The Ink Business Cash Credit Card vs. The Ink Business Preferred Credit Card

Being an entrepreneur or owning a small business can be stressful enough without adding financial worries to the equation. Access to a good business credit card can help support business goals, alleviate cash crunches and earn rewards on essential business spending. If your card can help secure protections for things like travel, cellphones and other purchases, that is even better.

In general, Chase has a great selection of business cards, all of which come with benefits for small business owners. Below, we compare two of its most popular business cards: the Ink Business Cash® Credit Card and the Ink Business Preferred® Credit Card.

Essentially, the Ink Business Cash Credit Card works for businesses with moderate annual spending, and it provides the opportunity to earn rewards without paying an annual fee. The Ink Business Preferred Credit Card works better for businesses that spend more on travel and in select business categories and can easily offset the modest annual fee.

Main details

Ink Business Cash vs. Ink Business Preferred highlights

There are a few finer details to pay attention to in this card comparison, so let’s take a look at some important card features to help you choose the card that works best for your business needs.

Welcome bonus winner

Ink Business Preferred® Credit Card

• Why it won

  With the Ink Business Preferred, you can earn 90,000 points after spending $8,000 in the first 3 months of account opening. If you redeem the welcome bonus for travel through Chase Ultimate Rewards, your bonus points are worth $1,125 since points are worth 1.25 cents per point when redeemed for travel through the issuer’s portal.

  The Ink Business Cash offers a tiered welcome bonus worth up to $750 in bonus cash back (in the form of 75,000 Ultimate Rewards points). You’ll earn $350 in bonus cash back after making $3,000 in purchases during the first 3 months after opening your account. You can earn an additional $400 in bonus cash back for making $6,000 in purchases during the first 6 months your account is open. In terms of dollar amount, that’s lower than the Ink Business Preferred. Additionally, those points are only worth $.01 each if redeemed for travel through Chase’s portal — unless you combine them with a premium Chase card’s earned points.

  However, if you’re not sure you can spend the $8,000 to earn the Preferred card’s bonus, the Ink Cash card’s welcome bonus could be more attainable for you.

Rewards rate winner

Ink Business Preferred® Credit Card

• Why it won

  For the Ink Business Cash, you’ll earn 5 percent cash back at office supply stores and on internet, cable and phone services (on the first $25,000 in combined purchases each account anniversary year, then 1 percent) and 2 percent cash back on restaurant and gas station spending (again, on the first $25,000 in combined purchases each account anniversary year, then 1 percent). All other spending will earn 1 percent cash back. Those $25,000 spending caps on each of the card’s bonus categories put a damper on how much cash back you can earn each year.

  The Ink Business Preferred offers 3X points on travel and select business categories on up to $150,000 each account anniversary year, along with 1X points on all other spending. Once you’ve reached that $150,000 limit, you’ll earn 1X points in these categories. For reference, here are the select business categories that earn 3X points:

  • Travel
  • Shipping purchases
  • Internet, cable and phone services
  • Advertising purchases made with social media and search engines

  Even with the Ink Business Preferred’s lower 3X points rate on select business spending, we think you’ll earn more with this card. The Ink Business Preferred provides more bonus categories and a higher annual spending limit, which makes it the winner in this area. That said, if your business doesn’t routinely spend in the 3X categories but DOES spend in the 5X categories offered by Ink Business Cash, you’d likely be better off with that card.

Annual fee winner

Ink Business Cash® Credit Card

• Why it won

  The Ink Business Cash comes with no annual fee. However, the $95 annual fee for the Ink Business Preferred will give you access to additional benefits and perks that could more than justify the fee. Still, if saving money on fees is your goal, then the Ink Business Cash is the better choice.

Foreign transaction fee winner

Ink Business Preferred® Credit Card

• Why it won

  The Ink Business Cash has a 3 percent foreign transaction fee. The Ink Business Preferred has no foreign transaction fees, making it a better card for business travel overseas or business purchases in foreign currencies.

Which card earns the most?

In most cases, you stand to earn much more with the Ink Business Preferred than with the Ink Business Cash, even when you factor in the annual fee. The caveat is that your business must spend a significant amount on an annual basis and in the card’s bonus categories to earn boosted rewards.

This could be an easy task, depending on your business. For instance, an online business could easily hit the Ink Business Preferred’s spending limits on 3X rewards for shipping and social media advertising alone. If your business depends on travel and you cover employees for business trips, reaching the $150,000 spending limit on the boosted rewards may be no trouble, as well.

Ink Business Cash vs. Ink Business Preferred spending example

The Ink Business Cash card has two bonus category earning rates: 5 percent and 2 percent, each of which is capped at $25,000 in combined purchases per account anniversary year. If you reach these limits each year, you could earn:

• $1,250 back for the 5 percent back category
• $500 back for restaurant and gas spending

Add in your maxed out welcome bonus of $750, and you’ll earn about $2,500 in cash back for the first year and $1,750 back in the following years (not including any additional spending made at the 1 percent rewards rate). Remember that all of this cash back accumulates as Ultimate Rewards points.

With this card, there’s no annual fee to subtract, so your cash back is all profit. As long as you pay your balance off each month, you’ll avoid paying interest fees, increasing the value of this card even more.

