The Plum Card® from American Express is a unique business charge card designed to cater to the needs of companies with variable cash flow. This card offers a generous 1.5% cash back on all purchases when payments are made within 10 days of the statement closing date, making it an attractive option for businesses looking to maximize returns on their spending.
Unlike traditional credit cards, The Plum Card® allows cardholders to carry a balance with no interest and provides them with a split payment option, giving businesses more flexibility in managing their finances. However, potential cardholders should be aware of the card’s $250 annual fee and lack of a welcome bonus before making a decision.
Despite the apparent drawbacks, many business owners have found The Plum Card® to be invaluable in separating business and personal credit while providing additional financial flexibility. In this review, we will delve deeper into the features, benefits, and potential drawbacks of this Amex charge card to help you determine if it’s the right choice for your business.
The Plum Card Benefits
The Plum Card® from American Express offers small business owners a unique set of benefits that focus on flexible payment options and cashback rewards. One of the main features of this card is the ability to earn 1.5% cash back on the portion of the balance paid within 10 days of the statement closing date.
Another attractive benefit for businesses with irregular cash flow is the extended payment terms offered by the Plum Card. Cardholders can choose to take up to 60 days to pay their balance without incurring interest or late fees, providing a helpful cash flow management tool for business owners .
While the card does come with a $250 annual fee, the unique cash back and payment flexibility features can outweigh the fee, especially for businesses that could benefit from the extended payment terms or consistently pay early to earn cash back rewards.
In addition to the financial benefits, the Plum Card also offers some basic protection for business purchases. This includes purchase protection against accidental damage or theft and extended warranty coverage on eligible purchases. This added layer of protection can provide peace of mind for small business owners when making significant purchases for their companies.
Interest-Free Payment Period
The Plum Card® from American Express is a unique charge card that offers businesses flexibility when it comes to payment options. One of the key features that sets it apart from other business cards is its interest-free payment period. Usually, charge cards require the balance to be paid in full each month, but with the Plum Card, cardholders can take advantage of an up to 60-day interest-free period.
This extended payment window is designed to accommodate businesses with irregular cash flow, providing them with the ability to delay payment for up to 60 days without incurring interest charges. To qualify for this grace period, customers must make a minimum payment by the due date. The exact terms of this feature can be found in the card’s rates and fees section.
In addition to the interest-free payment period, the Plum Card offers another payment incentive for businesses. Cardholders who choose to pay their bill early can earn a 1.5% discount on the portion of the balance paid within 10 days of the statement closing date. This can result in significant savings for businesses that are able to pay off their balance ahead of schedule.
Overall, the interest-free payment period and early payment discount make the Plum Card from American Express a potentially valuable financial tool for small businesses with fluctuating cash flows, offering flexibility and cost-saving benefits.
Annual Fee & Discounts
The Plum Card® from American Express is a unique credit card that offers annual fee and discount opportunities for its cardholders. One of the primary features of this card is the option to choose between a pay-in-full or pay-over-time payment structure, allowing businesses to manage their cash flow more effectively.
Regarding the annual fee, The Plum Card® typically charges a $250 annual fee. However, the card offers an introductory promotion where the annual fee is waived for the first year. This can be an added incentive for new cardholders as they decide if the Plum Card benefits and rewards outweigh the annual cost.
As for discounts, The Plum Card® offers an Early Pay Discount program. Cardholders can receive a 1.5% discount on the amount paid within ten days of the statement closing date, provided they pay at least their minimum payment due. This rewards businesses for paying their balances early, potentially leading to significant savings.
Another notable discount feature is the Global Assist® Hotline, which provides access to medical, legal, financial, and emergency assistance when traveling more than 100 miles from home. While this service is not a monetary discount, it can provide valuable assistance and peace of mind for cardholders at no additional cost.
The flexible payment options, annual fee waiver for the first year, early pay discounts, and additional benefits make The Plum Card® from American Express an attractive option for businesses looking to manage cash flow and expenses effectively.
Cash Flow Management Tools
The Plum Card® from American Express offers unique cash flow management tools designed for small- to medium-sized businesses. These features can help to manage cash flow efficiently and provide flexibility when it comes to payment options.
