Credit Card Showdown: Capital One Spark Cash for Business vs. Spark Miles for Business
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The Spark line of business credit cards from Capital One are built for small-business owners craving lucrative rewards for everyday non-bonus spending. The two cards in the family with annual fees — the Capital One® Spark® Cash for Business and the Capital One® Spark® Miles for Business — are solid cards that are both currently offering massive limited-time sign-up bonuses. If you’re debating which one to apply for, ask yourself these two questions:
- Would I rather have cash to put back into my business, or potentially reward myself with a vacation (or use miles for business travel)?
- How much effort am I willing to put into learning about advanced redemption schemes?
The answers to these questions will help determine which Spark card is best for you, but regardless, both of these cards land on TPG‘s current list of best business credit cards and have a lot in common. Let’s take a look.
|Capital One Spark Cash for Business||Capital One Spark Miles for Business|
|Annual fee||$95 (waived for the first year)||$95 (waived for the first year)|
|Earning rates||2% cash back on all purchases||5 miles per dollar on hotels and car rentals booked through Capital One Travel
2 miles per dollar on all purchases
|Sign-up bonus||For a limited time, earn $500 after you spend $5,000 in the first three months. Plus, earn an additional $1,500 after you spend $50,000 in the first six months.||For a limited time, earn 50,000 miles (worth $700 based on TPG’s valuations) after you spend $5,000 in the first three months. Plus, an additional 150,000 miles after you spend $50,000 in the first six months.|
|Value of rewards||N/A||1.4 cent per mile|
Each card charges the same annual fee and waives that fee during the first year of card ownership. Each also comes with authorized user cards for employees for no fee. The biggest difference is in the redemption value, but let’s walk through each of them.
The Spark Cash card comes with a $500 cash bonus after you meet the $5,000 minimum spending requirement within three months, and another $1,500 cash bonus after you meet the $50,000 spend requirement in the first six months. Cash back can be redeemed in the form of a statement credit or a check.
The Spark Miles card earns 50,000 miles after you meet the same $5,000 spending requirement in the first three months and 150,000 miles after you spend $50,000 in the first six months. The miles can be used to book travel directly through Capital One, to erase a previous travel purchase made within the last 90 days at a value of 1 cent per mile or transferred to one of Capital One’s airline transfer partners.
Depending how you redeem your miles, you could get significantly greater value from them by leveraging transfer partners. That’s why TPG values Capital One miles at 1.4 cents apiece, which makes the welcome bonus on the Spark Miles card worth $700. However, if you maximize the Spark Miles sign-up bonuses and earn the full 200,000 miles, you’ll have a stellar $2,800 worth of rewards, based on TPG’s valuations. The icing on the cake is that with both of these cards, you’ll also earn a significant haul while spending your way to the full welcome bonus, since you’re getting at least 2% cash back (on the Spark Cash) or 2x miles (on the Spark Miles) for all your purchases. That means after spending $50,000 on regular business purchases, you’ll walk away with 300,000 total miles or $3,000 cash back.
Further reading: Best Ways to Redeem 300,000 Capital One Miles
For the Spark Cash, you’ll earn 2% cash back on all purchases. That’s a pretty standard return, so you can use this card to maximize non-bonus spending and make out OK. The Spark Miles, on the other hand, earns 2 transferable miles per dollar on everyday business purchases. Since we value Capital One miles at 1.4 cents apiece, the Spark Miles effectively offers a 2.8% return on all spend.
On top of that, the Spark Miles card recently added a bonus category. You’ll now earn 5 miles per dollar spent on hotel and car rental bookings made through Capital One travel. That’s a pretty great return, though keep in mind when booking hotels through a travel portal, you usually won’t earn elite credit or have your elite benefits honored on the stay. So if you chase hotel elite status as part of your business travel, this new bonus category might not be quite as lucrative.
Here’s the big difference between the two cards. As mentioned earlier, rewards from the Spark Cash can be redeemed for a statement credit or a check. You can set up automatic redemptions at a set time each calendar year or when you hit a specific dollar figure in earned cash back — very straightforward. You can also redeem for credits for previous purchases or for gift cards, although redemption values vary.
With the Spark Miles, you can redeem your miles at a fixed value of 1 cent apiece by booking travel directly through Capital One or erasing a previous travel purchase made within the last 90 days — as with cash back, this redemption method is very simple. If, on the other hand, you enjoy the thrill of finding and booking high-value premium-cabin awards, you could squeeze much more value from your points by transferring them to Capital One’s airline transfer partners.
