Credit card review: Capital on Tap Business Rewards Card

Jan 8, 2020

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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.

The Capital on Tap Business Rewards Card is a sometimes-overlooked option for small businesses in the U.K. The card has several perks that help it stand out, highlighted by flexible redemption options and no foreign transaction fees when making international purchases.

In This Post

Who is this card for?

This card is marketed towards U.K. businesses looking to utilise both cashflow benefits, as well as earn valuable rewards in exchange for paying an annual fee. This card is also attractive for businesses that make purchases in foreign currencies and/or use the card abroad.

To be approved for this card, your business must have a turnover of at least £2,000 per month, be based in the U.K. and have no unsatisfied County Court Judgment against it. A credit limit of up to £50,000 is possible with this card, based on your creditworthiness as assessed by Capital on Tap.

Sign-up bonus and annual fee

You will earn 10,000 bonus Capital on Tap points after spending £5,000 on the card in the first three months after being approved for the card. The 10,000 points can be redeemed for £100 cashback or 10,000 Avios (worth £110 based on TPG U.K.’s most recent valuations) — but more on that below.

This card comes with an annual fee of £99, payable in the first and subsequent years.

Earning

You will earn 1 Capital on Tap point for every £1 spent on the card (or the equivalent of £1 spent in foreign currencies). The Business Rewards card is a visa card, which is likely to have more acceptance globally American Express cards.

Representative example: Representative APR 39.9%, Purchase Rate 2.84% monthly, minimum credit limit £1,000.

(Photo courtesy of Capital on Tap)

Redeeming

After you earn 1 point for every £1 of card spend with Capital on Tap, you can then redeem 1 point for 1p (1% cashback) or 1 Avios. The variety of redemption options is a unique flexibility option in the U.K. business credit card space. You can switch between redemption options whenever and as often as you like.

We currently value Avios at just over 1p each in our monthly valuations, so there isn’t a large difference in the value of either redemption option. Some businesses that travel will value the flexibility of earning Avios, while others will simply want a straightforward way of reducing their business expenses with the cashback offering.

Perks

Along with the flexibility of the choice of points or cashback, cardholders can enjoy up to 56 days interest free on purchases each statement cycle, which can greatly assist with short-term cashflow issues.

The primary cardholder can issue up to 20 supplementary cards at no cost. These can be given to employees to allow them to make business purchases on the card with the primary cardholder collecting all the Capital on Tap points in one place as they see fit. They will also be responsible for payment of the total balance for purchases made on all cards.

Perhaps our favourite feature of the card is that you will not be charged any ATM or foreign transaction fees. This is one of the only business cards in the U.K. that does not charge foreign transaction fees, which is excellent for businesses making purchases in foreign currencies and/or using the card abroad, such as for staff travelling for business purposes. Note that if you use the card for cash withdrawals, while you will not be charged any ATM fees, interest on cash advances will begin accruing immediately.

Which cards compete with this card?

As a mid-tier business credit card (in terms of both annual fee and perks), this card most closely competes with the Gold Business Charge Card from American Express U.K. The Amex Gold card comes with a higher welcome bonus but also a higher annual fee and imposes a 2.99% fee for purchases in foreign currencies.

(Photo courtesy of Capital on Tap)

Bottom line

This is a unique credit card option for businesses. There’s a welcome bonus, which should offset the annual fee in the first year and the flexibility to choose between cashback and Avios is a valuable one that should appeal to a wide range of different businesses.

The real X-Factor of the card is the lack of foreign transaction fees. We are frustrated with the FX fees all other U.K. business credit cards impose — especially when they offer travel benefits. So it is refreshing to see a product that earns rewards also encourages use abroad.

You can apply for this card here.

Featured image by 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.

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