Points Intervention: Using a Cash-Back Business Credit Card
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In Points Intervention, I help people get their awards earning on track. This month I'm working with small-business owners — just in time for them to take advantage of the Chase Ink Plus Business card's current offer of 50,000 bonus points after a spend of $5,000 within the first three months.
Intervention: Christophe Carón Episode 2
This week I am working with Christophe Carón, owner and manager of Délice and Sarrasin, a crêperie in the West Village in New York City. He wants to choose the right business credit card for his spending and traveling patterns to maximize the accrual of points and miles, as well as benefits for his business. In yesterday's video, I learned some key facts about Christophe's needs and uses.
- The cafe uses ingredients imported from Europe on a monthly basis, so Christophe will need a credit card that avoids foreign transaction fees.
- Christophe flies Delta most often when traveling, and currently holds a Delta Platinum Card from American Express.
- The family-owned business is only four months old, so there are still start-up costs associated with running it. Christophe wants to run as much cash flow through a business credit card as possible to get the benefits of the spend.
In today's video, I have two main recommendations for Christophe.
If Christophe wants to stick with Delta, the Business Platinum Card® from American Express brings plenty of perks to the table. He would get lounge access when traveling, not only to Delta lounges but also to American Express's Centurion lounges. There's one at LaGuardia and there's one opening up this summer in Miami, both places that Christophe travels through.
This card has a $450 annual fee, which may seem like a lot, but every year you get $200 in airline fee rebates, and on many airlines you can get gift cards rebated to you. So it's really like paying $250 a year, plus that lounge access, which would normally cost $50 per visit, eventually makes that fee worth it if you're traveling several times a year. This card also carries perks at luxury hotels, which makes travel even sweeter. If Christophe learns how to leverage the perks, the Business Platinum card might make sense.
There are a few drawbacks to using this card, however. Christophe does want to have additional cardholders on the account, which comes with an additional $300 annual fee each. And also, as I often warn people, you don't want to put all your miles or points in one basket.
Because Delta has sadly changed the game in terms of how many miles it requires for awards, I recommend that Christophe avoid earning all of his miles with Delta. For that reason, I would not advise him to get a Delta business credit card. In fact, the best bet for Christophe is a cash-back credit card.
Capital One Spark Cash for Business
Capital One has a Capital One Spark Cash for Business that gives you cash bonuses just for signing up and meeting a minimum spend requirement. The annual fee is only $95 and it's waived the first year, and additional cardholders are free. For every dollar you spend you'll get 2 percent back, which is actually really valuable. When you compare that to getting one Delta SkyMile per dollar, it's better to get the cash back and book whatever flight you want on whatever airline you want, or even just add that cash to your bottom line. If you're spending a lot of money, especially when starting a small business, every dollar makes a difference. After all, cash gives you the most flexibility.
For Christophe to rake in some decent cash back for his spending, avoid foreign transaction fees and add cardholders with no additional annual fee, this card could be a great choice.
Tomorrow Christophe and I will talk about the benefits of paying utilities with a business credit card. And if you or your small business needs a Points Intervention, email intervention@thepointsguy.com.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $8,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.