Is the Southwest Premier Business Card Worth Its Annual Fee?

February 13, 2020




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If you are looking for a new credit card for your business, one card to consider is the Southwest Rapid Rewards® Premier Business Credit Card.

The annual fee for this card is $99, which is within the standard range for many other travel and airline cards, including the Southwest Rapid Rewards® Premier Credit Card.

» Learn more: Which Southwest Airlines credit card should I get?

Here are some things to consider as you decide if the Southwest Rapid Rewards® Premier Business Credit Card is worth the annual fee for you.

Will you meet the minimum spending requirement?

The easiest way to maximize your cardholder benefits is to pursue earning the welcome bonus by meeting the minimum spend requirement. Here’s the current offer: Earn 60,000 points after you spend $3,000 on purchases in the first 3 months your account is open.

We estimate this sign-up bonus to be worth about $840 based on NerdWallet’s valuation of Rapid Rewards points.

Will you find additional card perks valuable?

Even in subsequent years, there are several other features of this card that can also help make the annual fee worth it.

Annual bonus points

A unique feature of the Southwest Rapid Rewards® Premier Business Credit Card is that you’ll receive 6,000 bonus points every year after your cardmember anniversary. This would be worth about $84 in airfare based on our valuation of these points.

2x points on Southwest purchases

When you purchase Southwest Airlines flights on your Southwest Rapid Rewards® Premier Business Credit Card, you’ll get 2 points for every $1 spent on qualifying airfare. This can be helpful toward earning points to book your next vacation or business trip.

» Learn more: Guide to earning Southwest Airlines Rapid Rewards points

Baggage delay insurance

If you use your Southwest Rapid Rewards® Premier Business Credit Card to book your airfare and your baggage is delayed by at least six hours, you can be reimbursed for essentials like toiletries and clothing (up to $100 a day for three days). This can help give you peace of mind while traveling.

Lost luggage reimbursement

Luggage accidents happen. When you purchase airfare using the Southwest Rapid Rewards® Premier Business Credit Card, if your checked or carry-on bags are damaged or lost by the carrier, you’re covered for up to $3,000 per passenger (including your immediate family members). This is a great benefit to have — and like the baggage delay insurance, it can help take some of the stress out of traveling.

The bottom line

If you’ll earn the sign-up bonus and use these additional benefits, the $99 annual fee could certainly be worth it for the first year.

Then, because you’ll receive 6,000 bonus points after your cardmember anniversary each year, the card is worth holding onto if you fly Southwest Airlines several times a year.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2020, including those best for:

Planning a trip? Check out these articles for more inspiration and advice:
Find the best travel credit card for you
8 valuable benefits of Southwest Airlines credit cards
Earn more points and miles with these 6 strategies