For the Ink Business Preferred, the rewards rate for the bonus categories is a tad lower at 3X points, but the annual spending limit is much higher. If you make $150,000 in combined eligible purchases each year, you could earn 450,000 Chase Ultimate Rewards points.

Although you could redeem these points for about $4,500 in cash back, if you redeem them for travel through the Ultimate Rewards travel portal, your points are worth $5,625. Add the 90,000-point welcome bonus, and your rewards would be worth $5,400 in cash back — or $6,750 in travel through the portal — for the first year of card membership.

If you subtract the $95 annual fee, you’ll still net between $5,305 and $6,655 in rewards value with the Ink Business Preferred during the first year. And after the first year’s bonus, you’ll still earn between $4,405 ($4,500 minus the $95 annual fee) and $5,530 ($5,625 minus the $95 annual fee) in rewards.

Obviously, this scenario requires you to max out your spending in each card’s respective bonus categories. Take a look at your business’ unique spending to determine with which card you could earn the most. 

Why should you get the Ink Business Cash?

You should consider the Ink Business Cash if you have moderate business spending each year ($25,000 or less in each of the designated bonus categories) and don’t need travel rewards or perks.

• Additional benefits

  The Ink Business Cash benefits include:

  • 10 percent business relationship bonus: If you have both the Chase Ink Business Cash and a Chase Business Checking account, you’ll earn a 10 percent bonus on all the cash back you earned during the first year you have the card. This offer is only available to Ink Business Cash cards that are opened between March 2024 and November 2024.
  • 0 percent intro APR: This card features a 0 percent introductory APR on purchases for 12 months. After this term is over, you’ll pay 18.49 percent to 24.49 percent variable APR. This could be useful if you have a large purchase you need to pay for over time.
  • Purchase protection: You’ll enjoy purchase protection that covers new purchases for up to 120 days against damage or theft (up to $10,000 per claim and $50,000 per account).
  • Extended warranty protection: You’ll get an additional year of extended warranty coverage when you make an eligible purchase with your card. The extended warranty applies to qualifying warranties of up to three years.
  • Auto rental collision damage waiver: This primary car rental coverage means your rental vehicle is covered up to the cash value of the vehicle in the event of theft or a collision in the U.S. or abroad.
  • Free employee cards: If you have employees, you’ll get employee cards at no additional cost with the ability to set individual spending limits for them.

• Redemption options

  You can redeem rewards as cash back, gift cards, travel through Chase Ultimate Rewards or merchandise when you pay with points for select products or services. You can also combine points with another Chase card that earns Chase Ultimate Rewards points, so you can redeem your rewards for travel with Chase’s transfer partners. While the Ink Business Cash doesn’t allow you to transfer rewards to Chase partners on its own, when combined with a premium card, it can still play a role as a part of a travel rewards card strategy.

• Recommended credit score

  You’ll need a good to excellent credit score of 670 to 850 to qualify for this card.

Why should you get the Ink Business Preferred?

The Ink Business Preferred card is best for businesses that spend more per year and in the 3X categories. Maximize your rewards potential by hitting the $150,000 annual bonus category spending limit and redeeming your rewards for travel.

• Additional benefits

  The Ink Business Preferred offers a number of benefits:

  • Free employee cards: Like the Ink Business Cash, you’ll get free employee cards and the ability to set individual spending limits for them.
  • Trip cancellation/interruption insurance: Prepaid or nonrefundable travel expenses (including passenger fares and hotels) paid with the card can be reimbursed up to $5,000 per person and $10,000 per trip in the event of covered situations like sickness or severe weather.
  • Auto rental collision damage waiver: Pay for your auto rental vehicle with your card, then decline the rental agency’s insurance. From here, you’ll get primary coverage up to the cost of the vehicle in the event of theft or collision.
  • Extended warranty protection: Eligible purchases with U.S. manufacturer’s warranties of three years or less are protected for an additional year.
  • Purchase protection: New purchases are covered for 120 days against damage or theft for up to $10,000 per claim and $50,000 per account.
  • Cellphone protection: Cardholders and the employees listed on the monthly cellphone bill can get up to $1,000 per claim (maximum of 3 claims in a 12-month period, $100 deductible per claim) in cellphone protection against covered theft or damage.

• Redemption options

  With the Ink Business Preferred, you can redeem points for:

  • Travel booked through Chase Ultimate Rewards
  • Transfers to Chase airline and hotel partners
  • Cash back in the form of a statement credit or direct deposit
  • Gift cards
  • Shopping with points at eligible merchants like Amazon and PayPal

• Recommended credit score

  As with the Ink Business Cash card, you’ll need good to excellent credit (score of 670 to 850) to qualify for this card.

The bottom line

Both the Ink Business Cash Credit Card and the Ink Business Preferred Credit Card offer business owners the chance to earn rewards on their typical business spending. While the Ink Business Cash has no annual fee and a lower spending limit on its top rewards categories, the Ink Business Preferred has a higher spending limit in bonus categories, better points value for travel and a $95 annual fee.

The card you choose should depend on the stage your business is in. If you own a smaller business that doesn’t hit $150,000 in annual spending and you have no need for travel perks, then the Ink Business Cash card might be a better choice.

However, if you spend at least $150,000 each year in select bonus categories and value travel perks, the Ink Business Preferred might be worth it. Keep in mind, though, that because these cards are in the same card family and offered by the same issuer, you’ll have the option to upgrade or downgrade your card between products, if needed.