|Business Rating:||3.7 / 5|
In a Nutshell:
The Divvy Business card boasts a unique rewards program and savvy expense tracking tools, but you’ll only enjoy impressive rewards rates if you pay your bill more than once per month.
Average Yearly Rewards Value:
$1,147 (based on estimated average rewards rate and $48,000 annual spend)
N/A (charge card)
Other Notable Features: Unique money and card management solutions for business owners.
The Divvy Business Card is unique in more ways than one, making it an interesting card in the business card landscape. One unique aspect of the card that may appeal to credit users is the fact it gives you more points when you pay your bill off more often than the usual once per month, in turn rewarding responsible and proactive credit usage.
Cardholders can also use this card to make spending more convenient and trackable for their small business, and they can set employees up with authorized user cards that help them earn rewards on more purchases. Better yet, this card lets the primary user set credit limits and budgets for individual employees who don’t need unlimited access to corporate funds.
Available for small and medium-sized businesses and people with very good or excellent credit, the Divvy Business Card also comes with very few fees. However, it’s worth noting that this business card is a charge card, so you have to pay your balance in full each month.
If you’re looking for a new business credit card that lets you earn up to 7 points per dollar on some types of purchases, then the Divvy Business Credit Card may be right for you. But if you’re hoping to carry a balance month-to-month, you may want to consider other card options that don’t require the full balance paid each month.
Why you might want the Divvy Business Credit Card
With no annual fees, no monthly fees, no hidden fees and lucrative rewards that increase when you pay your bill more than once per month, what’s not to love? There are several reasons to consider the Divvy Business Card, including its dynamic features for small businesses who need to track and monitor their employee purchases.
Earn up to 7 points per dollar in bonus categories
The Divvy Business Credit Card offers an interesting rewards program and they even encourage gamification by doling out more points based on when you pay your bill. Here’s how this card’s rewards program works:
If you pay your bill monthly, you’ll receive:
- 2X points on restaurants
- 2X points on hotels
- 1.5X points on recurring software subscriptions
- 1X points on everything else
If you pay your bill semi-monthly, on the other hand, you’ll receive:
- 4X points on restaurants
- 3X points on hotels
- 1.75X points on recurring software subscriptions
- 1X points on everything else
Here’s where things get really interesting. If you pay your bill on a weekly basis, you can earn:
- 7X points on restaurants
- 5X points on hotels
- 2X points on recurring software subscriptions
- 1.5X points on everything else
This earning structure obviously favors businesses that can pay their bill early each month, but it’s easy to see the huge advantage you can gain if you happen to fall into that category.
No annual fee
The Divvy Business Credit Card is surprisingly low on fees. There is no annual fee and there are no monthly fees or application fees. You won’t pay a fee for employee cards or foreign transaction fees, either.
Expense planning and tracking tools
The Divvy Business Card also makes it easy to track employee spending and set limits on their budgets so they don’t go over their allotted amount. Budgets in Divvy let you set individual spending limits for each employee card, so you can set different budgets for workers based on their regular expenses and responsibilities. In the meantime, you can also use one platform to see where every penny your business spends has been going, and which card each transaction is tied to. This can help you find out if any of your workers are charging questionable expenses to their Divvy card right away.
The Divvy Business Card also lets employees request funds from the primary cardholder. If funds are approved, they are immediately available to spend on their employee card.
Why you might want a different card
Since the Divvy Business Card isn’t offered by a major card issuer like Chase or American Express, the rewards you earn won’t be as flexible or valuable. This card also comes without many of the travel perks and purchase protections top business credit cards include for cardholders.
Rewards are limited and comparatively mediocre
While earning up to 7X points on restaurant purchases sounds great, you should know that Divvy rewards aren’t as valuable as points you’ll earn with other cards. In fact, the card issuer says 100,000 points earned with the Divvy Business Card are worth:
- $1,000 in travel booked directly with Divvy
- $520 in cash back
- $510 in gift cards
- $490 in statement credits.
