Is the Ink Business Preferred card worth its annual fee?

Regardless of whether your credit card's annual fee is $1 or $1,000, it's essential to reassess that fee each time it's due to determine if it remains justified for the coming year.

The Ink Business Preferred® Credit Card features a modest $95 annual fee, but is it justifiable given that maintaining this card comes at a cost?

Let’s examine the advantages and features provided by the Ink Business Preferred to determine if the annual fee holds value in the second year and beyond.

Welcome bonus

Currently, new applicants for the Ink Business Preferred can earn 90,000 bonus Ultimate Rewards points after spending $8,000 within the first three months of opening their account. According to TPG's July 2024 valuations, Ultimate Rewards points are valued at 2.05 cents each, making this bonus worth $1,845 — the best welcome offer we’ve ever encountered on this card.

With Chase, you can redeem your points at a value of 1.25 cents each for travel bookings with the Ink Business Preferred. This is the same rate offered for points from the Chase Sapphire Preferred® Card, though it falls short of the 1.5 cents-per-point value available through the Chase Sapphire Reserve®. The Sapphire Preferred also allows point redemption at 1 cent each for statement credits.

Nevertheless, you can extract far greater value from your points than 1.25 cents each. By taking advantage of Chase's 14 airline and hotel transfer partners, you can utilize your points for hotel stays and flights, providing significantly more value.

Cellphone protection

When you pay your monthly wireless bill using your Ink Business Preferred, you receive cellphone protection against theft or damage — without the need to purchase coverage from your wireless provider. This benefit extends to you and any employees listed on the bill.

With this coverage, phones linked to the wireless account are insured up to $1,000 per claim. Each claim incurs a $100 deductible, with a limit of three claims within a 12-month span.

Shopping protections

The Ink Business Preferred provides two categories of shopping protections: purchase protection and extended warranty coverage.

The Ink Business Preferred safeguards new purchases for up to 120 days against damage or theft. This benefit can reimburse you for repairs or replacements, with a per-claim limit of $10,000 and a total account limit of $50,000. However, there are exclusions, including animals, live plants, and motor vehicles. Additionally, the card’s extended warranty feature adds a year to manufacturers' warranties of three years or less.

While you may not want to rely on these protections for monetary returns, you can rest easy knowing that your significant business expenditures are safeguarded.

Travel protections

When traveling, you can benefit from trip cancellation and interruption insurance, roadside assistance, and auto rental collision damage waiver protections with your Ink Business Preferred.

If your trip is canceled or shortened due to a covered event, such as illness or severe weather, you can be reimbursed up to $5,000 per person and $10,000 per trip for your pre-paid, nonrefundable travel expenses, including airfare, tours, and accommodation.

In case of an emergency while on the road, you can contact Chase's dispatch service for assistance. This benefit covers situations like lockouts, dead batteries, or flat tires. However, while the connection is included, any service fees will be charged to your card.

Furthermore, when renting a vehicle, you can opt out of the rental company’s collision insurance and receive collision damage waiver coverage if you pay for the entire rental cost with your Ink Business Preferred. This benefit can cover the expenses for repairing or replacing your rental car.

Much like the card's purchase protections, you might not derive financial benefits from these travel protections every year, but you can embark on your journeys with greater peace of mind knowing you're covered if issues arise.

The benefits guide offers comprehensive information about these protections, including limits and exclusions.

Additional perks

By using your Ink Business Preferred, you'll earn Chase Ultimate Rewards, which, according to TPG's July 2024 valuations, are worth 2.05 cents each. You can transfer these points to 14 various airline and hotel partners. Additionally, you can redeem your travel points through the Chase Ultimate Rewards travel portal at a rate of 1.25 cents, allowing you to use points like cash for travel expenses.

You'll earn 3 points for every dollar spent on the first $150,000 of purchases each account anniversary in these categories: travel, shipping, internet services, cable, phone services, and advertising on social media and search engines. After reaching the $150,000 threshold, you'll earn 1 point per dollar on these categories and all other purchases.

If your business spends significantly in these categories, you could accumulate up to 450,000 points annually by hitting the $150,000 cap. TPG values these points at approximately $9,225.

It's important to assess these earning categories to determine their effectiveness for your business. Additionally, consider how these categories align with your personal credit cards that also earn Ultimate Rewards points, like the Chase Sapphire Reserve.

A key advantage of the Ink Business Preferred is that, unlike other Chase business credit cards, it grants you direct access to Chase's transfer partners. Those with no-annual-fee cards like the Ink Business Cash® Credit Card and personal cards such as the Chase Freedom Unlimited® cannot access these partners without holding premium cards like the Ink Business Preferred or personal cards like the Sapphire Reserve or Chase Sapphire Preferred Card to redeem points this way.

This means that in addition to earning points, this card can enhance the value of your rewards from other Chase cards.

To maximize your options for utilizing Ultimate Rewards points, it's essential to hold a Chase card with an annual fee, and this card meets that criterion.

In summary

For a $95 annual fee on the Ink Business Preferred, you gain access to shopping and travel protections, cellphone coverage, and valuable bonus categories that benefit many businesses. Additionally, you can transfer your points to over a dozen hotel and airline partners, allowing for significant redemption values on award travel.

However, if you already possess a card that allows these transfers and the bonus-earning categories don't align with your business needs, the annual fee for the Ink Business Preferred may not be justified.

To explore more about the card, check out our comprehensive review of the Ink Business Preferred.