Photo: The Associated Press
Capital One just can’t seem to stay out of the limelight these days. A little over a week after making waves with its acquisition of HSBC’s U.S. credit card division (which followed the purchase of ING Direct in mid-June), Capital One today upped the anti in the small business credit card market with the launch of the Capital One Business No Hassle Cash Premier credit card, which offers an extremely attractive 2% cash back on every single purchase you make.
“Small Business owners are busy and don’t have time to worry about high maintenance rewards cards that require they shop at certain retailers, or continually enroll and re-enroll in various programs,” said Rajsaday Dutt, senior director of Capital One’s Small Business Card division, in a press release announcing the card’s release.
“Small Business owners want simplicity and value, and no major competitor has as high a cash back rate across all purchases as our new small business cash back card.”
But you have to wonder: Is this card really all it’s cracked up to be? So let’s find out.
On Par with the Competition
Like most other business credit cards, the Capital One No Hassle Cash Premier offers free employee cards with customisable limits so that small business owners can track, manage and earn rewards on employee spending.
Also like most other business credit cards, this new Capital One product provides small business owners with online quarterly and end-of-year statements.
What’s more, you can find both business credit cards with no annual fee and business cards with annual fees. This Capital One card is a hybrid of the two, given that the $59 annual fee kicks in during the second year. What’s Unique? What you’ll be hard-pressed to find elsewhere is the following combination of perks:
- 2% cash back on all purchases with no tiers or rewards program registration required
- No foreign transaction fees
- $100 bonus cash back for spending $1,000 in the first three months and an extra $50 cash back for designating at least one employee as an authorised user
- Freedom to designate administrative tasks like making payments and requesting transaction information
- Business Credit Bureau Reporting
About the only thing missing from this offer is full CARD Act protection, which as I’m sure you know, is not legally mandated for small business credit cards.
Bank of America is the only major issuer to extend all of the law’s major protections to its business cards, according to a Card Hub study.
To Capital One’s benefit, the company has adopted four of the five major tenets of the CARD Act. However, it has yet to include the most important CARD Act protection of all: the requirement that a cardholder become 60 days delinquent before an increased interest rate is applied to existing debt.
Without that protection, the interest rate on an existing balance held on a Capital One business credit card can be changed at any time, even when the small business owner hasn’t actually done anything wrong.
Ultimately, the Capital One Business No Hassle Cash Premier is a great card for small business purchases that you will pay for in full, especially if you value straightforward simplicity.
The card provides 2% cash back on all purchases; there are no rotating spending categories, rewards tiers or expiration dates. It’s basically a business version of the Venture Card, which has been extremely successful in its own right, but better given that you earn cash, not miles.
And if that’s not enough for you to switch small business purchasing vehicles, you’ve got to be happy about the effect this card will have on the business credit card market in general. When one issuer makes a big move, others are sure to follow. That can only mean more attractive business card terms moving forward.
This article comes from the editorial staff at Card Hub, a leading online credit card comparison marketplace.