This means each point you earn with Divvy is worth .49 cents to 1 cent each at most. By contrast, business cards like the Ink Business Preferred® Credit Card let you earn points that are worth up to 2 cents each and potentially more.
Unfortunately, your rewards won’t be nearly as flexible, either. Some popular programs like Chase Ultimate Rewards and American Express Membership Rewards let you transfer your points to airline and hotel partners, yet the Divvy Business Card only lets you use rewards to book travel through their own portal. Flexibility like this goes a long way, especially for business owners who are already loyal customers of a preferred airline, hotel chain or who want the convenience of booking travel in a way that’s most suited to their needs. A host of issuers have rewarding points as well as flexible redemption options that enable business owners to have a firmer grasp over where their money is spent and how they can spend it, and they won’t have to worry about the limitations that an issuer’s portal may have.
Finally, it’s worth noting that the Divvy Business Card doesn’t offer a sign-up bonus or welcome offer of any kind. This is an especially disappointing shortcoming on a card in a landscape that is full of other options with generous sign-up bonus and points programs that are more rewarding.
You may want to carry a balance
Since the Divvy Business Card is a charge card, you can’t carry a balance from one month to the next. This means you can use the card to make purchases more convenient, but that you can’t use it as a short-term loan in a pinch.
While it’s nice to be financially prepared for anything when it comes to business expenditures, you can’t predict when you’ll need more cash than you have on hand. The convenience of carrying a balance on a credit card makes for a comfortable safety net. If for any reason you need to carry a balance in the coming months, check out other business credit cards, including ones that give you 0% APR on purchases for a limited time.
You want travel perks
Finally, remember that the Divvy Business Card doesn’t come with some of the travel benefits of competing cards like The Business Platinum Card® from American Express. For example, you won’t qualify for any annual travel credits, nor will you get a fee credit for Global Entry or TSA PreCheck membership or access to airport lounges.
How does the Divvy Business Card compare to other business cards?
One major difference between the Divvy Business Card and other business cards is the fact that the Divvy card is a true charge card. There were once many other charge cards for business on the market, including plenty of options from American Express. However, card issuers have moved to more flexible payment options over time, and even Amex is offering a Pay Over Time feature for most of their former charge cards.
Outside of this difference, the chart below shows how three other credit cards for small business compare.
|Rewards rate||Rewards Rate|
Earn 1.5% cash back on all purchases
Earn 5% cash back on hotels and rental cars booked through Capital One Travel
Earn 1.5% cash back on all purchases
100,000 bonus points after you spend $15,000 on purchases within three months of account opening
$750 in bonus cash after you spend $6,000 on purchases within three months of account opening
$500 bonus cash when you spend $4,500 on purchases within three months of account opening
|Other things to know||Other things to know||Other things to know|
Divvy Business Card vs. Ink Business Preferred® Credit Card
The Ink Business Preferred offers fewer points on purchases made in its bonus categories, yet rewards you earn with this card are more flexible and valuable. For example, you can use Chase Ultimate Rewards points for statement credits and gift cards at a rate of one cent per point, and you can get 1.25 cents per point when redeeming for travel through Chase. You can also transfer points to Chase airline and hotel partners at a 1:1 ratio, then get up to 2 cents per point in value or more depending on how you redeem.
The Ink Business Preferred also comes with a very generous sign-up offer that is worth $1,250 in travel booked through Chase. Cardholders also get benefits like primary auto rental coverage when renting a car for business purposes, trip cancellation and interruption insurance, cell phone protection, purchase protection against damage and theft and extended warranties. However, it’s important to note that a $95 annual fee applies.
However, in rewards value alone, the amount you could earn with the sign-up bonus on the Ink Business Preferred exceeds the reward value of 100,000 points earned with your Divvy Card if redeemed for travel through the issuer’s portal. If you spend $14,286 at restaurants on your Divvy Card while paying what you owe on the card weekly, you’ll earn 100,000 points no matter how quickly or slowly or spend. This is worth $1,000 in travel through Divvy’s portal. But if you spend $15,000 with the Ink Business Preferred card within the span of three months after account opening, you’ll be awarded 100,000 points worth $1,250 in travel through the Chase Ultimate Rewards portal in addition to any category-specific rewards points.
