Capital on Tap Rewards: Should you choose cashback or Avios?

Jan 11, 2020

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

This story has been paid for by Capital on Tap, but the opinions are those of the author and TPG. This is one way TPG continues to provide our readers with free news and advice about travel.

Capital on Tap offer a unique business credit card called the Capital on Tap Business Rewards Card. You can read our full review of the product here.

As well as having no foreign transaction fees, which is rarity for a U.K. business credit card, the rewards for this product come in two very different options: you can choose from Avios and/or cashback.

So how does this work and which should you choose?

(Photo courtesy of Capital on Tap)

All purchases on the card earn Capital on Tap points at a rate of 1 point per £1 spent, or the equivalent in a foreign currency, noting the lack of foreign transaction fees. You can also earn a welcome bonus of 10,000 additional Capital on Tap points for spending £5,000 in the first 90 days of card membership. After meeting the minimum spending requirement of £5,000, you would have a total of 15,000 Capital on Tap points, taking into account the 1 point per £1 earn rate.

You can then redeem 1 Capital on Tap point for 1p (1% cashback) or 1 Avios. So for those 15,000 points, you could choose either 15,000 Avios, £150 in cashback or a combination of both (for example, 7,500 Avios + £75 cashback). This should easily cover the cost of the £99 annual fee — especially in the first year.

TPG U.K. values major points and miles currencies including Avios and publishes an updated valuation each month, taking into account any changes in the programmes over the past month that may increase or decrease the value of those points or miles. This month, we value Avios at 1.1p each. This means that TPG U.K. values those 15,000 Avios at £165, slightly higher than the £150 cashback option, but quite similar.

Businesses that travel, especially at the last minute, may be able to obtain higher value than 1.1p per Avios, for example, by redeeming them for Reward Flight Savers. If this is the case, the Avios option may be more valuable to them. For any businesses that instead just want a simple small discount on their everyday business expenses, the cashback option may be better.

Regardless of which rewards option you choose, its great to have the flexibility to have both options and be able to switch between the two depending on your business needs at the time.

You can apply for this card here.

Featured photo courtesy of Capital On Tap.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.