Is It Worth Switching to the Chase Sapphire Reserve for Business Credit Card? Breaking Down the Pros and Cons | Credit Cards

The Sapphire Reserve® credit card is aimed at entrepreneurs who travel frequently, offering a host of travel, dining and entertainment perks. But it also has a high $795 annual fee.

Do the benefits justify the cost? Here are some pros and cons to help determine if the Chase Sapphire Reserve for Business card is right for you.

The Chase Sapphire Reserve for Business is geared toward business owners who frequently travel, offering extra points for bookings through Chase Travel as well as extra points for booking flights, hotels and Lyft rides.

For example, you can earn:

Other travel perks include a $300 annual travel credit, a $500 credit for booking at specific hotels and access to more than 1,300 airport lounges through Chase Sapphire Lounge by The Club and Priority Pass Select. It may also offer short-term credits and benefits periodically.

Julian B. Morris, a certified financial planner and principal with Concierge Wealth Management in Boston, says the card makes most sense for those who travel often and spend heavily.

“Being a high-spending business owner that travels frequently will help you get the most rewards out of this card,” he says.

Chase says its Sapphire Reserve card offers more than $3,000 in annual value. Some of these perks include:

After signing up for the Chase Sapphire Reserve for Business credit card, you can earn 200,000 bonus points if you spend $30,000 in the first six months after the account has been opened.

 

“Chase points are very, very flexible, which is a pro for a business owner,” Morris says.

Chase’s Points Boost program allows Sapphire Reserve for Business cardholders to redeem Ultimate Rewards points at a higher rate of up to two points per dollar on offers through Chase Travel.

These offers are available on a rotating basis and include hotel and flight bookings.

With an annual fee of $795, the Chase Sapphire Reserve for Business card’s perks come at a steep price.

Some businesses might find the high fee to be acceptable, especially if they earn enough in rewards to offset the cost, says Courtney Epps, a tax strategist and owner of OTB Tax.

“The $795 annual fee can certainly be rationalized,” but only if you’re maximizing the bonus rewards categories, the airport lounge access and the $300 travel credit, says Epps, who has spent nearly two decades helping business owners optimize their cash flow.

Others might find that having to fork over nearly $800 annually just to use the card is too steep a price to pay.

“It does not cater to the average small business,” Epps says. “For owners that don’t travel frequently or maximize the luxury perks that the card offers, the fee immediately becomes a sunk cost.”

Some critics have noted that aside from travel, the Chase Sapphire Reserve for Business credit card may not offer a lot of opportunities to earn rewards points.

For example, you will not earn points for internet services or purchases at office supply stores.

However, the card offers three points per dollar spent on social media search engine advertising and one point per dollar spent on all other purchases.

Business owners – especially those who do not travel much – may find that other cards are a better fit.

“A high-spending business owner – depending upon their priority, if it’s not travel – may be better off with a card that gives 2% or more cash back,” Morris says.

The annual fee for this American Express card is $375, much lower than the $795 annual fee for the Chase Sapphire Reserve for Business card.

Epps likes the American Express® Business Gold Card as well. She also thinks Capital One Spark cards are a good alternative to the Sapphire Reserve for Business card.

Both the Capital One Spark Cash Plus and the Spark 2% Cash cards offer 2% cash back on all purchases and unlimited 5% cash back on hotels and rental cars booked through the Capital One Business Travel.

 

In addition, these cards have low annual fees. The Spark 2% Cash card is fee-free for the first year, then $95 per year after that. The Spark Cash Plus card has a $150 annual fee that is refunded if you spend $150,000 annually.

Meanwhile, two other options – the Spark® 1% Classic and Spark 1.5% Cash Select – offer lower cash back amounts, but each has no annual fee.