

Is it worth $95?

The Ink Business Preferred℠ Credit Card can be worth the $95 annual fee pretty easily, especially if you don’t already have access to Chase Ultimate Rewards points that you can transfer.

Let’s first consider if the Ink Business Preferred℠ Credit Card is worth $95 for someone who does not have another credit card that earns Chase Ultimate Rewards.

To break even, you must earn at least $95 worth in value from this card. Since most cards will earn you at least 1% cashback on purchases, you should really be able to earn at least $95 beyond the first percent back in order to break even.

If you are able to earn 19,000 Chase Ultimate Rewards points within a year, you at least will be breaking even on this card even considering the opportunity cost of a 1% back credit card.  This might seem like you need to spend a lot in order to earn that many points, and if you’re only spending in non-bonused categories it would require $19,000 in spending – possibly out of the question for even many small businesses.

Luckily the Ink Business Preferred℠ Credit Card offers bonus categories that can help your points earned add up pretty quickly.

Consider that you might spend $200 per month on cell phone/internet/cable and $500 per month on travel. From these purchases alone, you will earn 25,200 Chase Ultimate Rewards points within a year.

It’s quite possible to get double that value out of your Chase Ultimate Rewards points by transferring them the airline partners which would mean that you are already coming out ahead with bonus category spending alone.

Now, what if you do already have a credit card that earns Chase Ultimate Rewards like the Chase Sapphire Preferred® Card.

If you have a Chase Sapphire Preferred® Card, you already have the ability to earn 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases, so you need to discount that from your potential earnings. This means that you would only be earning one extra Ultimate Reward point per dollar spent on your travel purchases.

You also already have the ability to earn 1 UR per dollar spent on all other purchases, so those don’t count either.

What you’re really gaining in this case is the 3X category, so you would need to earn just enough from that category to earn the full 19,000 ‘break even points.’ You can consider the 3X category in full for purchases in the category of telecommunications and social media and search engine advertising, but you can only consider an extra 1X point for travel purchases.

How it stacks up

Whether the Ink Business Preferred℠ Credit Card makes sense for you over another card depends on your spending patterns. We’ll take a look at some alternatives based on the following monthly spending:

  • $1,000 airfare
  • $1,000 office supplies
  • $1,000 advertising
  • $1,000 dining
  • $1,000 other

With this spending pattern and only the Ink Business Preferred℠ Credit Card in your wallet, you would earn 9,000 Chase Ultimate Rewards points per month.

The best way to find out which will earn you more points is to plug your business spending habits into our calculator and you’ll be able to quickly and easily see how they stack up, factoring all of those point bonuses. But here’s how it stacks up on benefits.

vs United MileagePlus® Explorer Business Card

unitedbusiness170If you instead have the United MileagePlus® Explorer Business Card in your wallet, you’ll earn 2 miles per $1 spent on purchases at restaurants, gas stations, and office supply stores, 2 miles per $1 spent on tickets purchased from United, and 1 mile per $1 spent on all other purchases.*

With this card and the spending pattern above, you would earn 7,000 United miles per dollar spent. Not only are you earning less, but United miles are less valuable than Chase Ultimate Rewards points.

The information related to the United MileagePlus® Explorer Business Card has been collected by CompareCards and has not been reviewed or provided by the issuer of this card. This offer and/or promotion has since changed, expired, or is no longer available.

vs Ink Business Cash℠ Credit Card

inkpreferred170The Ink Business Cash℠ Credit Card lets you Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. According to the spending pattern above, you would earn $90 in cashback every month with the Ink Cash (9,000 Chase Ultimate Rewards points).

vs The Business Gold Rewards Card from American Express OPEN

Let’s say you choose airfare to earn 3X and advertising and computer purchases to earn 2X. We’ll also assume that one third of your office supply store purchases will also fall into the computer category. With this card, you would earn 8,333 Membership Rewards® every month according to the spending pattern outlined above, close to what you’d earn with the Ink Business Preferred℠ Credit Card, but not quite as good. The Business Gold Rewards Card from American Express OPEN also has a $0 introductory annual fee for the first year, then $175.

vs Capital One® Spark® Miles for Business

capitalonesparkThe Capital One® Spark® Miles for Business earns 2 Miles per $1 on every purchase, every day. If you spend $5,000 per month, you’ll earn 10,000 miles. While this is a great flat-rate card, these miles are nowhere near as valuable as Chase Ultimate Rewards points. The miles earned through Capital One are only worth one cent each.

Questions and Answers

What kind of business qualifies?

You don’t have to have a big or long established business to get a business credit card. If you sell things on eBay that you don’t use anymore or if you make soap and sell them at the local farmer’s market or to your friends, you have a business.

It’s okay if you don’t have history as a business or even if your business doesn’t yet make money, just make sure that you report accurate information on your credit card application. Plenty of business owners use a card to help set up a business before sales start coming in. And wanting to separate expenses is a reason to have separate personal and business accounts.

Does the card report to the credit bureau?

It depends. Typically, Chase will not report small business credit cards to the credit bureau unless the account is seriously delinquent.

Can you share points with others?

It is possible to share points in certain circumstances. In order to share points with someone from your Ink Business Preferred℠ Credit Card, they either need to be a member of your household or an owner of the business.

Can you combine points with Chase Sapphire Preferred® Card or Chase Freedom Unlimited®?

Yes, it is possible to combine points earned with the Chase Sapphire Preferred® Card and Chase Freedom Unlimited® or any other card that earns Chase Ultimate Rewards points.

Is it a Chip and PIN card?

No, theInk Business Preferred℠ Credit Card is not currently a Chip and PIN card.

Is it a MasterCard or Visa?

The Ink Business Preferred℠ Credit Card is a Visa.

Can you control employee spending?

Within your account summary, it is possible to easily add a limit to employee spending. From the dropdown menu, choose ‘Set Spending Limit.’

spendinglimit

From there, you will be able to select the cardholder you would like to set a limit for, and set it!

Can you get employee purchase alerts?

If you want to set up employee purchase alerts, you’ll have to do it in Chase’s app. Click the menu at the top of the main page and move the sliders to the right to turn on purchase alerts.

What happens to your points if you cancel the card?

If you cancel your Ink Business Preferred℠ Credit Card and have another Chase card that earns Ultimate Rewards points, nothing will happen to your points – just make sure you transfer your points to the other account first. If you do not have another credit card that earns Ultimate Rewards, you will need to transfer your Ultimate Rewards to one of Chase’s airline or hotel transfer partners, redeem them through Chase’s travel portal, or redeem them for cash before you cancel the card, otherwise you will lose your points.

Can you get the annual fee refunded?

If you decide to cancel your Ink Business Preferred℠ Credit Card, typically you can get the annual fee refunded if you are cancelling within 180 day of paying the fee.

What is the best introductory offer?

The introductory offer lets you earn 80,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening. This is an especially high bonus offer for the card because it is a new product and might not last.

Is there airport lounge access?

There is no lounge access with the Ink Business Preferred℠ Credit Card.

Can you move United miles to Ink?

No, you cannot move your United miles to Chase Ultimate Rewards points. You can, however, move your Chase Ultimate Rewards to United.

Do points count toward Companion Pass?

Chase Ultimate Rewards transferred to Southwest do not count toward the Southwest Companion Pass.

Can you get both a shopping portal and category bonus?

Yes, you can get both a Chase Ultimate Rewards shopping portal and category bonus.


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