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The Plum Card® from American Express: A Comprehensive Review
February 6, 2025
Are you a business owner looking for flexibility in how you manage your expenses? The Plum Card® from American Express might be worth considering. This unique business card offers features designed specifically to help with cash flow management, providing options that traditional business credit cards typically don't offer.
In this comprehensive review, we'll explore everything you need to know about the Plum Card® from American Express, from its distinctive payment options to how it compares with other business cards on the market.
What Is The Plum Card® from American Express?
The Plum Card® from American Express is a charge card designed specifically for businesses that need flexibility with their payment schedules. Unlike traditional credit cards, the Plum Card® from American Express comes with no preset spending limit, which means your purchasing power can adjust based on factors like your payment history, credit history, and business spending patterns.
One of the most distinctive features of The Plum Card® is its unique payment structure. Cardholders can choose between two flexible payment options:
- Early Pay Discount: Pay within 10 days of your statement closing date and receive a 1.5% discount on eligible purchases.
- Extra Days to Pay: Take up to 60 days to pay with no interest, giving your business additional time to manage cash flow effectively.
The card does come with an annual fee of $250, which is waived for the first year. While this fee is higher than some other business cards, the potential savings through the early pay discount can offset this cost for businesses with substantial monthly expenses.
The Plum Card® from American Express Pros & Cons
Pros:
- Early Pay Discount: The 1.5% discount for early payment effectively works as an unlimited cash back program for businesses that can pay quickly.
- Extra Time to Pay: Up to 60 extra days to pay without interest provides exceptional flexibility for managing cash flow.
- No Preset Spending Limit: Your purchasing power can adapt based on your business's financial profile and spending patterns.
- No Foreign Transaction Fees: Save on international purchases with zero foreign transaction fees.
- Employee Cards: Add employee cards at no additional cost, making expense tracking easier.
- Business Management Tools: Access to American Express's robust suite of business management and reporting tools.
Cons:
- Annual Fee: The $250 annual fee (waived for the first year) is higher than many competing business cards.
- American Express Acceptance: Despite improvements, American Express cards still have slightly lower merchant acceptance compared to Visa and Mastercard.
- No Traditional Rewards Program: Unlike many business cards, The Plum Card® doesn't offer points or miles for purchases outside of the early payment discount.
- Charge Card Structure: As a charge card, the balance must be paid in full (or according to the flexible payment options), without the option to carry a balance indefinitely.
- Approval Process: May require good to excellent business credit scores and personal credit scores for approval.
Who Is The Plum Card® from American Express For?
The Plum Card® from American Express is ideal for established business owners who:
- Have Irregular Cash Flow: Businesses with seasonal fluctuations or irregular revenue streams can benefit from the extra days to pay without incurring interest charges.
- Make Large Monthly Purchases: The early pay discount becomes more valuable with higher monthly spending, effectively generating more cash back.
- Have Good to Excellent Credit: The approval process typically requires strong personal credit scores and business credit scores.
- Pay Bills in Full: Businesses that typically pay their credit card bills in full will benefit most from the card's structure.
- Need Spending Flexibility: Companies that require varying spending limits throughout the year will appreciate the no preset spending limit feature.
The card is less suitable for:
- Startups with limited credit history
- Businesses looking for traditional rewards like travel points or miles
- Small businesses with minimal monthly expenses that wouldn't offset the annual fee
- Companies that regularly need to carry balances for extended periods
Comparing The Plum Card® with Other Credit Cards
When considering the Plum Card® from American Express, it's helpful to compare it with other popular options in the business credit card category:
Capital One Venture X Business (rates & fees):
- Annual fee: $395
- Sign-up bonus: Substantial miles bonus after meeting spending requirements
- Key rewards: 10X miles on hotels and rental cars, and 5X on flights and vacation rentals booked through Capital One Travel
- Standout feature: 10,000 bonus miles each account anniversary
Ink Business Preferred® Credit Card:
- Annual fee: $95
- Sign-up bonus: Large points bonus after meeting spending requirements
- Key rewards: 3X points on travel, shipping, internet, cable, phone services, and advertising purchases made with social media sites and search engines on the first $150,000 spent
- Standout feature: Cell phone protection when you pay your monthly cell phone bill with your card
The Business Platinum Card® from American Express (rates & fees):
- Annual fee: $695
- Welcome offer: Substantial points bonus after meeting spending requirements
- Key rewards: 5X points on flights and prepaid hotels booked through Amex Travel, 1.5X points on eligible purchases of $5,000 or more, up to $2 million per calendar year
- Standout feature: Access to over 1,400 airport lounges worldwide, access is limited to eligible Card Members
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more. 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.
