Our Verdict
The Plum Card® from American Express (Terms apply, see rates & fees) is useful for small business owners who want the option to either make an early payment and earn 1.5% cash back, or pay up to 60 days later without accruing interest (or earning cash back). As a charge card, the Amex Plum Card has no preset spending limit which gives your business flexible purchasing power.
But unless you plan to pay your bill early enough to earn rewards, there’s little in the way of extras or other card perks to justify the $250 annual fee.
Pros
- Up to 60 days to pay, interest-free
- 1.5% Early Pay Discount, with no cap on what you can earn back
- No foreign transaction fee
Cons
- High annual fee
- Lackluster benefits
Current American Express Plum Card Offer
- Paying early pays off: get an unlimited 1.5% Early Pay Discount on eligible charges within 10 days of your statement closing date and see the discount applied to your next statement when you pay at the least the Minimum Payment Due by the Please Pay By date.
- Take up to 60 days to pay with no interest‡, when you pay your minimum due by the Payment Due Date.
- Use the power of the Plum Card to buy big for your business.
- No Foreign Transaction Fees.‡
- Terms & Restrictions Apply.
Alternatives to the American Express Plum Card
Table of Contents
Introducing the American Express Plum Card
The Plum Card® from American Express is an intriguing option. This small business card earns 1.5% cash back on the portion of balance paid within 10 days of the statement closing date. Or, you can take up to 60 days to pay off the statement balance without accruing interest charges. However, you don’t earn any cash back that way.
The Amex Plum card also comes with a relatively steep $250 annual fee. If your business spends at least $16,700 annually and has the cash flow to pay off the card balance before the billing statement closes every time, you’ll come out ahead of the fee. But this doesn’t make this card the best choice, especially for those who may occasionally need to carry a balance or don’t spend that much annually on a credit card.
The Plum Card® from American Express includes purchase protection¹, car rental protections² and doesn’t charge foreign transaction fees, but does not earn Membership Rewards nor offer airline fee or technology statement credits like other Amex cards. These missing benefits could be useful for small business owners who travel frequently. It does come with several expense management tools to help track and organize your small business expenses, but these are standard on most small business cards.
Quick Facts
- $250 annual fee
- Earn 1.5% cash back on the portion of balance paid within 10 days of the statement closing date or receive up to 60 days to pay without interest
- Purchase and rental car protections
- No foreign transaction fees
What Is the American Express Plum Card Best For?
The American Express Plum Card could be beneficial for one of two types of business owners. First, if you are someone who treats a credit card like a debit card and pays off your balance as soon as possible, then the 1.5% Early Pay Discount that comes on the Plum Card could save you a lot of money in the long run. As long as you pay off your balance within 10 days, you’ll effectively get a discount on every purchase you put on this card.
The second type of business owner who could get value out of this card is someone with significant monthly expenses. Since purchases on this card do not accrue interest for 60 days, putting large expenses on this card can buy you more time to pay it off in comparison to other credit cards.
However, this could be a slippery slope, as it’s easy to put off payments when interest is not accruing. As long as you are on top of your payments and closely monitor that 60-day grace period, this card could provide you with a sort of flexible financing.
American Express Plum Card Rewards
Earning Rewards
The Plum Card® from American Express offers 1.5% cash back on the portion of balance paid within 10 days of the statement closing date. This rate applies to every purchase if you pay your statement within 10 days of closing, and there is no cap on how much you can earn.
When you need more time to pay your balance, this charge card offers up to 60 days to pay without interest. Only the minimum payment is due by the payment due date. If you choose this option, however, you won’t earn cash back.
Redeeming Rewards
Redeeming 1.5% cash back is simple: The Early Pay discount is automatically applied as savings on the next billing statement.
Rewards Potential
The rewards earned are straightforward: 1.5% cash back on the portion of balance paid within 10 days of the statement closing date. For example, if your business charges $10,000 in a statement period and pays the balance in time, you’ll earn a $150 cash credit toward the next month’s bill.
To determine the rewards potential of a credit card, Forbes Advisor uses the example of a sole proprietorship or small business. Based on government and industry sources, Forbes Advisor estimates that a sample small business has $39,337 in annual expenses that could reasonably be charged to a credit card. Assuming the card is paid within 10 days of the due date every single cycle, the card could earn $590.06 in statement credits each year.
The Plum Card® from American Express Rewards Potential
| Category | Earning Rate | Estimated Annual Spend | Estimated Annual Earnings |
|---|---|---|---|
|
Early Pay Discount on all purchases
|
1.50%
|
$39,337
|
$590
|
|
Total: $590.06
|
Other American Express Plum Card Benefits
- Employee cards. Control spending and earn the Early Pay Discount with employee cards at no additional cost.
- Expense management tools. Monitor expenses with account and transaction management, account alerts and expense summaries.
