The Plum Card® from American Express OPEN is a rewards card from American Express, a GET.com advertiser, for established business owners. Plum Card is a charge card, yet allows you to pay your bills in a more flexible way. Each month, you have the option to get a 1.5% Early Pay Discount and/or defer your payment without interest (for 60 days). As an AmEx card, it also comes with many cardholder benefits.
Below I'll explain to you how the The Plum Card® from American Express OPEN works and tell you how we rate this business credit card so that you will have a better idea if this card is right for your business needs.
Things We Like About The Plum Card® from American Express OPEN
Introductory annual fee of $0 for the first year, then $250 annually - You pay this membership fee after the introductory period.
Get a 1.5% discount on the portion of your eligible purchase balance that you pay within 10 days of your statement closing date. The catch is that you must pay at least your Minimum Payment Due. This 1.5% discount will be reflected as a credit on your billing statement the following month! How's that for being rewarded for paying your bills on time? So if you spend, for example, $5,000 monthly on eligible business purchases on your card and you pay it off in full within 10 days of your statement closing date, you will have an annual discount of $900 - not a small amount of savings! The more of your balance that you pay, the more you will save.
Take up to 60 days to pay with no interest. If you choose to pay at least 10% of the current month's spending and the entire amount of any previously deferred payment by your "Please Pay By Date" on your statement, then you are allowed to defer the other 90% till the following month. That means you can take up to 60 days to pay your balance in full. This feature allows for more flexibility when making payments, ensuring that you won't be charged with any penalties or interest when your cash flow is tight.
Choose when your monthly billing cycle ends. This will allow you to choose your preferred billing date, which could be at the beginning, middle or end of the month, to suit your business needs.
No pre-set spending limit. As a charge card, it doesn't have a pre-set spending limit. Your purchasing power will adjust with your use of the card, your payment history, credit record and other factors.
Travel accident insurance and premium roadside assistance. The roadside assistance offers you up to 4 service calls yearly which can help you if you have trouble or problems on the road. Coverage is applicable to the entire U.S., Canada, the Virgin Islands and Puerto Rico. Certain vehicles aren't covered, such as motorcycles, trucks and rental vehicles. Other important exclusions apply.
Car Rental Loss and Damage Insurance to ensure that your eligible rental car is covered in the case that it gets damaged or stolen when you pay with your Plum Card.
Purchase Protection and Extended Warranty on eligible purchases made with your card. Purchase Protection can protect eligible purchases made with your card against accidental damage and theft for up to 90 days from the date of purchase. The Extended Warranty extends the term of the original manufacturer's warranty up to one more year on eligible purchases with warranties of five years or less that are eligible in the U.S.
No Foreign Transaction Fees. This is a great benefit since you won't have to pay any foreign transaction fees when you make purchases in another currency using your card.
No annual fee for each additional employee card. This is a great benefit if you choose to get Plum cards for your employees.
Baggage Insurance Plan when you pay for your flights with your card.
Year-end summary. At the end of each year, to help you better organize your accounting, taxes and budgeting for the next year, you will receive an itemized report online or by mail if you wish so, of all your spending that current year, organized by month and spending category.
Our Least Favorite Things About The Plum Card® from American Express OPEN
$250 annual fee after the first year. You enjoy an introductory annual fee of $0 for the first year, thus allowing you to save $250. After that, you'll have to pay an annual fee of $250 - for the flexibility to defer payments or be rewarded for paying in full. The 1.5% discount you get for paying (within 10 days of the statement closing date) on the first $16,667 of eligible purchases you spend on your card will equal $250, which is your annual fee (1.5% of $16,667 = $250). A 1.5% discount on anything more than $16,667 will then be your real savings (assuming you pay that portion of the balance within 10 days of the statement closing date). So if you have an established business with a lot of business expenses, it makes sense to have this card in my opinion.
How Other Cards Compare With The Plum Card® from American Express OPENU.S. Bank Business Edge™ Platinum does not reward you for making your card repayments early, but it comes with other useful benefits. Firstly, this is a credit card, which means you can carry a balance if you need to, while The Plum Card® from American Express OPEN is a charge card. This card from U.S. bank is one of the few business credit cards from a major bank that offers an introductory period for balance transfers (0% intro APR on purchases and balance transfers for 12 billing cycles, followed by a regular 10.49% - 18.49% variable APR). You get free employee cards (The Plum Card® from American Express OPEN also lets you add employee cards at no additional charge). The main difference is that this card has no annual fee, while you pay an introductory annual fee of $0 for the first year, then $250 to use The Plum Card® from American Express OPEN. You get Zero fraud liability, a benefit that protects you against unauthorized transactions. Many other business credit cards don't come with fraud liability protection. If you want a business credit with good basic features and no annual fee, this card could work well for you. If you want to transfer a balance, this is one of your best options. But if your business has a big turnover and you can afford to pay off your balance early and in full every month, then the savings you get could well make the annual fee you pay for The Plum Card® from American Express OPEN worth it.
The Plum Card® from American Express OPEN is one of the only business payment cards which rewards you with discounts when you pay early, and also gives you more repayment flexibility than other charge cards.
The The Plum Card® from American Express OPEN is a good choice of card for established business owners who want an American Express charge card that gives you flexibility when it comes to making your monthly payments. Each month, you can choose to get a 1.5% Early Pay Discount, and also to defer your payments interest-free. If your business has a positive cash flow and has a strong credit history, you could consider applying for this card. As mentioned earlier, the $250 annual fee (after the first year) could be covered with the 1.5% discount if you have a lot of business expenses on the card each month (that you pay off a big portion of the balance within 10 days of the statement closing date). Terms and restrictions apply.
Considering all the American Express benefits this The Plum Card® from American Express OPEN has, it is in my opinion a good choice of card for established business owners who want an American Express card with flexibility and a discount option. Apply online and you will get a response within 60 seconds.
Katrina Gutierrez is a writer at GET.com. Email: firstname.lastname@example.org.Editorial Disclosure: Any personal views and opinions expressed by the author in this article are the author's own and do not necessarily reflect the viewpoint of GET.com. The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author's alone, not those of the companies mentioned, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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