Southwest® Rapid Rewards® Premier Business Credit Card review: A decent pick for small-business owners flying Southwest

Quick highlights

• Rewards rate: Earn 3X points on Southwest airlines purchases, 2X points on participating Rapid Rewards® hotel and car rental partners, local transit and commuting (including rideshares); 1X points on all other purchases
• Welcome offer: Earn 60,000 points after you spend $3,000 on purchases in the first 3 months your account is open.
• Annual fee: $99
• Purchase intro APR: None
• Balance transfer intro APR: None
• Regular APR: 20.99% - 27.99% Variable

Current welcome offer

New cardholders have a chance at a sign-up bonus of 60,000 points after spending $3,000 in the first three months after account opening. According to Bankrate’s latest miles valuations, Rapid Rewards points are currently valued at around 1.5 cents each when redeemed for flights. This could make the card's sign-up bonus worth approximately $900, depending on how you redeem those points.

This is an incredible value compared to the value you’ll get with the offers available on many other business travel cards with a similar annual fee. However, a few general-purpose business cards in this price range feature bonuses that, while a bit less valuable, offer rewards you can redeem for travel with multiple airlines, not just Southwest and its partners.

Rewards rate

The Southwest Rapid Rewards Premier Business Card offers a tiered-rewards rate on Southwest-related spending, travel expenses and other general purchases. Southwest Rapid Rewards points can be earned and redeemed in a variety of ways — on more than strictly airfare.

How you earn

The fastest way to earn points with the Southwest Rapid Rewards Premier Business Credit Card is to book flights through Southwest Airlines, which will net you 3X points. You’ll also earn 2X points on rideshares, transit and other eligible commuting expenses. Bookings with the airline’s Rapid Rewards® hotel and car rental partners will also earn 2X points, and you’ll score 1X points on all other purchases.

In addition, cardholders can depend on receiving 6,000 points every year on the anniversary of their account opening, regardless of how much they spend.

You can also earn points by using the Southwest Rapid Rewards shopping portal guide when making online purchases and by eating at restaurants that participate in the airline’s Dining Rewards program. Combined with the card’s Southwest and transit bonus categories, this gives you the opportunity to earn rewards on several legs of your journey.

How to redeem

Redeeming your Rapid Rewards points for Southwest flights is easy, and the best way to take advantage of your new stash of points. If you log into your Rapid Rewards account online and input your flight details, you can search flight availability and have your trip covered by your rewards balance (excluding taxes and fees). There are no restrictions or blackout dates when you redeem points for a seat, but the number of points you’ll need will depend on the airfare.

You may also redeem your points for international flights booked through a designated flight portal, hotel stays, rental cars and more. In addition to flights and travel purchases, you can redeem your points through the Southwest More Rewards portal, which allows Southwest credit card members to trade their points for gift cards to restaurants, department stores, popular retailers and other businesses. You may also contribute your points to select charities as well.

Since Bankrate's latest miles valuation estimated Rapid Rewards points to be 1.5 cents per point when redeemed for flights, the 3X rewards rate earns around 4.5 cents for every $1 spent on Southwest airline purchases and the 2X rewards rate earns around 3 cents for every $1 spent on transit and participating Rapid Rewards® hotel and car rental partners. 

However, the value of your points may vary based on factors like your destination, travel date and more. Non-travel redemption options may not net as much value, so it’s best to save your points for air travel. After all, there’s no rush since your Southwest Rapid Rewards points won’t expire as long as your account is open.

The Southwest Rapid Rewards Premier Business Credit Card includes many appealing perks and benefits that will appeal to business travelers who frequently fly Southwest.

Cardmember anniversary bonus

Perhaps the most compelling feature of this card is the 6,000 bonus points you’ll receive every cardmember anniversary with no spending requirement. Those points could translate to approximately $90 in value toward future flights (based on a value of 1.5 cents per point), which almost offsets the card’s annual fee entirely.

Travel and purchase protections

The Southwest Rapid Rewards Premier Business Credit Card includes valuable travel and purchase protections to give you peace of mind on all your trips.

You’ll get extended warranty protection and purchase protection that may cover you in the event of theft or damage of new items, plus a few other handy travel perks like auto rental collision damage waiver coverage, roadside dispatch and travel accident insurance.

The Southwest Rapid Rewards Premier Business Credit Card charges an annual fee of $99. Unlike some airline credit cards, such as theCiti® / AAdvantage Business™ World Elite Mastercard®, as the Southwest Rapid Rewards Premier Business Credit Card will not waive this fee for your first year. You won’t pay any foreign transaction fees, however, and you can also add employee cards at no additional cost.

