What the Chase Ink Business Preferred card offers and who it's built for
The Chase Ink Business Preferred is a rewards card designed for small business owners and self-employed people who want cash back on everyday spending. It earns 3% cash back on the first $25,000 you spend per year on combined purchases in these categories: internet, cable, phone services, gas stations, and transit (including taxis, parking, trains, and buses). After you hit $25,000 in combined spending in those categories per year, you earn 1% cash back for the rest of the year. You earn 1% cash back on all other purchases with no limit.
The card has an annual fee of $95. There is no foreign transaction fee, which matters if you travel for business or work with international vendors. Chase also offers an introductory bonus: new cardholders typically earn a cash back bonus after spending a set amount in the first three months, though the exact bonus changes. You should check Chase's website for the current offer before you explore.
This card works best for businesses that spend heavily on utilities, phone lines, internet, or fuel. If your business is mostly online sales or services with low overhead, the category bonuses may not save you much. If you carry a balance month to month, the rewards do not offset the interest charges, so this card is most useful if you pay your full balance each month.
Key Takeaways
- The card earns 3% cash back on internet, cable, phone, gas, and transit up to $25,000 per year in combined spending, then 1% after that threshold.
- You pay a $95 annual fee, so you need to earn enough cash back to make that fee worthwhile for your business.
- The introductory bonus changes regularly, so check Chase's current offer before you open the account.
- You must have a business structure (sole proprietorship, LLC, S-corp, or C-corp) and a business tax ID or Social Security number to open the account.
- The card reports to business credit bureaus, which can help you build business credit separate from your personal credit.
What you need to open the account
Chase requires you to have a business structure to open an Ink Business Preferred card. This can be a sole proprietorship (where you are the only owner), an LLC, an S-corp, a C-corp, or a partnership. If you are self-employed and work under your own name, you can open the account as a sole proprietorship using your Social Security number.
You will need to provide your business tax ID (EIN) if you have one, or your Social Security number if you do not. Chase will also ask for your business name, address, and the nature of your business. Have this information ready before you start the process. The process itself takes about 10 minutes and happens entirely online through Chase's website.
Chase will pull your personal credit report as part of the approval process. Your personal credit score matters for this card even though it is a business card. If your credit score is below 670, approval is unlikely. If you have been denied for credit recently or have significant negative marks on your report, you may want to wait a few months before explore.
How to open the account online
Go to Chase's website and navigate to the business credit cards section. Find the Ink Business Preferred card and click the button to open an account. You will be taken through a series of screens asking for your personal information, business information, and income details.
Enter your legal name, date of birth, and Social Security number. Then enter your business name, business address, and business structure (sole proprietorship, LLC, etc.). Chase will ask how long your business has been operating and what your annual business revenue is. Answer honestly — Chase verifies this information and misrepresenting it can result in account closure.
After you submit the process, Chase will tell you when ready or within a few minutes whether you are approved, denied, or pending review. If you are approved, you can set up online access right away. Your physical card will arrive in 7 to 10 business days. If you are pending, Chase will call you within one business day to ask follow-up questions.
Understanding the cash back structure and how it adds up
The 3% cash back categories are where the card's value sits. The categories are: internet and cable services, phone services, gas stations, and transit (parking, taxis, trains, buses, and ride-sharing). These are combined into one $25,000-per-year threshold. Once you spend $25,000 across all four categories in a calendar year, every dollar in those categories earns 1% for the rest of that year.
For example: if you spend $15,000 on internet and phone services and $12,000 on gas in the first 10 months of the year, you have hit the $25,000 threshold. Any gas or internet purchases after that point earn 1% instead of 3%. The threshold resets on January 1 each year.
All other purchases earn 1% cash back with no limit. This includes office supplies, equipment, software subscriptions, meals, and travel. The 1% rate is lower than some competing business cards, so the real value of this card is in the 3% categories. If your business does not spend much in those categories, a different card might earn you more cash back.
Cash back is deposited into your account as a statement credit or can be transferred to a linked Chase checking or savings account. You can also redeem cash back for travel through Chase's travel portal, though the cash back is worth more as a statement credit than as travel points.
