Is the Venture X Business worth the $395 annual fee?

The Capital One Venture X Business is a great option for small-business owners who want to earn miles on their spending. It features a solid welcome bonus and many of our favorite features found on its consumer counterpart, the Capital One Venture X Rewards Credit Card.

One such similarity is the $395 annual fee. This is a bargain compared to some other premium business cards, such as The Business Platinum Card® from American Express with its $895 fee (see rates and fees).

Still, a $395 annual fee is a meaningful expense. Does the Venture X Business offer enough benefits and earning potential to justify that premium fee? Here’s what you need to know if you’re on the fence.

Welcome offer

Currently, new Venture X Business applicants can earn up to 300,000 bonus miles and a $1,000 travel credit:

• Earn 150,000 bonus miles after spending $40,000 on purchases in the first four months from account opening.
• Earn an additional 150,000 bonus miles and a $1,000 Capital One Business Travel credit* after spending $120,000 total on purchases in the first four months from account opening.

*To use within 16 months from account opening

This bonus is worth up to $6,550 when you factor in TPG’s November valuations of Capital One miles at 1.85 cents and the travel credit.

If you can meet the steep minimum spending requirements, the bonus alone is valuable enough to justify paying the card’s $395 annual fee more than 16 times over.

Earning potential

Beyond the Venture X Business welcome bonus, you’ll earn:

• 10 miles per dollar spent on hotels and rental cars purchased through Capital One Business Travel
• 5 miles per dollar spent on flights and vacation rentals purchased through Capital One Business Travel
• 2 miles per dollar spent on all other purchases

And when it comes to redeeming your miles, you have options. If you want to keep it simple, you can redeem your miles for a statement credit to cover travel expenses (charged to the card within the previous 90 days). This option offers a value of 1 cent per mile.

To get more value out of your miles, you can also transfer your miles to any of Capital One’s 15-plus hotel and airline partners, including valuable options like Air Canada Aeroplan, Singapore Airlines KrisFlyer and Wyndham Rewards.

TPG values Capital One miles at 1.85 cents each when used with transfer partners, though the value you receive depends on your redemption.

This makes the Venture X Business an especially attractive option for big-spending business owners who don’t want to worry about bonus categories.

With this card, you can feel confident knowing you’re earning valuable rewards no matter what you’re buying.

Annual travel credit

Venture X Business cardholders receive $300 in credits each year for travel booked through Capital One Business Travel. This credit is automatic, making it relatively easy to use.

However, since the credit is limited to travel booked through Capital One Business Travel, you’ll likely give up any hotel or rental car elite status perks. The drawbacks of booking through a portal can put a damper on the value of this annual credit.

Still, fully taking advantage of this perk will bring your effective annual fee down to just $95.

Anniversary bonus miles

The travel credit isn’t the only annual perk you’ll get as a Venture X Business cardholder. Every year, on your account anniversary, you’ll also receive 10,000 bonus miles, worth $185 according to our valuations.

Even if you redeem these anniversary miles directly for travel at a rate of 1 cent per mile, this annual bonus is worth $100. This perk and the travel credit combined more than justify the card’s $395 annual fee each year.

Lounge access

As a Venture X Business primary cardholder, you get unlimited access to Capital One Lounges, currently open at:

Capital One also operates dining-focused “Landing” facilities at LaGuardia Airport (LGA) and Ronald Reagan Washington National Airport (DCA).

This card also includes access to Priority Pass lounges.

Without an eligible credit card, you can pay $90 for a lounge day pass. Five visits alone would cost $450 out of pocket, so you’ll make up the annual fee’s value quickly if you can take advantage of your Capital One Lounge access.

Other perks

On top of these benefits, the Venture X Business includes additional travel perks:

• Global Entry/TSA PreCheck credit: Up to $120 statement credit every four years
• Hotel perks: Access to luxury hotel bookings and elite-like benefits with Capital One’s Premier Collection

These benefits are more difficult to quantify, but they’ll provide added comfort and peace of mind during your travels.

Bottom line

If you can take advantage of key Venture X Business benefits, such as the annual travel credit and anniversary bonus miles, you can offset the card’s annual fee year after year.

However, if you can’t maximize the annual travel credit or airport lounge access, you may want to go with another of our favorite business credit cards. You may also want to consider a different card if you anticipate struggling to meet this card’s lofty welcome bonus spending requirements.

For more details, read our full review of the Venture X Business.

Learn more: Capital One Venture X Business

For rates and fees of the Amex Business Platinum, click here.

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

Source: thepointsguy.com