Southwest Rapid Rewards Performance Business Credit Card Review

Full Review of Southwest Rapid Rewards Performance Business Credit Card

Pros Explained

• Multiple points bonus: The points bonus with this card comes with fairly hefty spending requirements. Spending $5,000 in your first three months after opening an account earns you 80,000 points, worth an estimated $1,200 when used for Southwest(R) flights (using Investopedia’s valuation of these points at 1.50 cents each). In addition to the one-time offer, your account receives 9,000 points on each card anniversary. Worth about $135, the value of the annual bonus justifies a portion of the card’s $199 annual fee. The good news: These bonus points count towards reaching the 125,000 annually that are required to earn a free Companion Pass. The bad: They’re not “tier points,” the ones that help you achieve Southwest(R)’s A-List and A-List Preferred tiers, which you can reach only through points earned through spending. The card also gives you a bonus of 1,500 of these tier-qualifying points for every $10,000 you spend.
• Respectable rewards, even on some non-Southwest(R) spending: At 4X points on Southwest(R) purchases, the rewards the Southwest(R) Rapid Rewards(R) Performance Business provides for Southwest(R) spending is more than decent. That’s to be expected for a card that’s co-branded with an airline. Less common from such a card are the 2X rewards for some common business expenses and commuting categories. With their collective value of almost 2X points, those earnings compete well with—if not exceed—what you might make on purchases of advertising or telecom services with many other small-business cards. You can also earn 3X points on Rapid Rewards(R) hotel and car partners.

Cons Explained

• Annual fee and bonus spending threshold are on the high side: While there are premium co-branded cards with annual fees of $500 or more, the majority of such cards cost $100 or so. That makes the $199 fee for the Southwest(R) Rapid Rewards(R) Performance Business on the high side, and it lacks the luxury benefits such as lounge access that are common to the premium cards. Similarly, this card’s one-time offer is comparable with those of many of the co-branded airline cards costing about $100, in terms of both the number of points and the bonus’s total value. As a general rule of thumb, the more perks and rewards a business travel credit card offers the higher the annual fee. This card is no exception, with an annual fee of $199. Compared to the Southwest(R) Rapid Rewards(R) Premier Business Credit card or the Chase Ink Business Preferred card, it's about twice as expensive. 
• No points transfer to other loyalty programs: You can't transfer points earned with the Southwest(R) Rapid Rewards(R) Premier Business to any other loyalty program. You can, however, use Rapid Rewards(R) points to redeem for international flights with several airlines, as well as for hotel stays, car rentals, and merchandise with a number of Southwest(R) partners. The caveat is that the value you’ll get from points is likely to be a third to a half lower for these uses than when points are redeemed for Southwest(R) flights.
• Subpar customer service to businesses from card issuer: Businesses don’t necessarily interact with their credit card issuer very often. But when that’s necessary, it’s often a matter of some urgency and even stress, and you want a satisfying experience. Unfortunately, that’s less likely to be the case for businesses that deal with Chase, which issues Southwest(R) Rapid Rewards(R) Performance Business, than with most other card issuers. In the 2021 J.D. Power U.S. Small-Business Credit Card Customer Satisfaction Study, Chase ranked seventh out of eight card issuers and scored below average.

The Southwest(R) Rapid Rewards(R) Performance Business could be well suited even to business travelers who fly with Southwest(R) only a few times a year. In part, that’s because the card’s annual 9,000-point anniversary bonus is (at an estimated value of 1.50 cents per point) worth $135 when used for Southwest(R) flights. The card offers further value to cardholders beyond gaining miles. Rebates on in-flight WiFi (limited to 365 $8 credits per year) and the $100 credit for TSA PreCheck or Global Entry (every four years), could easily provide more than $200 in total annual value when combined with the miles you accumulate.

As far as rewards go, this card is also especially well-suited to businesses who are seeking better rewards on commuting, advertising, and telecom expenses than the single point or cent most cards provide. If you're happy earning points that are best redeemed for Southwest(R) flights, the 2 points per dollar the Southwest(R) Rapid Rewards(R) Performance Business provides on this spending may be a fine option. This earning potential is further bolstered by 4 points per dollar on Southwest purchases and 3 points per dollar on Rapid Rewards hotel and rental car partners.

Southwest Rapid Rewards Performance Business Credit Card One-Time Offer

This card has a one-time offer that’s generous, if a bit onerous, in terms of spending. You can earn 80,000 points if you spend $5,000 within the first three months after opening the card’s account—in other words, an average of about $1,667 monthly. Those 80,000 points would be worth approximately $1,200 in reward travel, based on our valuation of 1.50 cents for Southwest(R) points when used for flights on the carrier.

Rewards Earning Details

This card features three bonus points earning tiers, which together afford plenty of opportunities to accrue points toward free flights. 

First, you can earn 4X points on Southwest(R) purchases made directly with Southwest(R). That includes:

• Flights
• In-flight purchases
• Southwest(R) gift cards
• Southwest(R) Vacations package purchases

You can also earn 3X points on Southwest(R) partners through the following:

• Purchases made at participating Rapid Rewards(R) hotel and rental car partners

Points are unlimited so the more you spend, the more you can earn. You can earn 2X points on:

• Internet, cable, and phone services
• Social media and search engine advertising
• Local transit and commuting, including rideshares

Lastly, you can earn 1X points for all other purchases. That means you can get rewarded on everything from office supplies to dinner with clients, again with no limits or spending caps. 

In addition, each year on your card anniversary, you receive 9,000 bonus points. This recurring bonus is worth about $135 a year. 