Each card offers unique benefits tailored to different spending habits and preferences. Consider your personal financial goals when choosing the best card for you.
Key Takeaways:
- Plum Card® from American Express excels in providing its cardholders with two flexible payment options
- Capital One Venture X Business offers high travel rewards
- Ink Business Preferred® provides strong points on business-related categories
- The Business Platinum Card® from American Express features premium travel perks
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Consider Using Kudos
While the Plum Card® from American Express offers valuable flexibility for businesses, you can maximize your credit card benefits even further by using Kudos, a free AI-powered browser extension. Kudos works seamlessly alongside your existing credit cards to help you optimize your rewards whenever you shop online.
For business owners using The Plum Card® or any other credit cards, Kudos can:
- Automatically recommend which of your credit cards will earn the most rewards for each purchase
- Work with over 15,000 online stores, ensuring broad coverage for all your business needs
- Multiply your rewards up to 5X during exclusive "Flash Boost" events
- Help discover new credit cards that might better align with your specific business spending patterns
If you're looking to get more out of your credit cards, including the Plum Card® from American Express, Kudos is the best free shopping app to use when you shop online. And, they're currently offering $20 back after your first eligible purchase — just sign-up for free with code "GET20" and make a purchase at a Boost merchant.
Our Expert Takeaway
The Plum Card® from American Express offers a unique value proposition in the business credit card market. Its flexible payment options make it stand out as a specialized tool for businesses with varying cash flow needs. While the $250 annual fee (waived for the first year) is significant, businesses that regularly make large purchases and can pay early will find substantial value through the 1.5% discount.
The card's no preset spending limit feature provides valuable flexibility for businesses with varying purchase needs throughout the year. However, it's important to understand that this doesn't mean unlimited spending – your purchasing power adjusts based on factors including your payment history, credit history, and demonstrated spending patterns.
For businesses primarily concerned with traditional rewards like points or miles, other cards might be more suitable. But for those who prioritize payment flexibility and cash flow management, the Plum Card® from American Express offers benefits that few other cards can match.
When combined with tools like Kudos to optimize your overall credit card strategy, the Plum Card® from American Express can be a powerful addition to your business financial toolkit.
The Plum Card® from American Express FAQ
What credit score do I need for The Plum Card®?
The approval process for The Plum Card® typically requires good to excellent credit. While American Express doesn't publish specific score requirements, business owners with personal credit scores above 670 and established business credit scores have the best approval chances. American Express also considers your business's revenue, length of operation, and payment history during the application review.
How does the "no preset spending limit" feature work?
The no preset spending limit doesn't mean unlimited spending. Instead, your purchasing power adjusts based on your payment history, credit history, purchase history, and business financial indicators. This flexible approach allows your spending capacity to grow with your business's needs and financial strength, unlike traditional cards with a fixed set limit.
Can I really take 60 days to pay without interest?
Yes, The Plum Card® allows you to take up to 60 days to pay your balance without incurring interest charges or penalties. Specifically, you need to pay at least the minimum payment due by the payment due date (typically 25 days after the statement closes). Then, you have up to 60 days from the statement closing date to pay the remaining balance without interest. This feature is particularly valuable for managing cash flow during tight periods.
Is the 1.5% early pay discount worth it?
The value of the 1.5% discount depends on your business's spending volume and payment capabilities. For a business spending $20,000 monthly that can consistently pay early, the discount would generate $300 in monthly savings or $3,600 annually – far exceeding the $250 annual fee. However, if your business cannot regularly pay early or has lower monthly expenses, other cards with traditional rewards programs might provide better value.
How widely accepted is American Express?
American Express acceptance has improved significantly in recent years. According to the Nilson Report, American Express is now accepted at over 99% of locations in the United States that accept credit cards. International acceptance has also expanded, though it may still lag behind Visa and Mastercard in some regions. Before applying, consider whether your key vendors and suppliers accept American Express to ensure the card will be useful for your business expenses.
How does The Plum Card® affect my business credit score?
When used responsibly, The Plum Card® can help build your business credit score. American Express reports your payment history to business credit bureaus, so making timely payments can strengthen your business credit profile. Additionally, the card's no preset spending limit feature doesn't calculate utilization ratios like traditional credit cards, which can be advantageous for businesses that need to make large purchases without negatively impacting their credit scores.
Supercharge Your Credit Cards
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