If you’re anticipating a spree of heavy spending in the coming months, consider a card that offers a sign-up bonus over one that doesn’t as it can really boost your rewards.
Divvy Business Card vs. Ink Business Unlimited® Credit Card
The Ink Business Unlimited is comparable to the Divvy Business Card since neither one charges an annual fee. However, the Ink Business Unlimited offers a lower rewards rate of 1.5% cash back on everything you buy. New cardholders can also earn a $750 cash bonus if they can spend $6,000 on purchases within three months of account opening. While the rewards rate is markedly lower than on the Divvy card, points are valued a bit more with Chase on a number of redemption options.
This card is also a traditional business credit card, so you can carry a balance when you need to. You even get 0% intro APR on purchases for 12 months, followed by a variable APR of 17.74% to 23.74%. This is a great benefit to cardholders who anticipate spending quite a bit with their credit card and want some room to pay their balance down. This sort of breathing room brings peace of mind to cardholders who want to avoid high interest and late fees.
Finally, cardholders get a handful of perks including primary auto rental coverage when renting a car for business purposes, roadside dispatch, purchase protection, extended warranties and more.
Divvy Business Card vs. Capital One Spark Cash Select
Finally, consider the Capital One Spark Cash Select if you want flat-rate rewards and a generous bonus offer. This card lets you earn a flat 1.5% cash back on all purchases with no annual fee. Plus, you can earn 5% cash back on hotels and rental cars booked through Capital One Travel. You also get the chance to earn $500 in bonus cash with a reasonable spending requirement of $4,500 completed within three months of account opening.
Like the Ink Business Unlimited Card, the Capital one Spark Cash Select has a lower rewards rate than the Divvy Card but comes with the added flexibility of carrying a balance. Additionally, the sign-up bonus will boost your rewards value. To earn $500 in rewards value with Divvy, you’ll need to spend $7,143 at restaurants while paying your bill weekly to earn 7 points per dollar. Even then, you only retain a $500 rewards value if you’re redeeming for travel. That’s a high spend for a modest reward with a complicated set of stipulations you must meet. Reward values are also substantially lower for all redemptions other than travel. Also, consider that with a $4,500 spend on Capital One you’ll earn an additional $67.50 in cash back.
Lastly, the Capital One Spark Cash Select earns you cash back, meaning you can spend the rewards you earn anywhere you want without worrying about whether you’re getting the maximum redemption amount.
This card also comes with a few perks for business owners, including free employee cards, roadside assistance and extended warranties.
How to use the Divvy Business Card
- Only charge and plan for purchases you can afford to pay off each month.
- Pay your card weekly to earn the highest rate of rewards on everything you buy.
- Set employees up with their own cards then use the app to set limits on their spending.
- Redeem your rewards for travel through Divvy for the best redemption value possible.
Is the Divvy Business Card right for you?
If you want a charge card that you have to pay off each month, the Divvy Business Card is one of the few options to consider. We also like the many, many budgeting and expense tracking tools this card offers, including the ability to monitor and oversee all company spending in real time using a single interface.
Even so, you shouldn’t let the high rewards rate this card advertises fool you. The highest rate of 7X points is only for restaurants and only if you pay your bill off every week. Plus, points are worth around a half of a cent each if you don’t redeem for travel, so you’ll only get .51 cents per point for gift cards and .52 cents per point for cash back. If you redeem your rewards for statement credits, you’ll get less than half a cent per point.
At the end of the day, the Divvy Business Card can be nice for spending in the hands of a cardholder who will pay their balance off weekly and doesn’t need to carry a balance from one month to the next. Make sure to compare all the best business credit cards out there so you can know for sure what will suit your business spending.
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.
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