Business credit cards with annual fees: What to know

As you explore different business credit cards and the perks and benefits that come with each, you’ll notice that some have an annual fee while others don’t. While the idea of paying an annual fee for your business credit card may sound intimidating at first, many of these cards typically come with a suite of premium benefits or offers that offset that cost.

Capital One has a variety of business credit cards that can support the financial needs of your company, and while some of them have an annual fee, those cards can help unlock bigger rewards for your business. So how do you know if a business credit card with an annual fee is worth it? Read on to learn more and see what’s right for you.

What you’ll learn:

• An annual fee for a business credit card is billed once a year, usually on the anniversary of the account opening. 

• Some business cards charge annual fees to offset the costs of their premium rewards and benefits. 

• Capital One has four business credit cards with annual fees: Venture X Business, Spark Cash Plus, Spark Miles and Spark Cash.

Annual fees for business credit cards are similar to those on personal credit cards. It’s a charge billed once a year that the cardholder must pay to continue using the card. The fee is usually due on the anniversary date when you first opened the account.

Business credit card annual fees can vary widely. For example, Capital One business credit cards have annual fees ranging from $95 to $395.

Business credit cards sometimes come with annual fees because they may provide higher rewards and other premium features, compared to cards without annual fees. In some cases, the annual fee is offset by the benefits you enjoy when using the card. 

If you’re thinking about applying for a business credit card or wondering how to choose a card for your new business, start by comparing cards. Make sure you understand the annual fee and perks each card offers. Consider your spending needs and how the card could potentially benefit your organization.

The annual fee on some business credit cards might help offset the costs of valuable benefits, such as:

• Generous welcome bonuses. Business cards with annual fees may offer a bigger welcome bonus than a consumer credit card, whether it’s more bonus miles or cash back when you first open the account. 

• Extensive travel rewards. If you travel regularly for business, some business credit cards offer elite travel rewards like access to airport lounges and premier hotels, and statement credits when you enroll in TSA PreCheck® or Global Entry.

• Additional cash back rewards. You could even earn cash back on large company expenses in addition to everyday purchases with rewards that quickly add up and put money back into your business. 

Customizable account management features. Many business credit cards with annual fees—and even some with no annual fees—offer a wide range of account management features that simplify tracking business expenses and managing employee spending.

Here’s an at-a-glance look at Capital One business credit cards with annual fees:

Beyond best-in-class reward options, Capital One business credit cards also help streamline your company’s expenses. Free employee cards allow you to track their spending while earning rewards on their purchases. Plus, you’ll have access to account management features like year-end summaries, detailed purchase records and automatic payment options.

Here’s more information about each Capital One business credit card with an annual fee:

Venture X Business is designed for those looking to maximize their travel purchases while enjoying additional flexible rewards and innovative business tools. 

The $395 annual fee included with Venture X Business provides elite benefits like:

• 2X miles on every purchase

• 5X miles on flights and 10X miles on hotels and rental cars booked through Capital One Travel

• A $300 annual travel credit for bookings made through Capital One Travel

• 10,000 bonus miles every year, starting on your first anniversary

• Complimentary access to over 1,300 airport lounges worldwide

• No preset spending limit, which offers purchasing power that adapts to your business

Keep in mind that the Venture X Business card must be paid in full every month.

Spark Cash Plus has a $150 annual fee. But the fee is refunded every year you spend at least $150,000. 

Some of the main benefits your business will enjoy with Spark Cash Plus include:

• 2% cash back on all purchases

• 5% cash back on hotels and rental cars booked through Capital One Travel

• No preset spending limit, which adapts to your needs based on your spending behavior, payment history and credit profile 

Like Venture X Business, Spark Cash Plus also must be paid in full every month.

For the first year, Spark Miles has no annual fee. After that, the annual fee is $95. 

Here’s what you’ll get with Spark Miles:

• Unlimited 2X rewards on every purchase for your business

• 5X rewards on hotels and rental cars booked through Capital One Travel 

• A one-time bonus of 50,000 miles when you spend $4,500 in the first three months of opening the account

• Premium benefits like a $50 experience credit, room upgrades and more with the Lifestyle Collection

Unlike Venture X Business and Spark Cash Plus, Spark Miles balances do not need to be paid in full every month, although you will pay interest on any balance carried over.

Like Spark Miles, Spark Cash doesn’t have an annual fee for the first year, then it’s $95 each year thereafter. Both cards offer great rewards with that lower annual fee, but there are a few key differences between what these two cards offer.

Here’s what your business will enjoy with Spark Cash:

• 2% unlimited cash back on every purchase for your business with no limits or category restrictions

• Unlimited 5% cash back on hotels and rental cars booked through Capital One Travel

• A one-time $750 cash bonus when you spend $7,500 within the first three months of opening the account

Like Spark Miles, Spark Cash balances do not need to be paid in full every month, although you will pay interest on any balance carried over.

Business credit cards with annual fees usually offer more generous rewards as well as premium features that can often outweigh the cost. You could potentially earn additional miles or cash back, get a hefty welcome bonus or extra travel perks, and much more.

Capital One offers a variety of business credit cards—both with and without annual fees—that reward your business and help streamline expenses. Compare cards today and see if you’re pre-approved with no harm to your personal credit score.