First, cardholders can earn a 1.5% cash back reward on the portion of their balance paid within 10 days of the statement closing date. This early pay discount encourages businesses to pay off balances promptly and provides a nice incentive for doing so.
Additionally, the card allows businesses to take up to 60 days to pay their balance without incurring any interest. This flexibility can be especially beneficial for companies that experience variable cash flow, giving them the opportunity to manage payments without the pressure of a strict due date.
It is important to note that The Plum Card® from American Express is a charge card, not a traditional credit card. This means that the balance must be paid in full within the specified timeframe, but it can help businesses maintain discipline and avoid accumulating long-term debt.
Customer Service & Support
The Plum Card® from American Express offers a variety of customer service and support options to cardholders. One of the key features is their dedicated phone line for business and corporate card members, providing prioritized service and availability to address any inquiries or concerns.
Cardholders can also access the customer support through the American Express website and mobile app. The website offers an extensive help center with frequently asked questions about account management, rewards, and more. Additionally, live chat support is available within the mobile app to assist with any inquiries you may have.
Other support services include:
- Dispute Resolution: Amex offers a streamlined process for disputing transactions, providing an easy and fast way to resolve any issues with your account.
- Account Alerts: You can set up customizable alerts for your account, such as payment due dates or irregular transaction notifications, to help keep track of your expenses.
- Access to Emergency Services: In case of an emergency, American Express provides services such as emergency card replacement, access to cash advances, and assistance with travel arrangements.
Taking advantage of these customer service and support features ensures a smooth and enjoyable experience with The Plum Card® from American Express.
Comparison with Other Business Credit Cards
The Plum Card® from American Express offers some unique benefits for small business owners, but it’s essential to consider how it stacks up against other popular business credit cards. Here we’ll compare the Plum Card with some of its top competitors:
Chase Ink Business Cash℠ Card
The Chase Ink Business Cash℠ Card is a popular choice among small business owners because it offers a $750 cash bonus after spending $7,500 within the first three months. The card also provides 5% cash back on the first $25,000 spent in combined purchases on office supplies, internet, cable and phone services each year, and 2% cash back on the first $25,000 spent in combined purchases in gas stations and restaurants each year, with no annual fee.
American Express Business Gold Card
The American Express Business Gold Card has an annual fee of $295 and offers 4x Membership Rewards points on the two categories where your business spends the most on up to $150,000 in combined category purchases per calendar year, making this card suitable for businesses that want to earn travel rewards. It also offers a 25% airline bonus when using points to book flights through the American Express Travel website.
Capital One Spark Cash for Business
With the Capital One Spark Cash for Business card, business owners can earn 2% cash back on all purchases, making it easy and straightforward to accrue rewards. There’s a $500 cash bonus after spending $4,500 within the first three months of opening the card and an annual fee of $95 that’s waived in the first year.
The Plum Card, with its unique option to either earn 1.5% cash back when paying early or defer payments up to 60 days, is best suited for businesses with variable cash flow. While it lacks the welcome bonus and higher cash back rates offered by some of its competitors, its flexible payment structure can be a valuable feature for certain businesses.
Conclusion
The Plum Card® from American Express is a unique business charge card that offers flexibility and cash back rewards for small business owners. With its 1.5% cash back rewards on the portion of the balance paid within 10 days of the statement closing date, this card can be a valuable asset for businesses looking for more control over their cash flow.
As a charge card, The Plum Card® from American Express does not have a preset spending limit, which can be helpful for businesses that require a higher level of flexibility in their spending. However, it’s important to note that the balance must be paid in full each month, or cardholders can choose to take up to 60 days to pay without interest, as long as they pay at least 10% of the balance.
Some users have praised The Plum Card® from American Express for its ability to help manage their business’s cash flow and separate their personal and business finances, as seen on Credit Karma.
In summary, The Plum Card® from American Express may be a good option for small businesses that can benefit from the flexibility of a charge card and cash back rewards. Business owners should carefully evaluate their business’s needs and spending habits before deciding if this card is the right fit for them.