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If you’re looking for a top business credit card, you will want to find one that offers you rewards for items you frequently purchase. You also want to ensure that you get the most out of the points you can redeem. Both the Chase Ink Business Preferred and the Business Gold Rewards Card from American Express have plenty to offer. Read on to learn about each one and how they can benefit your business needs.
Chase Ink Business Preferred vs Business Gold Rewards Card from American Express
These two cards are very similar to one another in many ways, each making an excellent choice for a company card. However, there are some notable differences between them, meaning that one card is likely a better choice for you.
Let’s take a look at both the Chase Ink Business Preferred and Business Gold Rewards card from American Express and see how they compare.
Your business probably spends a fair amount of money each year. Between office supplies, phone and internet services, and even marketing and advertising, some serious reoccurring fees can be charged to your credit card.
That’s why comparing the rewards-earning potential for these two cards is priority number one. Ensuring that the card you use is the one that will earn you the most back is key. When you’re a small business owner, every penny counts.
Both the Chase Ink Business Preferred and the Business Gold Rewards Card from American Express earn between 1-3 points per dollar spent, depending on the purchase category.
|Chase Ink Business Preferred||Business Gold Rewards Card from American Express|
|3X Points||Earn 3x points on your first $150,000 in combined purchases from the following four categories:||Earn 3x points on your first $100,000 spent in ONE category of your choice, from the following:|
|2x Points||n/a||Earn 2x points on your first $100,000 in spending from the remaining four categories|
|1x Points||Everything else||Everything Else|
What Does It Mean?
The Chase Ink Business Preferred℠ Credit Card takes a very simple approach. You’ll earn 3x points back on your first $150,000 in combined purchases between travel, shipping expenses, internet/cable/phone services, and advertising through social media sites or search engines. Everything else you buy? You’ll earn 1 point per dollar.
The Business Gold Rewards Card from American Express is a bit more versatile – but also more confusing. The card offers five total categories: airfare, shipping purchases, gas stations, computer hardware/software/cloud services, and advertising through online/tv/radio. Of those, you can choose one to be your big earner.
In that one choice category, you’ll earn 3x points on the first $100,000 spent. Once you surpass that limit, you’ll earn 1 point per dollar. In each of the remaining four categories, you’ll earn 2x points on the first $100,000 spent. Once you surpass that limit, you’ll earn 1 point per dollar. And if you buy something not in one of those five categories? You’ll simply earn 1 point per dollar.
Both issuers allow you to transfer your points to a number of valuable partners for redemption, too. With Chase, points transfers are at a rate of 1:1. Plus, they offer 11 transfer partner options (like United Airlines and Hyatt).
With American Express points, you also have many partner options through the Membership Rewards program. You’ll find that your points are worth more or less depending on the partner chosen. However, you can occasionally find bonus promotions, making your points even more lucrative with certain airlines or hotel chains.
The easiest way to earn points on your new card is to snag a welcome bonus. Additionally, both the Ink Business Preferred and Business Gold Rewards offer a lucrative welcome offer.
If you sign up for the Chase Ink Business Preferred card, you’ll be able to earn 80,000 bonus points. All you have to do is spend $5,000 in the first three months of card ownership, and the 80k points will be credited to your account.
With the AMEX Business Gold Rewards card from American Express, you’re looking at 50,000 bonus points as a welcome bonus. You’ll need to also spend $5,000 in the first three months of owning the card in order to earn them, though.
While the required spend is the same for both cards, the Ink Business Preferred will net you considerably more in bonus points.
Another big consideration when signing up for a new card (business or personal) is how much that card will cost you each year. The best rewards cards often come with an annual fee, though there are some that don’t. However, this is usually offset easily by the points earned throughout the year.
The Ink Business Preferred credit card comes with an annual fee of $95. This is not waived the first year, so you’ll be paying it from day one. If you want additional credit cards for authorized users, such as your spouse or employees, you’re welcome to request such at no additional charge. The Ink Business Preferred also allows you to set spending limits on these employee cards, ensuring that large charges aren’t run up without your knowledge or permission.
With the Business Gold Rewards card, you’re looking at an annual fee of $175. While this is higher than the Ink Business Preferred, American Express does waive your fee for the first year. So, you’ll actually come out ahead in year two. However, the AMEX Business Gold Rewards will charge you for additional cards that you may request for employees. The first one comes at $50 a year, though subsequent cards are complimentary.
As with the Ink Business Preferred, the AMEX Business Gold Rewards also allows you to set spending limits on employee cards. American Express gives you the option of receiving email or text alerts each time that your employee cards are used. That way, you can be up-to-speed with all of your business spending.
There are a number of excellent perks that come along with credit cards these days, and both the Ink Business Preferred and AMEX Business Gold Rewards are no exception. Some of these benefits will give you added peace of mind and others will keep more money in your pocket. All of them will come to you free of charge with your card membership.
Here’s a look at the added features of each card:
Cell Phone Coverage
- INK: Up to $600 per claim, limit of 3 claims per year. Subject to a $100 deductible per claim.
- GOLD: n/a
Rental Car Coverage
- INK: primary coverage
- GOLD: secondary coverage
- INK: One additional year on top of manufacturer’s warranty
- GOLD: One additional year on top of manufacturer’s warranty
Foreign Transaction Fees
- INK: No foreign transaction fees
- GOLD: No foreign transaction fees
Lost Baggage Coverage
- INK: Up to $3,000 per person with a $500 limit per person for jewelry, cameras, and other electronics
- GOLD: Up to $1,250 in coverage per carry-on and $500 per checked bag
Trip Delay or Cancellation
- INK: $500 per ticket for a travel delay of 12+ hours, and $5,000 per trip for cancellations
- GOLD: n/a
Travel Accident Insurance
- INK: $500,000 common carrier loss of life coverage
- GOLD: $100,000 accidental death and dismemberment
Biggest Difference Between Chase Ink Business Preferred and AMEX Business Gold Rewards
The biggest difference between the two cards is actually the type of card they are. The Ink Business Preferred card, for example, is a traditional credit card. This means that it works like any other credit card in your wallet. You’re given a credit limit, you can spend up to that limit each month, and you can choose to pay off the balance each billing cycle or carry it over from month-to-month.
The AMEX Business Gold Rewards Card, however, is actually a charge card. This means that you don’t have a limit to the card, so you can use it to make very large purchases (great for unexpected business expenses!). However, you cannot carry a balance over from month-to-month without being subject to serious fees. You’ll need to pay it in full each month.
It’s always wise to pay off your credit card’s statement balance in full to avoid paying interest. The Business Gold Rewards, though, doesn’t actually offer you a choice.
Which Is Best – Chase Ink Business Preferred or AMEX Business Gold Rewards?
Want to determine which of these two cards will best suit your business? Then you need to take a look at your spending habits. If 80% of your business’s expenses involve a category like fuel or computer hardware/software, the 3x points earning potential of the AMEX Business Gold Rewards can’t be beaten. If your monthly spending is a little bit of everything, the Ink Business Preferred’s rewards layout will best serve you.
Also, make a note of the fact that the Business Gold Rewards is a charge card. If you ever plan to leave a balance on the card or know that a big, unexpected purchase will take your business a few months to pay off, you’d be better off with the Ink Business Preferred. That way, you can carry over a balance if absolutely necessary.
Apply Here: Chase Ink Business Preferred℠ Credit Card
Apply Here: Business Gold Rewards Card from American Express
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Editorial Note: The editorial content on this page is not provided by any bank, credit card issuer, airlines or hotel chain, and has not been reviewed, approved or otherwise endorsed by any of these entities.