Capital on Tap Business Card Review

If you’ve got a rock star credit record, are approved for a high credit line and a low ongoing APR (we’re talking as low as 9.99%), and can make do with a 1.5% cashback business credit card without tons of frills, the no-fee Capital on Tap Business credit card just might do, as long as your business qualifies.

U.K.-based Capital on Tap partnered with WebBank (which is not a made-up bank and is FDIC-insured) to bring its small-business rewards card offering stateside. The rewards setup — 1.5% unlimited cashback on all purchases — is standard fare on a no-fee card. Adding the once-missing business card basics (the ability to synch with accounting software, for example) also puts the card on par with offerings from more established U.S. lenders.

However, brand new businesses, sole proprietorships, charities/nonprofits need not apply. Capital on Tap currently only accepts applications from active businesses that have been in operation for six months or longer and have at least $2,500 per month in revenue.

The basics: Earn 1.5% cashback on all purchases. Credit limits up to $50,000. No foreign exchange fees. Apply in two minutes and get a response within 48 hours. Applying won’t affect your credit score. Get $200 back if you spend $15,000 in your first three months.

Capital on Tap Business Credit Card pros and cons

Capital on Tap Business Credit Card cashback rewards spending categories

The following table shows the cashback rewards rate per $1 spent in the six most common spending categories. The “Bonus Rate” refers to the amount you can earn in excess of the card’s standard rewards rate.

Some cashback cards limit the spending amount eligible for the bonus rate (a.k.a. the “Spend Cap”). Once you hit that cap (e.g. $1,500 spending in a particular category during a defined time period), the rewards rate on future purchases in that category reverts to the lower “Default Rate.”

What we like

A simple 1.5% flat-rate rewards card — with no annual fee and no cashback limits — is an easy way for a small business to get into the cashback card game.

The card offers a credit line up to $50,000 for those who qualify. Of course, your mileage (credit limit) may vary based on your credit reputation.

The costs of borrowing on the card are potentially quite low — like 9.99% APR low — again, depending on your creditworthiness. (On the flip side, regular purchase APRs can go as high as 40.%+. 👀)

There are several redemption options: Getting cashback rewards applied to your account as a statement credit or redeeming points for discounted gift cards for merchants like Apple, Amazon and Airbnb.

Applying for the Cap on Tap card won’t count as a hard inquiry to see if you qualify. (It does a “soft search” on your business and personal credit files.) Most credit card applications result in a hard inquiry on your credit report, costing you a few points temporarily. Your activity with the card, however, will be provided to credit reporting agencies. So no funny stuff. Got that?

No foreign transaction fees means no extra cost — typically 3% with other cards that charge it — when doing business abroad or with foreign-based suppliers.

Additional employee cards are free. Plus you can set spending limits on each card, although the company is unable to block ATM transactions on any cards.

If you refer a friend and they’re approved for the Capital on Tap card, you’ll earn $100.

What we don't like

A 1.5% cashback rate is … fine. That it applies to all purchases with no spending caps makes it little bit better (or fine+, but still not close to knock-your-socks-off). Even so, it begs to be paired with a card that offers a higher cashback rate on your most common spending categories. And that turns a “no-hassle” card into a “semi-hassle” sitch.

To earn the $200 cashback bonus, you’ll have to spend a whopping $15,000 in the first three months of account opening. NBD if you’ve got some big expenses on the docket. Just know that other business credit cards have much lower spending thresholds (as in $1,500 to $3,000) with higher sign-up bonuses.

Repayment terms are a bit more involved for the Capital on Tap than usual, requiring cardholders to keep an eye on their balance. If you owe between $100 and $1,000, the monthly minimum payment requirement is $100. If your balance is more than $1,000, you’ll owe 10% of the balance.

Got a weaker credit history? 👏 Pay 👏 off 👏 your 👏 balance👏 in 👏 full👏. Every month. Based on your creditworthiness, the variable APR on purchases can be as high as 42.74%. Dude, that’s higher than some loan sharks.

That nosebleed APR, in fact, also the high end of the card’s cash advance APR range. Which may explain why Capital on Tap is willing to charge no cash advance fee.

There’s no introductory APR to offset interest on purchases. That makes the potentially high ongoing interest rate a landmine for cardholders who carry a balance.

The issuer does not accept balance transfers, or direct payments from credit cards or other credit facilities if you want to move your Capital on Tap balance to another card.

