The Plum Card® from American Express Review

When it comes to business credit cards, American Express has long been a trusted name. One of its offerings, The Plum Card® from American Express, stands out with its unique payment flexibility and cash-back rewards. This card is designed for businesses that can benefit from its early pay discount and extended payment terms, but it comes with a high annual fee and several other considerations. In this comprehensive review, we’ll delve into the details of The Plum Card® from American Express, including its benefits, drawbacks, and whether it’s the right choice for your business.

The Plum Card® from American Express Review

The Plum Card® from American Express is a business credit card that offers a unique twist on cash-back rewards. Instead of the traditional points or miles, this card provides a straightforward, unlimited 1.5% cash back on the portion of your balance that you pay within 10 days of your statement closing date. This feature is designed to reward businesses that can pay off their balances quickly, which can be a significant advantage for those with steady cash flow.

Key Features

– Cash Back: Earn unlimited 1.5% cash back on the portion of your balance that you pay within 10 days of your statement closing date.
– Payment Flexibility: Enjoy up to 60 days to pay without interest, as long as you pay your minimum due.
– No Foreign Transaction Fees: Make international purchases without worrying about extra fees.
– Annual Fee: $250 annually.
– Good to Excellent Credit Required: A credit score ranging from 670 to 799 is recommended.

Rewards Structure

The Plum Card® from American Express offers a straightforward rewards structure. You earn 1.5% cash back on the portion of your balance that you pay within 10 days of your statement closing date. This means that if you can manage your cash flow effectively and pay off your balance quickly, you can maximize your rewards.

Payment Flexibility

One of the standout features of The Plum Card® is its payment flexibility. You have up to 60 days to pay your balance without incurring interest, as long as you pay your minimum due. This can be a significant advantage for businesses that need more time to manage their cash flow. Additionally, there is no preset spending limit, which means your purchasing power can adjust with your use of the card, your payment history, and other factors.

The Plum Card® from American Express Key Takeaways

Understanding the key takeaways of The Plum Card® from American Express can help you determine if it aligns with your business needs.

Advantages

– Early Pay Discount: Earn 1.5% cash back on the portion of your balance that you pay within 10 days of your statement closing date.
– Extended Payment Terms: Enjoy up to 60 days to pay without interest, as long as you pay your minimum due.
– No Foreign Transaction Fees: Save money on international purchases.
– No Preset Spending Limit: Flexible spending power that can adjust with your card usage.
– Travel Benefits: Includes car rental loss and damage insurance and global assist hotline.

Drawbacks

– High Annual Fee: The card comes with a $250 annual fee, which may be a deterrent for some businesses.
– Conditional Rewards: The 1.5% cash back is only available if you pay within 10 days of your statement closing date.
– No Introductory APR: There are no introductory APR offers for purchases or balance transfers.
– Good to Excellent Credit Required: A credit score of 670 to 799 is recommended, which may not be accessible for all businesses.

The Plum Card® from American Express Pros and Cons

Every credit card comes with its own set of pros and cons, and The Plum Card® from American Express is no exception. Here’s a detailed look at the advantages and disadvantages of this card.

Pros

Flexible Payment Days

One of the standout features of The Plum Card® is its flexible payment days. You have up to 60 days to pay your balance without incurring interest, provided you pay at least the minimum due. This can be incredibly beneficial for businesses that need more time to manage their cash flow.

Early Pay Discount

The card offers a unique early pay discount, allowing you to earn 1.5% cash back on the portion of your balance that you pay within 10 days of your statement closing date. This feature rewards businesses that can pay off their balances quickly, making it an attractive option for those with steady cash flow.

No Preset Spending Limit

The Plum Card® from American Express does not have a preset spending limit, which means your purchasing power can adjust with your card usage, payment history, and other factors. This can provide additional flexibility for businesses with varying spending needs.

No Foreign Transaction Fees

For businesses that frequently make international purchases, the absence of foreign transaction fees is a significant advantage. You can make purchases abroad without worrying about extra costs, making this card a good option for global business operations.