The annual fee shouldn’t be a big issue, though, since the anniversary bonus and complimentary EarlyBird Check-Ins can make up for the cost each year. Otherwise, you can offset the annual fee by spending $2,200 each year on Southwest purchases or $3,300 per year across your 2X-point categories (based on a value of 1.5 cents per point).

There is no 0 percent intro APR offer for new purchases or balance transfers, which is normal for a premium travel card, but would’ve been a beneficial perk for small business owners who need time to pay down their balance without accruing interest, as the ongoing APR with this card is 20.99% - 27.99% Variable. The lower end of this APR range is on par with the high current average interest rate.

Southwest Premier Business Card vs. Southwest® Rapid Rewards® Performance Business Credit Card

For business travelers who frequently fly Southwest, the Southwest Rapid Rewards Premier Business Credit Card is an obvious choice. However, its higher-caliber sibling, the Southwest Rapid Rewards Performance Business Credit Card, could be a better choice if you spend enough to make up for its $199 annual fee or want a bigger head start toward Southwests’ valuable A-List Status.

The Performance Business card has a leg up over the Premier Business thanks to its boosted Southwest rewards rates, 2X rewards rate on telecom and select advertising services, plus its slightly richer benefit offerings. These perks are well worth the $100 higher annual fee: You can squeeze plenty of value from the inflight WiFi credits, 9,000-point anniversary bonus, expedited airport screening service fee credits and four annual Upgraded Boardings.

Overall, if you don't mind paying more for the annual fee in exchange for a better rewards rate and benefits, the Performance Business Card is the clear winner. However, if you don’t fly enough to justify the $199 annual fee, the Premier Business Card is a better choice.

Southwest Premier Business Card vs. Citi® / AAdvantage Business™ World Elite Mastercard®

If you don’t mind missing out on Southwest-specific perks, you may want to consider the Citi® / AAdvantage Business™ World Elite Mastercard®. Unlike the Southwest Premier Business Card, the Citi / AAdvantage Business card offers free first checked bags for you and up to four companions traveling on your reservation, priority boarding and 25 percent off inflight Wi-Fi, food and drink. The card also charges a $99 annual fee, but it’s waived for the first year.

The Citi / AAdvantage Business earns 2X miles on American Airlines purchases as well as on cable, satellite, telecommunication, car rental and gas station purchases, plus 1X miles on other purchases. You can redeem AAdvantage miles with American or one of the airline's oneworld alliance partners, giving you more flexible flight options than with the Southwest Premier Business Card.

As far as which card is better, the Citi / AAdvantage Business card definitely has better perks, but it all depends on your personal preferences. What would you prefer to have: an American Airlines First Class ticket and in-flight discounts or a Southwest Companion Pass so that you can fly with a friend? 

Best cards to pair with this card

If you want another card that earns rewards on everyday spending and lets you redeem points for Southwest flights (as well as bookings with other airlines), consider the Ink Business Preferred card.

This card, which comes with a $95 annual fee, earns 3X points on travel, internet, cable and phone services as well as shipping and advertising purchases made with social media and search engines (up to $150,000 in combined purchases each account anniversary year; 1X points thereafter). You can not only redeem rewards with nearly any airline through Chase’s travel portal, but also transfer to Southwest Airlines. This flexibility and Chase’s long list of transfer partners make the Ink Business Preferred a great option for pairing with the Southwest Premier Business card.

The Ink Business Unlimited® Credit Card could also be a valuable partner card thanks to its boosted 1.5 percent cash back rate on all purchases. Although marketed as a cash back card, it actually earns Chase Ultimate Rewards points, which can be redeemed for travel with many airlines and hotels or transferred to several airline loyalty programs, including Southwest Rapid Rewards. That means it could come in hand if you ever need to top off your Rapid Rewards points balance or want to earn rewards on business expenses that fall outside your Southwest card’s categories.

The Southwest Rapid Rewards Premier Business Credit Card can easily help you earn Rapid Rewards points that can be redeemed for Southwest flights. But, if you need more flexibility with your points or are looking for a wider array of benefits, you might want to consider a general-purpose business travel card. There are many cards that may help you earn points faster with a comparable annual fee — particularly Chase credit cards, which earn Ultimate Rewards points that transfer to Southwest at a 1:1 ratio.