Don’t ghost the card once you get it. Cashback rewards points expire if you don’t redeem them or earn additional points for more than 12 consecutive months.

Eligible businesses must have been active for more than six months, earn at least $2,500 in monthly revenue ($30,000 a year) and be based in the U.S., and that the applicant is an active director or majority shareholder of 25% or more of the company.

Capital on Tap is not currently accepting applications from sole proprietorships, or charities and nonprofits.

The bottom line

Is the Capital on Tap Business Credit Card the best rewards card for your wallet? The answer depends entirely on your spending patterns. Let the numbers speak for themselves: Use the investor.com Cashback Credit Card Calculator to see which credit card pays back the highest rewards based on how much you spend each month.

Capital on Tap Business Credit Card fine print

See the Capital on Tap Business Credit Card Agreement and terms of use for the legalese, and the card FAQs for plain English answers on everything from applying for the card to accessing account statements.

Does the Capital on Tap Business Credit Card charge an annual fee?

No, there is no annual fee for the Capital on Tap Business Credit Card.

Does the Capital on Tap Business Credit Card offer a welcome bonus?

Yes, the Capital on Tap Business Credit Card has a welcome bonus of $200.

How much cashback can I earn with the Capital on Tap Business Credit Card?

The average business that spends $2580 per month will earn $464.40 in cash back per year using the Capital on Tap Business Credit Card. For comparison, the average annual rewards payout from the business credit cards in the investor.com database is $483.97, and $464.40 is the median.

These calculations are based on average consumer spending data from the Bureau of Labor Statistics (BLS) and the reward payout rates from the providers we track. Of course, you’re so much more than an average data point (aka “consumer unit,” in BLS parlance). The amount you can earn in cashback rewards using the Capital on Tap Business Credit Card depends entirely on your unique spending habits.

Find out exactly how much you’ll rake in with the Capital on Tap Business Credit Card by tailoring the spending inputs in the calculator above.

Methodology

The results of the investor.com Credit Card Rewards Calculator are based on the monthly spending amounts you enter and the annual dollar value of the rewards each credit card program pays per $1 spent. Credit card companies often express this payout amount as a percentage (e.g., 1.5% of every dollar spent) or on a points basis (e.g. ,1.5 points for every dollar spent). We converted all of them to a dollar amount (“Cash Back Per Year”) to make comparing offers easier.

To calculate the amount of cash back you could earn per year, we factored in:

• Spend category inputs: The default dollar values for each “Spend Category” in the Best Cashback Credit Cards tool — gas, groceries, travel, restaurant, entertainment, pharmacy, other — are based on average American spending data from the Consumer Expenditure Surveys from the U.S. Bureau of Labor Statistics. We also include additional spend categories (such as streaming services, online shopping, utilities, transit, Amazon and more) to help you see which rewards cards are most closely aligned with your actual spending patterns. We encourage you to customize the monthly spend inputs for the most accurate results.
• Tiered rewards rates: If a rewards credit card pays higher cashback rates on certain spending categories (also called “Bonus Rewards”), that difference is reflected in the total “Cash Back Per Year” tally.
• Rewards spending caps: Some cards impose category- or time-based limits (monthly, quarterly, annually) that affect the amount of rewards you can earn. For example, a card may pay 3% cash back on groceries on up to $1,000 of spending each quarter, then revert to the base/default rewards rate until the following quarter. We accounted for bonus spending caps and timeframe in the calculations.
• Default rewards rates: Purchases that exceed a spending cap are usually subject to a lower default rewards rate (e.g., 1% or 1.5%). We mathed that out too.
• Annual fees: If a rewards card charges an annual fee, we deducted that amount from the “Cash Back Per Year” total to provide a true accounting of a card’s annual rewards payout.

What’s not included in the “Cash Back Per Year” total is the cash value of any sign-up/introductory bonus. We highlight any Welcome Bonus separately. While sign-up bonuses can be the most lucrative part of getting a new cashback rewards credit card, not everyone will want or be able to do what it takes to earn the extra cash. (It usually requires spending a certain amount in a specified time period after the card is activated.)

Read next

• Best Cashback Credit Cards
• Best Business Cashback Credit Cards
• What Is Credit? (And Why It Matters)
• Best High-Yield Savings Accounts
• Find a Financial Advisor
• Our Complete Coverage of Credit Cards

About the Editorial Team