- Vendor pay by Bill.com. No monthly fee for the first user on the Basic plan and a $15 monthly fee for a second user after six months.
- Rental car insurance.² Rental vehicles can be covered for loss or damage with secondary coverage when you decline the rental company’s insurance and pay with your card.
- Global assist hotline.³ A 24/7 emergency assistance line for card members over 100 miles from home.
- No foreign transaction fees. Travel abroad without paying an additional fee on your purchases.
- Extended warranty.⁴ Up to one additional year of warranty on eligible purchases.
- Purchase protection.¹ American Express purchase protection offers up to 90 days of coverage on eligible purchases.
Fine Print
Interest Rates
- Regular APR: N/A
- Purchase intro APR: N/A
- Balance transfer intro APR: N/A
Fees
- Annual fee: $250
- Balance transfer fee: N/A
- Foreign purchase transaction fee: None
Terms apply. See rates & fees.
How the American Express Plum Card Stacks Up
The Plum Card® from American Express vs. Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card
The Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card earns 3% cash back in the category of choice, 2% cash back on dining purchases and unlimited 1% cash back on all other purchases. Earn 3% and 2% cash back on the first $50,000 in combined choice category/dining purchases each calendar year and 1% thereafter.
This credit card offers a welcome offer, which the Amex Plum Card does not, and also has no annual fee. The welcome offer is a $300 online statement credit after spending $3,000 in the first 90 days of account opening. This option is worth considering if the elevated earnings categories align with your business spending, especially if you qualify for Bank of America’s Preferred Rewards program which gets you increased earning rates of 25% to 75% more on your spending.
The Plum Card® from American Express vs. The American Express Blue Business Cash™ Card
The American Express Blue Business Cash™ Card offers 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%, without charging an annual fee (Terms apply, see rates & fees).
If you’re likely to put $50,000 or less per year on a business credit card, the Blue Business Cash card is an excellent pick for simple and generous cash-back rewards. Another benefit is the introductory APR offer on the Blue Business Cash: 0% intro APR on purchases for 12 months from the date of account opening, then a 18.49% - 26.49% variable APR applies.
The Plum Card® from American Express vs. Ink Business Unlimited® Credit Card
The Ink Business Unlimited® Credit Card earns 1.5% cash back rewards on every business purchase. When paired with the right card, like a premium Ultimate Rewards-earning Chase card such as the Chase Sapphire Preferred® Card, Chase Sapphire Reserve® or Ink Business Preferred® Credit Card, cash back can be converted to Chase Ultimate Rewards® points, which can offer significantly more value when used to book travel or other redemptions.
Earning 1.5% cash back rewards on every business purchase with no annual fee is a winning proposition for business owners who want easy rewards without hassle or stress.
The initial bonus offer on this card is lucrative as well: $750 bonus cash back after spending $6,000 on purchases in the first 3 months from account opening. You’ll also qualify for a 0% introductory APR for 12 months on purchases, then a 18.49% - 24.49% variable APR applies for purchases and balance transfers. A balance transfer fee of either $5 or 5% of the amount of each transfer, whichever is greater, applies. This can give you breathing room if you need to make a large purchase for your business and want extra time to pay it down without interest.
Is the American Express Plum Card for You?
The Amex Plum Card offers a straightforward 1.5% cash back on the portion of balance paid within 10 days of the statement closing date. But other cash-back business cards offer the same or better earning rates without having to pay your bill early. For some, the absence of a defined credit limit and the ability to carry a balance for 60 days without interest could provide an advantage to managing business cash flow.
Before applying for any small business card, make sure to consider your goals and business needs.
Find the Best Business Credit Cards of 2024
Methodology
Forbes Advisor considers a variety of criteria when assigning credit cards a rating. Cards are graded based on numerous factors including:
- Annual fees
- Welcome bonus offers
- Ongoing earning rates
- Value of individual points or miles
- Included travel or merchant credits
- Additional cardholder benefits
Card features we expect cardholders to use the most often are weighted more heavily in our ratings. Altogether, the factors came together to provide a star rating for each individual card.
Read more: How Forbes Advisor rates credit cards
To view rates and fees for The Plum Card® from American Express please visit this page.
To view rates and fees for The American Express Blue Business Cash™ Card please visit this page.
¹When an American Express® Card Member charges a Covered Purchase with their Eligible Card, Purchase Protection can help protect their Covered Purchases for up to 90 days from the Covered Purchase date if it is stolen or accidentally damaged. The coverage is limited up to $1,000 per occurrence, up to $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
²Car Rental Loss and Damage Insurance can provide coverage up to $50,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.
³You can rely on Global Assist Hotline 24 hours a day / 7 days a week for medical, legal, financial or other select emergency coordination and assistance services while traveling more than 100 miles away from your home. Third-party service costs may be your responsibility. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Card Members are responsible for the costs charged by third-party service providers.
⁴When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