Cons

High Annual Fee

One of the main drawbacks of The Plum Card® is its high annual fee of $250. This can be a significant expense for small businesses or those that do not expect to take full advantage of the card’s benefits.

Conditional Rewards

The 1.5% cash back is only available if you pay within 10 days of your statement closing date. This condition may be challenging for businesses that cannot consistently pay off their balances quickly.

No Introductory APR

Unlike many other business credit cards, The Plum Card® does not offer an introductory APR for purchases or balance transfers. This lack of promotional financing options may be a disadvantage for businesses looking to carry a balance or transfer existing debt.

Good to Excellent Credit Required

The card requires a credit score ranging from 670 to 799, which means it may not be accessible for all businesses, particularly those with fair or poor credit.

The Plum Card® from American Express Benefits

Despite its drawbacks, The Plum Card® from American Express offers several benefits that can be advantageous for businesses. Let’s take a closer look at these benefits.

Cash Back Rewards

The primary benefit of The Plum Card® is its cash back rewards. By earning 1.5% cash back on the portion of your balance that you pay within 10 days of your statement closing date, you can effectively reduce your business expenses. This straightforward rewards structure is easy to understand and can be highly rewarding for businesses that can pay off their balances quickly.

Travel Benefits

The Plum Card® also offers several travel-related benefits, including no foreign transaction fees, car rental loss and damage insurance, and access to the global assist hotline. These features can be particularly valuable for businesses with employees who frequently travel internationally.

Car Rental Loss and Damage Insurance

As a cardholder, you can be covered for damage to or theft of a rental vehicle in a covered territory when you use your eligible card to reserve and pay for the entire rental and decline the collision damage waiver at the rental company counter. This insurance can provide peace of mind and financial protection when renting cars for business trips.

Global Assist Hotline

Whenever you travel more than 100 miles from home, you may be eligible for 24/7 emergency assistance and coordination services through the global assist hotline. This service includes medical, legal, and passport referrals, emergency cash wires, and missing luggage assistance, providing valuable support during travel emergencies.

Payment Flexibility

The Plum Card® offers significant payment flexibility, allowing you up to 60 days to pay your balance without incurring interest, as long as you pay your minimum due. This feature can help businesses manage their cash flow more effectively and provides additional time to pay off balances.

No Preset Spending Limit

The card’s lack of a preset spending limit means that your purchasing power can adjust with your card usage, payment history, and other factors. This flexibility can be beneficial for businesses with varying spending needs and can help ensure that you have the necessary funds available when you need them.

Purchase Protection

The Plum Card® includes purchase protection, which can cover eligible purchases made with the card against damage or theft for a certain period of time. This benefit can provide added security for your business purchases.

Extended Warranty Protection

The card also offers extended warranty protection, which can extend the manufacturer’s warranty on eligible purchases made with the card. This benefit can provide additional peace of mind and potential savings on repair or replacement costs.

Fraud Protection

American Express is known for its robust fraud protection measures, and The Plum Card® is no exception. The card includes fraud protection features that can help detect and prevent unauthorized transactions, providing added security for your business.

Conclusion

The Plum Card® from American Express is a unique business credit card that offers several attractive benefits, including a 1.5% cash back reward on the portion of your balance that you pay within 10 days of your statement closing date, payment flexibility, and no foreign transaction fees. These features can make it a valuable tool for businesses that can manage their cash flow effectively and pay off their balances quickly.
However, the card also comes with some drawbacks, including a high annual fee of $250, conditional rewards, no introductory APR offers, and a requirement for good to excellent credit. These factors may make it less suitable for some businesses, particularly those that cannot consistently pay off their balances quickly or those with fair or poor credit.
Ultimately, whether The Plum Card® from American Express is the right choice for your business will depend on your specific financial situation and needs. If you can take full advantage of the card’s benefits and manage the associated costs, it can be a valuable addition to your business financial toolkit. However, if the drawbacks outweigh the benefits for your particular circumstances, you may want to consider other business credit card options.