American Express Plum Card Review 2016

AmEx Plum CardAmerican Express offers a variety of business credit cards, but the Plum card is a distinctive member of the species. In fact, there is no other card on the planet like the The Plum Card® from American Express OPEN. What’s so unique about this business card?

Trade terms on everything you buy…

As you probably know if you are in a trade business, “trade terms” between a buyer and a supplier typically go like this… the buyer may have 60 days from date of invoice to pay in full – but to incentive for early payment – the supplier may offer a discount if the invoice is paid within 10 days. Well, that is exactly what the Plum Card offers!

  • If you pay your balance in full within 10 days, you will receive a 1.5 percent discount (which will appear as a credit on the following billing statement). So, this is just like a cash back rewards credit card but is designed specifically for those small business owners who could profit from the receiving credit card-related trade terms from their suppliers. As normal, pay early and get 1.5% back with no earnings cap. And, for a limited time until 8/24/2015, you can get an additional $200 statement credit for every $10,000 you spend on the Card, up to $600 back. That can be an extra 2%.

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  • You can pay as little as 10% of the outstanding balance by the Payment Due Date and then take up to 60 days to pay off the rest, without any interest! This feature shows how American Express understands the cash flow dynamics of small business owners and provides the necessary breathing room needed between when costs are incurred and payment is normally received in the typical business environment.

Does your business consistently get paid on time?

How many times have you had a customer pay you late, and in turn, that made it difficult for you to pay your own bills on time? This typically happens to all small business owners to some degree and the Plum Card can come to the rescue with its flexible terms.

Specifically, with the payment flexibility offered on the American Express Plum card you now have the option of paying off your bill over a period of up to 60 days and completely avoiding interest. That’s a world of difference compared to the typical 21- to 25-day grace period found on many charge and credit cards.

How much will you save?

With credit cards, if you don’t pay 100 percent of the balance by the due date, you are hit with interest going back all the way to the dates of those purchases… even if you pay off the remaining amount just a couple days after the grace period. On the other hand, the Plum Card benefit of taking up to 60 days can save you a small fortune in interest.

And for when you do pay your balance in full within 10 days of the billing statement, you will be getting 1.5 percent back. If you spend an average of $15,000 per month on your Plum Card, over the course of one year that 1.5 percent adds up to be $2,700 in savings!

Other useful benefits…

This American Express Business card has an array benefits that American Express cardmembers have come to expect and appreciate. Below are some of the most notable benefits…

For buying – On eligible purchases made with the card, American Express offers Extended Warranty, Purchase Protection, Fraud Protection Guarantee, dedicated dispute resolution, automatic discounts with select business retailers and service providers who are OPEN Savings Partners (like FedEx Office, FedEx Ground, Hertz, and more).

For traveling – Baggage Insurance Plan, Travel Accident Insurance, Global Assist Hotline, Car Rental Loss and Damage Insurance, Roadside Assistance Premium, and others. For each benefit, please consult American Express for the terms, rules, and restrictions.

For account management – dedicated 24/7 customer service, emergency card replacement (they have sent me sent me one next-day before), add an authorized account manager, account alerts and payment reminds, identity theft assistance, detailed online statements and year-end summary, and ReceiptMatch (which is a new benefit you may have seen on their commercials lately).

Verdict?

Now that you’ve read this review, I’m sure you understand why the Plum Card is a popular choice among sophisticated small business owners. But if you are still not sure if this card is a fit for your small business you can still take the plunge without getting wet… since you have a $0 introductory annual fee for the first year ($250 after), you can try out the AmEx Plum Card for yourself and do your own personal review during that time.

The only potential drawback about the card is the annual fee, which may only be justified over time if your small business makes substantial yearly charges.

This review was written or last updated August 16, 2016