【Updated 10/14】This card has added a welcome bonus: during the first three months, for every $10,000 you spend, you can earn an extra $200 cash back, up to three times for a total of $600. Combined with the built-in 1.5% payment discount, that works out to an effective 3.5% return. If your spending is fairly high, this card can still be worth considering. The annual fee is waived for the first year, so there’s less to worry about.

The Plum Card from American Express OPEN

[Note] If this is your first time applying for a business credit card, please read “Introduction to Business Credit Cards” carefully first.

Application Link:

Key Features

  • Welcome bonus: $600
  • Rewards: None
  • No FTF
  • Annual fee: $250 ($0 first year)

Highlights

  • 1.5% payment discount: If you pay at least the minimum by the due date, then any balance you pay within 10 days after statement closing is eligible for a 1.5% discount. For example, if your balance is $100, you only need to pay $98.5.
  • 60-day payment period: As long as you pay the minimum, the previous statement balance does not need to be paid by the due date. Instead, you can wait until 60 days later (the next due date) to pay it off, without incurring interest. That’s effectively a free 2-month interest-free loan.

AMEX Card Benefits

  • [Business Card Exclusive] AMEX Open Savings: With an AMEX business credit card, purchases at participating merchants can earn an extra 2x MR or a 5% discount. Participating merchants include FedEx Express and FedEx Ground, Hertz®, HP.com, and more. See: Open Savings introduction
  • AMEX Offer: Amazon spend 20 get 20, Walmart 15-5, pay your phone bill 75-10. Generous AMEX often gives cardholders excellent offers, letting you earn cash rewards while you spend. See also: Recent Great AMEX Offers, Past Great AMEX Offers Summary, AMEX Offer Guide.
  • [Business Card Exclusive] More and better AMEX Offers: As a business card, it may receive more valuable offers, such as 20% off at Staples, Office Depot Offers, Sam's Club, and more (including buying gift cards). These targeted offers generally are not sent to personal cards.
  • Small Business Day: Every year, AMEX cards can participate in Small Business Day promotions, with extra rewards for spending at eligible merchants. See: Introduction to the Small Business Day promotion
  • High credit limits: AMEX is very generous with customers and often gives much higher credit limits than other banks.
  • 3x credit line increase: Starting on day 61 of card membership, you may be able to increase your credit limit to three times the original amount through the AMEX website.
  • Free ShopRunner membership: Enjoy free 2-day shipping at many online stores. For details, see: official link
  • Extended warranty: Items purchased in full with an AMEX card get the manufacturer’s warranty extended by one year automatically.
  • Free credit report: Cardholders can check their EX credit score for free. See: comparison of free credit scores

Cons

  • No rewards and no welcome bonus

My Take

This is a fairly unique card designed specifically for business use. You can take advantage of its 60-day payment period to maximize cash flow. For example, you could buy inventory with the card, sell it, and then pay the balance off afterward—effectively using AMEX’s 60-day interest-free float to help run your business. Even better, if you have extra cash and pay early, you can also get the 1.5% payment discount. However, the $250 annual fee is still there, so if your monthly spending is not very high, it’s probably not a great deal.

How to Apply

[Note] If this is your first time applying for a business credit card, please read “Introduction to Business Credit Cards” carefully first.

  • AMEX official application status check link
  • For the same AMEX credit card, the public welcome bonus is generally available only once (once-per-lifetime restriction)
  • You can call the reconsideration line (800-528-4800, 877-399-3083, 866-314-0237) to speed up credit card approval or request a review of a denied application.
  • AMEX limits you to 4 credit cards and 10 charge cards total.
  • You can apply for a total of two AMEX credit cards every 90 days, excluding charge cards.
  • After you submit your application, a pop-up may appear telling you that you are not eligible for the welcome bonus. In that case, it is usually best not to continue with the application (detailed analysis)
  • More about applying for AMEX credit cards

Application Link