Capital One Spark Cash Plus review

The new Capital One Spark Cash Plus – a revamped version of the Capital One Spark Cash for Business – has hit the ground running, offering the same generous flat cash back rate as well as new perks, no preset spending limit and a chance to earn back your annual fee each year you spend at least $150,000.

Even if you can’t spend enough to earn the annual fee refund, the card should hold fantastic value for the average small-business owner and easily stands as one of the best business cards on the market if you prefer the simplicity of flat-rate cash back.

But if you’re looking for payment flexibility, the Spark Cash Plus will disappoint. As a charge card, the Spark Cash Plus requires you to pay off your balance in full each billing cycle and carries no ongoing APR or 0% introductory APR offers (See Rates and Fees), making it of little use if you need to free up cash flow or chip away at business expenses over time.

See related: How do business credit cards work?

Why you might want the Capital One Spark Cash Plus

With an impressive cash back rate and variety of rewards redemption options, the Spark Cash Plus could be the card that helps your small business maximize rewards on everyday spending. If you prefer to earn cash back over travel points, the Spark Cash Plus is a good choice, allowing you to forgo the complicated math, redemption caveats and spending limits often found on rewards credit cards (Cash Plus cardholders can earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel).

The card may not make the most sense for more modest spenders, but if you plan to spend at least $30,000 per year, you’ll likely earn more with the Spark Cash Plus than you would with the typical no annual fee business card. The card also carries very minimal fees for a charge card and its annual fee should only make a small dent in your rewards.

Maximize rewards on everyday purchases

The Spark Cash Plus card retains the streamlined rewards structure of the legacy Spark Cash card: You’ll earn unlimited 2% cash back on all qualifying purchases, with no need to track spending or enroll in bonus categories.

This is one of the highest flat rewards rates you’ll find on a business rewards card, with most offering just 1.5% back on all purchases or 1% back on general purchases and 2% to 5% back in specific spending categories, like dining or travel.

This makes the Spark Cash Plus a solid choice both for small-business owners who want to keep things simple by earning cash back on all their eligible spending and for those who want to fill a gap in their rewards strategy by earning boosted cash back on spending outside their other cards’ bonus categories.

Depending on your spending, the Spark Cash Plus card’s 2% flat rate could even make it more valuable than some no annual fee business cards. For example, compare the card with the Capital One Spark Cash Select for Excellent Credit – which earns just 1.5% cash back but charges no annual fee (See Rates and Fees) – and you’ll find that the extra half-percent of cash back on the Spark Cash Plus more than makes up for its annual fee (See Rates and Fees) given a $48,000 estimated annual spend.

As you can see, even if you don’t spend the $150,000 required to earn the annual fee refund, the Spark Cash Plus card’s generous rewards rate can help you come out on top – as long as you use the card for most of your business spending.

Flexible rewards redemption

The Capital One Spark Cash Plus card’s lineup of redemption options offers solid flexibility, so redeeming cash back with the card should be about as simple as earning it.

Capital One offers a great mix of cash back redemption options for Spark Cash Plus cardholders, including choices for a statement credit, check, gift card or payment through Amazon.com or PayPal. You can even transfer your rewards to another Capital One account if you’d rather redeem for travel, potentially at a higher value (such as to the Capital One Venture Rewards Credit Card at a rate of $1 cash back to 100 Capital One miles).

There’s also no minimum threshold required to redeem your cash back – you can claim your rewards anytime, in any amount. You can even set cash back to be redeemed automatically once per year on a specified date or when you reach $25, $50, $200, $500 or $1,500 in rewards. Considering some issuers only let you redeem rewards for cash back as a statement credit, the Spark Cash Plus definitely earns points with its redemption variety.

Reasonable fees and no preset spending limit

Though the Spark Cash Plus card carries a somewhat high annual fee of $150 (See Rates and Fees), most small-business owners should be able to cover this cost with cash back earned via normal spending. In fact, you’ll only need to spend $7,500 with the card to reach $150 in cash back, so the annual fee shouldn’t pose too much of a risk if you use the card consistently. You can also have the fee refunded every year you spend $150,000 or more.

The card also carries no preset spending limit, offering you the flexibility to spend as much as you’ve shown you can afford. That means you won’t have to worry about hurting your credit score with a high credit utilization ratio on the Spark Cash Plus card (though you also won’t enjoy the credit score benefit of maintaining low credit utilization).

The Spark Cash Plus also charges no foreign transaction fee (See Rates and Fees), making it a great choice for international travelers and small businesses with employees overseas.

Tip: If you miss your payment due date, you’ll be charged 2.99% of the unpaid portion of your minimum payment as a late penalty (See Rates and Fees).

