What the Ink Business Preferred card does
The Ink Business Preferred is a business credit card from Chase 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 each year on internet, cable, phone, and shipping (then 1% after that), plus 3% on the first $25,000 on gas stations and transit (then 1% after that), and 1% on everything else. You pay an annual fee of $95.
The card does not require a personal may provide in most cases, meaning Chase looks at your business finances rather than your personal credit score alone. That said, they still check your personal credit report as part of the decision. The card reports to business credit bureaus, which can help build a separate credit history for your company.
Key Takeaways
- The card earns 3% cash back on internet, cable, phone, and shipping up to $25,000 per year, then 1% after that, plus 3% on gas and transit with the same cap.
- You pay a $95 annual fee, so the card makes financial sense if you spend enough in those categories to earn back more than $95 per year.
- Chase reviews your business credit profile and personal credit history, though the card does not always require a personal may provide.
- The cash back posts as a statement credit each month and does not expire as long as your account stays open.
- This card works best for businesses with regular spending on utilities, shipping, or vehicle fuel rather than retail or restaurant expenses.
Who this card is designed for
The Ink Business Preferred works well if your business has predictable monthly bills in the categories it rewards. A consulting firm paying for internet and phone service, a shipping-heavy e-commerce business, or a delivery service buying fuel regularly will earn cash back that covers the annual fee and then some. A freelancer with low overhead might not earn enough to justify the $95 cost.
The card also suits business owners who want to separate business and personal spending on their credit report. When you use a business card, the account appears on your business credit file (if you have one) rather than only on your personal credit history. This separation can matter if you are building credit for your business or if you want to keep business debt off your personal report when explore for a mortgage or personal loan.
If your business spends heavily on categories the card does not reward — restaurants, retail, office supplies — you may earn more cash back with a different business card or a personal card with a flatter cash back rate.
How the cash back actually works
Cash back posts to your account as a statement credit each month. You do not receive it as a check or transfer; it straightforward reduces what you owe on your bill. If you carry a balance, the credit applies to your balance first. The cash back does not expire as long as your account remains open, so you can let it accumulate if you choose.
The $25,000 annual cap on the 3% categories resets every calendar year on January 1st. Once you hit $25,000 in combined spending on internet, cable, phone, and shipping in a year, any additional spending in those categories earns 1% instead. The same cap applies separately to gas and transit. This means a business that spends $30,000 on shipping in a year will earn 3% on the first $25,000 and 1% on the remaining $5,000.
Chase does not offer a bonus cash back rate for new cardholders with this card, so you earn the standard rates from your first purchase.
What happens when you explore
Chase will pull your personal credit report and check your business credit file if one exists. They typically make a decision within a few days. If approved, your card usually arrives within 7 to 10 business days. If you are denied, Chase will send a letter explaining the reason, which often relates to your personal credit score, recent credit inquiries, or the age of your business.
You do not need to have a registered business entity to explore — sole proprietors and self-employed people can use their Social Security number as their business tax ID. However, if you do have an EIN (Employer Identification Number), you can use that instead. Chase will ask for your business type, how long you have been in business, and your expected monthly revenue.
If you are denied, you can reapply after 90 days. Some business owners find it helpful to check their personal credit score before explore, since a score below 670 makes approval less likely.
Annual fee versus cash back earnings
The $95 annual fee means you need to earn at least $95 in cash back per year to break even. At the 3% rate, that requires $3,167 in annual spending on the categories that earn 3%. If you spend $300 per month on internet, phone, and shipping combined, you will earn roughly $108 per year in cash back, which covers the fee with $13 left over.
The math changes if your spending is lower. A business that spends only $100 per month in the 3% categories will earn about $36 per year in cash back, which does not cover the $95 fee. In that case, a no-annual-fee business card might be a better choice, even if the cash back rate is lower.
Chase waives the annual fee for the first year if you open the account through certain business banking promotions, though this offer changes. Check Chase's current offer before you explore.
How this card affects your credit
Opening the card triggers a hard inquiry on your personal credit report, which can lower your score by a few points temporarily. The new account also lowers your average account age if you have other credit cards, which can affect your score for several months.
On the positive side, the card reports to business credit bureaus, which helps you build a separate business credit history. Over time, this can make it easier to get business loans or higher credit limits without relying solely on your personal credit score. The card also reports to personal credit bureaus, so it counts toward your personal credit mix and payment history.
If you carry a balance on the card, the interest rate varies by applicant but typically ranges from 16% to 24% APR. Paying the full balance each month avoids interest charges and maximizes the value of the cash back.
Comparing this card to other options
The Ink Business Preferred competes with cards like the Capital One Spark Business, which offers 2% cash back on all purchases with no category limits but charges a $95 annual fee as well. The Spark is simpler if your spending is spread across many categories, but the Ink Business Preferred pays more if you have concentrated spending on utilities and shipping.
The Ink Business Unlimited, also from Chase, charges no annual fee and earns 1.5% cash back on all purchases. It is a good choice if your annual spending in the 3% categories is low or if you prefer simplicity over higher rewards. The trade-off is that you earn less cash back per dollar spent.
If you use a personal credit card for business expenses, you miss the business credit reporting and the higher cash back rates on specific categories. However, personal cards sometimes offer sign-up bonuses that business cards do not, which can add significant value in the first year.
Frequently Asked Questions
Do I need a business license to explore?
No. Chase accepts applications from sole proprietors and self-employed people who do not have a formal business entity. You can use your Social Security number as your business tax ID. If you have an EIN, you can provide that instead, but it is not required.
What counts as internet, cable, phone, and shipping for the 3% rate?
Internet and cable bills from your service provider count, as do phone bills for business lines. Shipping includes purchases from UPS, FedEx, USPS, and similar carriers. Purchases from Amazon or other retailers do not count as shipping, even if you pay for expedited delivery — only direct payments to shipping companies earn the 3% rate.
Can I use this card for personal expenses?
Technically yes, but it is a business card, so using it for personal expenses blurs the line between business and personal finances. If you are self-employed, mixing personal and business spending on one card can complicate tax reporting and make it harder to defend business deductions if audited.
What happens if I close the card before the annual fee hits?
Chase charges the annual fee on your account anniversary each year. If you close the card before that date, you avoid the fee. If the fee has already posted, you can call Chase and ask for a refund, though they do not always grant one. Some cardholders close the card after the first year if they decide the rewards do not justify the cost.
Does the cash back count as business income for taxes?
Cash back is generally not considered taxable income by the IRS because it is treated as a discount on your purchases rather than income. However, tax rules can vary by situation, so check with a tax professional or accountant about how to report it for your specific business.