Miles transfer to each of the following partners at a 2:1.5 rate, except for Emirates, JetBlue and Singapore which transfer at a 2:1 ratio. In many ways this lets you think of the Spark Miles card as earning 1.5x partner airline miles per dollar spent.
|Aeromexico Club Premier||Instant|
|Air Canada Aeroplan||Instant|
|Air France-KLM Flying Blue||Instant|
|Cathay Pacific Asia Miles||5 business days|
|Etihad Guest||24-hour turnaround|
|EVA Infinity MileageLands||36-hour turnaround|
|Hainan Fortune Wings Club||36-hour turnaround|
|Qantas Frequent Flyer||24-hour turnaround|
|Qatar Airways Privilege Club||24-hour turnaround|
|Singapore Airlines KrisFlyer||36-hour turnaround|
These transfer partners span all three major alliances and are useful whether you’re interested in long-haul premium cabin travel or multiple shorter domestic flights. For example, you could book a Lufthansa first-class award seat for 116,000 Capital One miles through Avianca LifeMiles or an American Airlines business-class seat to Europe for about 67,000 Capital One miles through Etihad Guest.
Neither of these cards charge foreign transaction fees, which comes in handy if you travel internationally. Both cards also come with identical Visa Business benefits, including auto damage and collision protection and purchase protection.
|Capital One Spark Cash for Business||Capital One Spark Miles for Business|
|Rental car insurance||Primary if the rental is for commercial or business purposes; secondary if for personal reasons||Primary if the rental is for commercial or business purposes; secondary if for personal reasons|
|Lost luggage reimbursement||Up to $3,000 per person||Up to $3,000 per person|
|Travel accident insurance||$250,000 for common carrier loss-of-life benefit; $125,000 for loss of a hand or foot, sight of one eye, speech or hearing||$250,000 for common carrier loss-of-life benefit; $125,000 for loss of a hand or foot, sight of one eye, speech or hearing|
|Purchase protection||Up to $500 per claim and up to $2,500 per year||Up to $500 per claim and up to $2,500 per year|
With both cards, you can receive custom itemized quarterly and year-end summary reports to help you plan your budget.
If you lean toward travel spending and are willing to put time into figuring out how to redeem miles for maximum value, your answer is the Spark Miles, a transferable points-earning credit card. Otherwise, the Spark Cash is a cash-back credit card that’s solid for everyday business expenses but won’t get you outsized value when it comes to travel.
Either of these cards could make sense for your business, especially if you’re able to meet the $50,000 spending requirement in the first six months to earn the significantly increased sign-up bonuses. You’ll just need to judge how you want to collect your hard-earned rewards. If it’s travel rewards you’re after, the Spark Miles would be the no-brainer. The beauty of the card is that it doesn’t force you to make a serious time commitment up front as you will earn a minimum of 2% back on every purchase you make even if you don’t utilize the airline transfer partners. However, if you’d rather use your rewards toward putting money back into other business expenses, the Spark Cash might be the better pick for you.
A reminder: We don’t know how long the two cards’ elevated sign-up bonuses will be around. So if you’re interested, you’ll want to apply for the Capital One Spark Miles for Business or Capital One Spark Cash for Business sooner rather than later. This is one of the most valuable bonuses we’ve ever seen, and if your business is able to meet the lofty $50,000 spending requirement you should strongly consider adding one of these cards to your rotation.
Additional reporting by Mike Cetera.
LIMITED TIME OFFER: Earn up to 200,000 bonus miles with this business card, plus 5x miles on hotels and car rental booking through Capital One Travel, and 2x miles on all other purchases.
- Limited Time Offer: Earn up to 200,000 bonus miles worth up to $2,000 to spend on travel—flights, hotels and more
- Earn 50,000 bonus miles when you spend $5,000 in the first 3 months and earn 150,000 bonus miles when you spend $50,000 in the first 6 months of your account opening
- Earn unlimited 2X miles per dollar on every purchase, everywhere, no limits or category restrictions, and miles won't expire for the life of the account
- Earn 5X miles on hotel and rental car bookings through Capital One Travel℠ using a Spark Miles card
- Transfer your miles to 10+ leading travel loyalty programs like JetBlue™, Air Canada, and Emirates™
- Redeem your miles instantly for any travel-related purchases, from flights and hotels to ride-sharing services
- Fly through security with one statement credit for either the $85 TSA Pre✓® application fee or the $100 Global Entry application fee
- $0 intro annual fee for the first year; $95 after that