Solid card benefits

The Spark Cash Plus card’s main selling points are its terrific ongoing flat cash back rate and generous welcome bonus, but the card also carries a handful of noteworthy perks for small-business owners. While these can’t match the luxury benefits you’ll find on top-tier business travel cards, they should offer solid value, especially for big spenders.

• Get your annual fee refunded – You can get your $150 annual fee refunded every year you charge $150,000 or more to the card. Assuming you can meet the hefty spending requirement, this should make the card a terrific value.
• Free employee cards – You can add employee cards to your account for no additional charge. Their purchases will also earn 2% cash back and contribute to the spending totals required to earn the card’s sign-up bonus and offset the annual fee (See Rates and Fees).
• Travel and purchase protection – You’ll enjoy a suite of benefits, including travel and emergency assistance, extended warranty, MasterRental insurance, lost or damaged luggage reimbursement and purchase security. Purchase Assurance covers eligible purchases that need to be replaced, repaired or reimbursed for the first 90 days in the event of loss, damage, theft or fire. These are all useful travel insurance benefits, though not particularly impressive at this price point. Terms, conditions and exclusions apply. Refer to your Guide to Benefits for more details.
• Virtual card numbers – You can get an added layer of protection against fraud when using your card online with a virtual card number from Capital One. Virtual card numbers allow you to make online purchases without sharing your actual card number or paying through a third-party site like PayPal. This also gives you extra peace of mind in the event of a data breach at a company that’s used your virtual card number.

Why you might want a different card

The Spark Cash Plus offers a huge sign-up bonus and the potential to have your annual fee refunded, but meeting the required spending may be unattainable for the average small-business owner. Heavy spenders would need to meet more than the average yearly spend with the card to earn these rewards and you may want to consider other card options if you want to pay off a large purchase overtime since the Spark Cash Plus carries no 0% introductory APR (See Rates and Fees).

Plus, if you are seeking a business card with an extensive list of card benefits, you may not find it here. The Spark Cash Plus offers solid benefits like travel protections, free employee cards and virtual card numbers but unfortunately, that’s about as long as its benefits list gets.

Hard-to-reach sign-up bonus

One of the most impressive elements of the Capital One Spark Cash Plus card is its sign-up bonus, in which you earn a $1,200 cash bonus when you spend $30,000 in your first three months. While this is a valuable offer, it may be out of reach for many small-business owners. However, this could be useful for those who have upcoming starter costs that may meet the requirement.

A risky choice for modest spenders

While the Capital One Spark Cash Plus card’s generous 2% cash back rate can make it a great value for many small-business owners in spite its $150 annual fee (See Rates and Fees), it may prove costly for more modest spenders.

You may be better off with a no annual fee card if you don’t plan to put that much spending on a single card, even if it carries a lower rewards rate. Ignoring sign-up bonuses and cardholder perks, a no annual fee credit card with a 1.5% cash back rate will be more lucrative and less risky than the Spark Cash Plus if you charge less than $30,000 per year.

Check out this example, which shows how much you’d earn on a $24,000 spend (which wouldn’t offset the Spark Plus Card’s annual fee):

If your business spends heavily in a particular category, such as office supplies or telecommunications, you may also want to consider opting for a card that earns elevated rewards on those purchases – either instead of or in combination with the Spark Cash Plus card.

If you aren’t sure whether you’ll use the card enough to justify its annual fee, know that you can find plenty of business credit cards that charge a lower annual fee (or no annual fee) while still offering solid rewards value and other perks like a 0% introductory APR on purchases or balance transfers. Depending on your priorities, it may be worth sacrificing some rewards potential for a lower annual fee card with different benefits or more peace of mind.

Hard-to-reach annual fee refund

Though the card gives you a chance to have your $150 annual fee (See Rates and Fees) refunded each year you spend $150,000, that’s nearly four times the average small-business spending, based on data from Bankrate.

Compare this with a business card like the Ink Business Preferred® Credit Card from Chase, which only charges a $95 annual fee and offers 100,000 Ultimate Rewards points – worth $1,250 when redeemed for travel with Chase – after you spend $8,000 in your first three months. While this bonus is not nearly as high (and this is still a high spending requirement), it’s much more attainable.

See related: Credit cards with 100,000-point bonuses

Can’t carry a balance and no 0% introductory APR offer

The Spark Cash Plus card is a charge card, which means you’re expected to pay off your card balance in full each billing cycle. As such, it does not carry a regular APR and offers no 0% introductory APR (See Rates and Fees).

While this could help you avoid high-interest debt and ensure you keep up with payments, it means you won’t ever have the flexibility to carry a balance should you need to. This may be a deal-breaker if you’re looking for a business card to help you free up cash flow or pay off large business expenses over time.

