Capital One Venture Card (Visa Signature)
Updated September 22, 2020.
The Facts
The Math
When you are not using the frequent flyer miles transfer feature, this card is essentially a fixed value 2% rewards card with a $95 annual fee. In comparison, there are a few non-annual-fee cards that offer 2% cashback (such as Fidelity Visa and Citi Double Cash). In addition, Alliant Visa Signature offers 2.5% cashback with a lower annual fee ($59, also waived for the first year). In this way, Capital One Venture is not that attractive other than its signup bonus. However, the frequent flyer miles transfer feature introduced in 2018 does separate Venture from its cashback competitors, because you might achieve higher rewards value and/or get yourself into premium cabin which you won't otherwise spend your cash on. Our current valuation of Capital One Miles is 1.1 cent per mile based on its frequent flyer partners, so that Venture returns 2.2% on paper. To beat 2% cashback offered by the competitors and the $95 annual fee, you will need to spend $47,500 per year on Venture. This requirement seems high, and you do need to realize that we are technically comparing apples and oranges, as cashback and frequent flyer miles are two very different redemption concepts.
Venture vs. VentureOne: Since Venture has a $95 annual fee, you need to spend $12,667 per year to better out VentureOne ($12,667 x 0.75 mile/$ x 1 cent/mile = $95).
The Conclusion
With the demise of Charles Schwab Visa in 2011, Capital One gained great market share with its Venture card. However, when the market was being filled with several cards that offer 2% cashback with no annual fees, Venture slowly lost its appeal. In 2018, Capital One surprised us in bringing the frequent flyer miles transfer feature, which suddenly made this card interesting again.
The Facts
- Annual Fee: $95
- Signup Bonus: up to 100,000 Miles (50,000 Miles after spending $3,000 within 3 months of new account opening, and additional 50,000 Miles after spending a total of $20,000 within 12 months). Please keep in mind that unlike other credit card issuers, Capital One pulls all three of credit reporting agencies when you open a new account. Historical best bonus of this card: (1) up to 100,000 Miles with 1st year annual fee waiver in 2011 & 2012; (2) 100,000 Miles with $20K spending requirement in 2020; (3) 75,000 Miles with 1st year annual fee waiver in 2018.
- Application Landing Page
- Rewards: 2x everywhere
- Best Use of Capital One (Venture) Miles: You may redeem your Miles for travel, gift cards, charity, etc. at exactly 1 cent per mile, or for cash at 0.5 cent value. The fixed value travel rewards can be achieved by either booking future travel through Capital One's travel portal or receiving statement credit for any travel expense within the last 3 months. In addition to fixed value redemption options, you may also transfer your Miles to "real" miles/points of the following frequent traveler programs: Aeromexico, Air Canada Aeroplan, Alitalia, Avianca, Cathay Pacific, Emirates, Etihad, EVA, Finnair, FlyingBlue (Air France & KLM), JetBlue, Qantas, Singapore, Accor Live Limitless (1,000 Miles = 500 points), and Wyndham Rewards, mostly with a transfer ratio of 1,000 Capital One Miles = 750 frequent traveler miles/points. In this way, the value of Miles depends on how you redeem your frequent traveler miles/points of the specific program you choose to transfer to. Note that you can only transfer your Capital One Miles to a frequent traveler program under your name. You may also share your Miles with another Capital One cardmember without being charged a fee. To find out about the competing programs that allow frequent flyer miles transfer, see our featured review Marriott vs. MR vs. UR vs. TY vs. CR.
- Other Benefits: (1) Reimbursement for Global Entry or TSA PreCheck application fees (up to $100). (2) No foreign transaction fees. (3) No over-limit fees.
- Other Facts: Don't confuse this card with the non-fee VentureOne Visa Signature which offers 1.25 Miles on everything. This card has a metal design and weighs about 15 grams, three times as heavy as regular plastics.
- The History: The hugely popular FIA Charles Schwab Visa which offers unlimited 2% cash back without a annual fee and foreign transaction fees was discontinued to new applications in 2010 while keeping existing customers. Capital One rolled out its Venture trying to fill the gap. In August 2011, FIA started replacing the existing cards with BofA cash rewards cards (1% on general spending) and we were not surprised to see many FIA card members picking up Capital One Venture. The annual fee is increased from $59 to $95 in 2017. Global Entry / TSA PreCheck credit is added in 2018. In December 2018, Capital One introduced the frequent flyer miles transfer feature with 12 partner programs. The first annual fee waiver was discontinued as of May 2020.
The Math
When you are not using the frequent flyer miles transfer feature, this card is essentially a fixed value 2% rewards card with a $95 annual fee. In comparison, there are a few non-annual-fee cards that offer 2% cashback (such as Fidelity Visa and Citi Double Cash). In addition, Alliant Visa Signature offers 2.5% cashback with a lower annual fee ($59, also waived for the first year). In this way, Capital One Venture is not that attractive other than its signup bonus. However, the frequent flyer miles transfer feature introduced in 2018 does separate Venture from its cashback competitors, because you might achieve higher rewards value and/or get yourself into premium cabin which you won't otherwise spend your cash on. Our current valuation of Capital One Miles is 1.1 cent per mile based on its frequent flyer partners, so that Venture returns 2.2% on paper. To beat 2% cashback offered by the competitors and the $95 annual fee, you will need to spend $47,500 per year on Venture. This requirement seems high, and you do need to realize that we are technically comparing apples and oranges, as cashback and frequent flyer miles are two very different redemption concepts.
Venture vs. VentureOne: Since Venture has a $95 annual fee, you need to spend $12,667 per year to better out VentureOne ($12,667 x 0.75 mile/$ x 1 cent/mile = $95).
The Conclusion
With the demise of Charles Schwab Visa in 2011, Capital One gained great market share with its Venture card. However, when the market was being filled with several cards that offer 2% cashback with no annual fees, Venture slowly lost its appeal. In 2018, Capital One surprised us in bringing the frequent flyer miles transfer feature, which suddenly made this card interesting again.
