American Express National Bank
- 1.50% cash back rewards on payments made within the first 10 days after the statement closing date
- No limit on cash back rewards earned for early pay
- 60 days to pay any balance, interest-free
- High annual fee
- Cash back rewards only earned on purchase balances paid within 10 days of the statement closing date
American Express Plum Card Overview
The American Express® Plum Card is a business charge card that allows card members to earn cash back rewards for paying balances early. Card members can also take advantage of 60-day interest-free payment terms, although cash back rewards are not earned for these purchases.
Although the Plum Card comes with a hefty annual fee, a business that charges more than $17,000 annually and pays off balances within the first 10 days of statement closings can earn enough to cover the fee.
The best Plum Card features are the flexibility of rewards vs. interest-free payments and the fact that it has no preset spending limit. The Plum Card also offers a few benefits that small businesses may find helpful, such as employee cards at no additional annual fee and a variety of expense management tools for tracking business spending.
GOBankingRates gave the American Express® Plum Card 4.4 out of 5 stars based on the following key features.
The American Express® Plum Card has a steep $250 annual fee. American Express charges the greater of $39 or 1.50% of the outstanding statement balance for late payments. Payments not made for two billing cycles will incur a late fee of $39 or 2.99% of the past due statement balance, whichever is greater.
The Plum Card does not have foreign transaction fees. Because the Plum Card does not allow for cash advances or balance transfers, fees usually associated with these services do not apply.
As a charge card, the American Express Plum Card does not have an APR. However, it charges potentially hefty late fees on past due unpaid balances.
American Express® Plum card members receive the following benefits:
- No preset spending limit — American Express determines your spending power based on your purchasing history, payments and other factors
- Unlimited 1.50% cash back rewards on the portion of the outstanding balance paid within 10 days of the statement closing date
- Up to 60 days to pay the entire statement balance without interest or fees when you pay the Minimum Due by the Payment Due date
- Employee cards at no additional annual fee
- Car rental loss and damage insurance when using the Plum Card to reserve and pay for the car rental
- Purchase Protection and extended warranties on covered purchases
Card members earn unlimited 1.50% cash back rewards on the portion of any balance paid within 10 days of the statement closing date. There is no cash back earning limit and no rewards purchase category limitations. Earned cash back rewards are applied to the following statement.
Payments made after the 10-day statement period do not earn rewards.
How the American Express Plum Card Stands Out
The American Express Plum Card’s lack of APR and preset spending limit makes it a unique choice for a business card.
Add in the ability to earn cash back rewards or get 60 days to pay off balances interest-free, and the Plum Card is worth considering for business owners in the market for a new card.
Comparable American Express Plum Card Options
Business owners needing a card should also consider other credit card options. The following card options offer cash back rewards and do not have an annual fee.
Chase Ink Business Cash Card
The Chase Ink Business Cash card is a good option for those seeking a business rewards credit card.
The first $25,000 in combined purchases each year can earn cardholders up to 5% cash back rewards. Cardholders earn 5% cash back rewards at office supply stores and on phone, internet and cable services. They also receive 2% cash back rewards on gas station and restaurant purchases.
Cardholders earn 1% cash back rewards on all other purchases, including all transactions beyond the $25,000 purchase limit.
Cash back rewards can be redeemed through Chase Ultimate Rewards® for:
The Chase Ink Business Cash card has no annual fee. It comes with a 0% introductory interest rate for the first 12 months and a $750 cashback bonus after spending a minimum of $7,500 on purchases in the first three months of account opening. After the promotional period ends, it has a APR.
Bank of America Business Advantage Customize Cash Rewards Credit Card
Bank of America’s Business Advantage Customize Cash Rewards® card allows business owners to earn up to 3% cash back rewards on the first $50,000 in combined qualifying purchases each calendar year. Cash back rewards are earned at 3% in a category of choice. Categories include:
- Gas station
- Travel and office supply purchases
- TV or telecom, wireless, computer and business consulting services
Cardholders also earn 2% cash back on dining and 1% cash back rewards on all other purchases, including those beyond the purchase limit. Those with a Bank of America business checking account may qualify for Preferred Rewards for Business and earn up to 75% more in cash back rewards on purchases.
Rewards can be redeemed as cash back deposited into a Bank of America checking or savings account, as a credit applied to their card statement or issued as a check.
The Bank of America Business Advantage® card has an introductory 0% APR on purchases for the first nine billing cycles. New cardholders can also get a $300 statement credit after making at least $3,000 in purchases during the first 90 days after account opening. Once the introductory period ends, a variable 13.74% to 23.74% APR applies.
The Bank of America card has no annual fee.
How To Apply for the American Express Plum Card
Those interested in the Plum Card can apply on the American Express website by going to the card and selecting “Apply Now.” Applicants must provide both business and personal information on the application, including:
- Number of years in business
- Number of employees
- Annual business revenue
- Estimated monthly spend on the card
- Federal tax ID for the business
- Social Security number for the business owner
- Applicant’s annual income
Who the American Express Plum Card Is Best For
The American Express® Plum Card is best for business owners who will spend enough to justify the high annual fee and have the cash flow to pay off the balance immediately, or at least within 60 days of the statement end date.
Although the Plum Card comes with a hefty annual fee, a business that charges more than $17,000 annually and pays off balances within the first 10 days of statement closings will earn enough to cover the fee.
The American Express® Plum Card has simple terms — no APR, a $250 annual fee, 1.50% cash back rewards on any balance amount paid within 10 days of the statement closing date and the ability to carry a balance for 60 days interest-free when you pay the Minimum Due by the Payment Due date.
With a steep annual fee and the limited ability to earn rewards, the American Express® Plum Card is not the best choice for some small business owners. Those who won’t be spending enough or have the cash flow necessary to take advantage of the Plum Card’s cash back rewards might benefit more from another type of business rewards card without an annual fee.
Business owners should thoroughly assess spending needs and cash flow before choosing a business credit card.
FAQHere are some answers to common questions about the American Express® Plum Card.
- Does the American Express® Plum Card have a limit?
- The American Express® Plum Card does not have a preset credit limit. A card member's spending power adjusts with use, payment history, credit record and other factors.
- What is an American Express® Plum Card?
- The American Express® Plum Card is a business charge card without an APR or a spending limit.
- Is it hard to get the Plum Card?
- An applicant must have good to excellent credit to qualify for the American Express® Plum Card. American Express will also consider other factors before approving a new card member, including the applicant's business revenue and personal annual income.
- Is the Plum Card a charge card?
- The American Express® Plum Card is a charge card rather than a credit card. The Plum Card has no APR. However, balances not paid in full within 60 days of the statement close date will incur hefty fees.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of July 25, 2022.
Editorial Note: This content is not provided by Chase or Bank of America. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Chase or Bank of America.
All information about The Plum Card has been collected independently by GOBankingRates.com. The Plum Card is not available through GOBankingRates.com.
Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by American Express. American Express credit card products are not available through GOBankingRates.com.
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