A number of business cards offer introductory APRs on new purchases and not only allow you to chip away at expenses over 9 months or more, but also earn rewards on those purchases.

See related: Best 0% intro APR business cards

How does the Spark Cash Plus card compare to other business cards?

The Spark Cash Plus card delivers terrific value despite its annual fee, offering a large sign-up bonus, one of the best flat cash back rates you can find on a business card and a chance to have your annual fee refunded if you’re a big spender.

Even so, it may not be the best fit for every small-business owner. If your spending is more modest or if you spend heavily in a particular category, another card may offer better long-term value at a lower cost. Here are a few of our top picks:

Ink Business Preferred® Credit Card	The American Express Blue Business Cash™ Card	Brex Card
Rewards rate 3 points per dollar on travel, shipping, internet, cable, phone services and advertising purchases ($150,000 combined purchases yearly) 1 point per dollar on general purchases	Rewards rate 2% cash back on up to $50,000 in purchases per calendar year 1% cash back on all purchases after that Terms apply	Rewards rate 7 points per dollar on ride-share 4 points per dollar on travel booked via Brex Travel 3 points per dollar on restaurants and on Apple products purchased via Brex portal 2 points per dollar on recurring software subscriptions 1 point per dollar on other purchases
Welcome bonus 100,000 points if you spend $8,000 in first three months	Welcome bonus Earn a $250 statement credit after you make $3,000 in purchases in your first three months	Welcome bonus 50,000 in Brex Rewards points after you spend $9,000 in the first 30 days
Annual fee $95	Annual fee $0	Annual fee $0
Other things to know 25% higher point value when redeemed for travel through Ultimate Rewards No foreign transaction fee Free employee cards	Other things to know Flexible spending limit 0% introductory APR on purchases for the first 12 months from date of account opening (18.49%-26.49% variable APR thereafter)	Other things to know Comes with software discounts and credits, including a $5,000 credit for Amazon Web Services and $150 credit for Google Ads No personal guarantee required to apply Dynamic credit limit

Spark Cash Plus vs. Ink Business Preferred® Credit Card

Boasting a more attainable sign-up bonus than the Spark Cash Plus card, the Ink Business Preferred card also carries a lower annual fee and greater redemption flexibility. You can trade your Ultimate Rewards points for cash back at 1 cent per point, or redeem for travel through Chase and enjoy a 25% boost in point value. And while you’ll only earn 1 point per dollar on general purchases, the card’s bonus category rewards rates could offer terrific value if you spend heavily on travel, shipping, internet, cable, phone services and advertising purchases.

Spark Cash Plus vs. The American Express Blue Business Cash™ Card

The Amex Blue Business Cash card offers impressive long-term value for the typical small-business owner. You’ll enjoy the same 2% cash back rate on your first $50,000 in spending (after which it drops to 1% back) without an annual fee hanging over you. You can also take advantage of a 0% introductory APR on purchases for your first 12 months to chip away at expenses over time (after which a 18.49% to 26.49% variable APR applies), and you even have the option of spending over your credit limit if you qualify (terms apply).

Spark Cash Plus vs. Brex 30 Card

A great option for small-business owners and entrepreneurs who are in the market for a card that doesn’t require a personal guarantee, the Brex 30 Card offers a slew of bonus rewards categories and valuable perks, including discounts and credits with Amazon Web Services, Slack, Google Ads and more for no annual fee. The Brex 30 Card also carries a dynamic credit limit based on how much capital your company has raised and your company’s spending patterns.

How to use the Spark Cash Plus card:

• Use the card for all purchases, unless you’d earn more than 2% back with another card.
• Plan out large purchases in advance to give yourself the best chance of meeting the card’s sign-up bonus.
• Pay off your card balance in full each month, and be sure to pay on time to avoid a 2.99% penalty on any unpaid portion (See Rates and Fees).
• Get employee cards at no additional cost to help you earn even more rewards (See Rates and Fees).
• If you have a personal Capital One rewards card like the Venture and want to use cash back for travel, consider transferring your rewards to enjoy additional redemption flexibility.

Is the Spark Cash Plus card right for you?

The Spark Cash Plus card is a terrific option for small-business owners looking for a simple way to earn cash back on almost everything they buy. It should be an especially great fit for heavy spenders thanks to its annual fee refund and flexible spending limits, but the card’s generous flat cash back rate means even the average small-business owner shouldn’t have much trouble justifying the card’s annual fee.

That said, the card may not be worth it for more modest spenders. If you plan to put less than $30,000 on the card each year, you’ll likely be better off with a no annual fee card that earns 1.5% back on general purchases or bonus cash back in specific categories relevant to your business. And since the Spark Cash Plus is a charge card, it won’t be helpful should you need to carry a balance.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.