Annual fee and whether it makes sense for your business
The $95 annual fee is charged on your statement each year, typically on the anniversary of when you opened the account. To break even on the fee, you need to earn at least $95 in cash back per year. At the 3% rate, that means spending about $3,167 per year in the bonus categories. At the 1% rate on other purchases, you would need to spend $9,500 per year.
Most small business owners who use this card spend enough in the bonus categories to earn back the fee within the first few months. If your business has very low spending or you rarely use gas, internet, or transit, the fee may not be worth it. In that case, a no-annual-fee business card might be a better fit, even if the cash back rate is lower.
The introductory bonus can also offset the first year's fee. If the current bonus is worth $200 or more, you will come out ahead in year one even if you do not spend much. After year one, you should do the math: add up what you spent in the bonus categories over the past 12 months, multiply by 3%, and see if that number is higher than $95. If it is not, you can close the account before the next annual fee hits.
How this card affects your business credit and personal credit
The Ink Business Preferred reports to business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business), which means it can help you build a business credit profile separate from your personal credit. This matters if you plan to borrow money for your business later — lenders will look at your business credit score as well as your personal score.
The card also reports to your personal credit bureaus (Equifax, Experian, and TransUnion), so it affects your personal credit score. When you open the account, Chase does a hard inquiry on your personal credit, which can lower your score by a few points temporarily. Once the account is open, the card's payment history and credit utilization will show up on your personal credit report.
If you pay your bill on time every month and keep your balance low relative to your credit limit, the card will help your credit score over time. If you miss payments or carry a high balance, it will hurt your score. The card's credit limit counts toward your total available credit, so having a high limit can actually help your credit utilization ratio if you do not use much of it.
Comparing this card to other business credit cards
The Ink Business Preferred competes with cards like the American Express Business Gold and the Capital One Spark Business Elite. The American Express Business Gold offers higher cash back rates in some categories (4% on internet, cable, and phone; 4% on gas and transit) but also has a $295 annual fee. If you spend heavily in those categories, the Amex card might earn you more, but the higher fee means you need to spend more to break even.
The Capital One Spark Business Elite has no annual fee and earns 2% cash back on all purchases. This is simpler than the Ink Business Preferred's tiered structure, and there is no $25,000 spending threshold to track. However, you earn less cash back in the bonus categories (2% versus 3%), so the Ink card will earn you more if you spend a lot on internet, phone, or gas.
The choice depends on your spending pattern. If you spend heavily in the bonus categories and can justify the $95 fee, the Ink Business Preferred is a strong choice. If your spending is spread across many categories or you prefer simplicity, a flat-rate card like the Capital One Spark might be better. Compare your expected annual spending in each category against the fee and bonus rates before you decide.
Frequently Asked Questions
Can I use this card for personal expenses, or only business expenses?
Technically you can use it for personal expenses, but it is a business card and Chase's terms of service say it should be used for business purposes only. Using it primarily for personal expenses could result in account closure. The card works best when you use it for actual business spending.
What happens if I do not spend $25,000 in the bonus categories in a year?
Nothing negative happens. You straightforward earn 3% cash back on whatever you do spend in those categories, up to $25,000. The threshold is a cap, not a requirement. You still earn 1% on all other purchases regardless of whether you hit the threshold.
Can I transfer my cash back to my business bank account?
Yes. You can link a Chase business checking or savings account and transfer cash back directly. You can also take it as a statement credit, which reduces your bill. You cannot transfer cash back to a non-Chase account directly, but you can take a statement credit and then move money from your Chase account however you want.
What if I close the account before the annual fee is charged?
If you close the account before the annual fee hits, you will not be charged. The fee is typically charged on the anniversary of when you opened the account. If you open in March and close in February, you avoid the fee. If you close after the fee has already posted, you can call Chase and ask for a refund, though they are not required to grant one.
Does this card have a spending limit or maximum cash back I can earn?
There is no maximum cash back you can earn on the 1% category. On the 3% categories, the limit is $25,000 per year in combined spending, after which you earn 1%. There is no stated spending limit on the card itself — you can spend as much as your credit limit allows.