Rewards Redemption Details

Points earned with the Southwest(R) Rapid Rewards(R) Performance Business Credit Card can be redeemed in a number of ways. You can use them for:

• Southwest(R) flights
• International flights with over 50 global carriers
• Gift cards
• Hotel stays
• Car rentals
• Merchandise

In terms of stretching the value of your points, the best option is to book flights with Southwest(R). Redemptions with other air carriers typically offer less value, and those for gift cards and merchandise typically offer the least return of all for your points. 

Southwest(R) makes it a little tougher than some carriers to determine how far your points will take you since the airline doesn't publish an awards chart. But doing a few sample bookings can give you at least a rough idea of the points required to award seats to destinations that interest you. There are three fare classes: Business Select, Anytime and Wanna Get Away. Business Select fares require the most points, while Wanna Get Away fares require the least. 

Price aside, a key difference between Business Select and Anytime fares is that the points required to book them are refundable, whereas those for Wanna Get Away fares are not. So while you could save some points by going for the lower fare, you would lose the entire amount in the event you need to cancel your trip. Southwest has no change fees, but you do have to pay any fare differences.

Some business travel cards have restrictions on when and how you can redeem rewards for award travel. This card makes booking business trips as simple as possible by allowing you to redeem points for flights on Southwest(R) or international airlines with no blackout dates or restrictions. 

Transferring Points

Points earned with this card don't transfer to other frequent-flyer programs. However, you can use them to redeem points for international flights with more than 50 carriers.

How to Maximize Your Rewards

Any time you're earning travel rewards, it's helpful to look at how you can maximize your earnings. Here are two examples of different spending scenarios and the points you could earn. 

Average case

Let's say you have a small business and you're the sole proprietor. You spend $12,000 a year on business travel with Southwest(R), $12,000 on advertising and telecom bills, and $12,000 on other business purchases. 

Altogether, that spending would earn you 84,000 points annually. $12,000 x 4 spent on Southwest(R) flights is 48,000 points. Then $12,000 x 2 points per dollar on the ads and telecom spending is 24,000 points. Finally, $12,000 x 1 point per dollar on the miscellaneous spending is 12,000 points. Add in the 9,000-point anniversary bonus and you'd have 93,000 points to work with. If you always redeem for Southwest(R) flights, those points would be worth $1,395 in travel value, assuming you indeed earn our estimated average value of 1.50 cents per point. 

Aspirational case

Now, let’s say you have five employees, all of whom have cards on the account, and that the total spending for all of you comes to triple the average amounts above $36,000 for Southwest(R) purchases, $36,000 for advertising and telecom bills, and $36,000 for other purchases. 

In that case, you'd earn 252,000 points annually. $36,000 x 4 points on Southwest(R) flights is 144,000 points. Then $36,000 x 2 points per dollar on the ads and telecom spending is 72,000 points. Finally, $36,000 x 1 point per dollar on the miscellaneous spending is 36,000 points. With the anniversary bonus of 9,000 points, you'd have 261,000 points to work with. That could be worth $3,915 in travel value if you're booking Southwest(R) flights. 

You can also earn up to 100,000 points annually when you refer friends who qualify for and open a Southwest(R) Rapid Rewards(R) Performance Business account. You'll get 20,000 points for each friend or business that gets the card up to the limit.

Southwest Rapid Rewards Performance Business Credit Card’s Outstanding Benefits

This card comes with several added travel benefits that make it an exceptional choice.

• Upgraded boardings: Cardmembers can also enjoy up to four upgraded boardings per year when they're available. Upgraded boardings are reimbursed to you as a statement credit. 
• TSA PreCheck or Global Entry fee credit: When you charge TSA PreCheck or Global Entry to your card, you can get up to a $100 statement credit toward the application fee. This benefit is available every four years. 
• In-flight Wi-Fi credits: If you purchase inflight Wi-Fi when traveling, you can get a credit for that as well. Cardmembers are eligible to receive 365 $8 credits per year. 

Standard Benefits

You also get these benefits as a cardmember:

• Purchase protection and extended warranty protection
• Baggage-delay insurance
• Lost-luggage reimbursement

Cardholder Experience

The Southwest(R) Rapid Rewards(R) Performance Business card is issued by Chase, which ranked seventh out of eight card issuers in J.D. Power’s 2021 U.S. Small Business Credit Card Study. Chase's score was below average.

If you need customer service support, log in to your online account to send a secure email. You can also call 1-800-242-7338 or reach out to Chase via Twitter at @ChaseSupport at any time. 

Security Features

Chase, the card issuer, takes standard security measures to protect your card and account information. For example, cards come with chip technology and you have the option to set up fraud notifications or alerts to monitor account activity. 

Fees to Watch Out For

The Southwest(R) Rapid Rewards(R) Performance Business card has the typical fees you'd expect, though the cash advance fee is a bit more than what other cards charge. One fee upside, though, is that you'll pay no foreign transaction charge for purchases made with foreign vendors. 

Final Verdict

The Southwest(R) Rapid Rewards(R) Performance Business is a great option if you don't want to commit to the higher annual fee for a luxury travel card, but still want more rewards and benefits than a standard business travel card offers. You shouldn't find it difficult to earn enough rewards to easily justify the annual fee—especially after the value of the annual points bonus is taken into account—if you travel regularly with Southwest(R).

Frequently Asked Questions

How hard is it to get approved for the Southwest Business credit card?

You need a good or excellent credit score to be approved for the Southwest Business credit card, which is something that takes time and effort. Applying for the card is a fairly simple process once you assess your eligibility to see which card works best for you.

What credit score do you need for the Southwest Rapid Rewards Premier credit card?

You'll need a credit score within the range of 690 to 850 to qualify for the Southwest Business Rapid Rewards Premier card, which is a good or excellent credit score.

Do you get a companion pass with the Southwest Business credit card?

Southwest Business Rapid Rewards credit card members will receive a boost of 10,000 Companion Pass qualifying points every year as an exclusive benefit.