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The Plum Card from American Express review

Written by Author, Award-Winning Writer Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing Oct. 28, 2022 Oct. 28, 2022

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Snapshot

4.2 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. star icon star icon star icon star icon star icon star icon star icon star icon star icon star icon Bottom line In general, this card makes sense for small business owners who need some flexibility on their monthly payments. However, unless you plan to pay your bills early enough to earn a discount on your credit card balance, there aren’t many extras or other card benefits that justify the $250 annual fee. on American Express's secure site

The Plum Card® from American Express

Rewards rate Get a 1.5% discount when you pay early, with no cap on what you can earn back. Annual fee Intro offer Intro offer is not available to this American Express credit card Regular APR Recommended Credit Score A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

The Plum Card® from American Express Card Overview

The Plum Card® from American Express is a business charge card and not a traditional , meaning you cannot carry a long-term balance on it. Interestingly, you do have the option to pay your balance in full within 60 days without any interest provided you pay the minimum payment due by your due date. Instead of rewards, you can secure an unlimited 1.5 percent discount on the portion of your balance that you pay within 10 days of your account statement closing date. The Plum Card doesn't come with many benefits, but the early payment discount could be lucrative for businesses who spend a lot on plastic each month and don't want to deal with earning rewards.

What are the pros and cons

Pros

There is a 1.5 percent discount on your bill when you pay within 10 days of your statement closing date Cardholders can choose 60 days to pay instead with no interest when you pay minimum amounts due Cardholders can qualify for extended warranties, purchase protection, return protection and other benefits It has no foreign transaction fees, making it a great option for those who need to travel internationally for business

Cons

The $250 annual fee is pretty steep, especially considering it’s lack of cardholder benefits There is no welcome bonus, which is a disadvantage when compared to other small business credit cards It doesn’t have a traditional rewards structure, so those looking to earn points, miles or cash back may want to look elsewhere

A deeper look into the current card offer

Quick highlights

Rewards rate: 1.5% early pay discount on your statement on the amount paid within 10 days of your statement closing date and no cap on what you can earn back. Just pay the minimum due by the payment due date. Welcome Offer: None Annual fee: $250 Purchase intro APR: N/A Balance transfer intro APR: N/A Regular APR: N/A

Current welcome offer

The Plum Card doesn't offer business owners any kind of initial bonus, which makes it lackluster when you compare it to the best credit cards, some of which let you earn an initial bonus worth up to $1,000 or more. If you're interested in earning a welcome offer and want an in particular, you should check out cards like or the .

Rewards rate

The Plum Card doesn't offer any "rewards" per se, but you do earn a discount on your credit card bill when you pay it in full within a specified timeline.

How you earn

Once you sign up for the Plum Card, you'll get a 1.5 percent discount on your credit card bill when you pay your credit card statement off within 10 days of your statement closing date. This means that, if you charge $10,000 in business expenses to your charge card within any given month, you can pay your bill in its entirety within 10 days of your account statement closing date and only owe $9,850 (instead of $10,000). Keep in mind that you're not earning rewards you can spend later on. This card only offers the 1.5 percent back as a discount on your bill, so you won't accumulate a rewards balance.

How much are points worth

The discount you receive when you pay your bill early is 1.5 percent, so you don't earn "points" with this card.

Other cardholder benefits

The Plum Card is fairly basic, so it doesn't come with a ton of cardmember perks. With that being said, there are some very basic benefits you should know and understand.

60 days to pay with no interest

While you cannot carry long-term debt on this card, as it's a charge card and not a credit card, the Plum Card does give you 60 days without interest to pay your balance provided you complete any minimum payments due during that time. This benefit can buy you some time if you want to pay for a large purchase over a few months instead of right away. Just remember if you take 60 days to pay your balance, you won't earn the 1.5 percent discount on your bill.

No foreign transaction fees

You won't pay any foreign transaction fees when you use this charge card to make purchases outside of the United States.

Global Assist hotline

When you travel more than 100 miles from home, you can use this hotline for assistance with medical, legal and passport referrals, emergency cash wires and other types of emergency assistance.

Purchase protection

Receive purchase protection against damage and theft for covered items up to 90 days from the purchase date. This protection is worth up to $1,000 per covered purchase and up to $50,000 per eligible card.

Extended warranties

Get up to one additional year of extended warranty protection on eligible items. Coverage is good for up to $10,000 per covered purchase and up to $50,000 per eligible card.

Car rental loss and damage insurance

Cardmembers and their authorized drivers can qualify for up to $50,000 in coverage for damage or theft of a rental vehicle when they pay for a rental in its entirety with an eligible card.

Return protection

This protection can help you return eligible purchases to American Express if the seller or retailer won't take them back when you try to make a return within 90 days. This coverage is good for up to $300 per item with a maximum benefit of $1,000 per calendar year per account.

Rates and fees

Since the Plum Card is a charge card and not a credit card, it doesn't come with an interest rate at all. You'll be asked to pay $250 per year to keep your card. A $39 late payment fee can apply, or you can be asked to pay 1.5 percent of any past due amount, whichever is greater. If you do not pay your bill for two billing periods in a row, however, the fee grows to $39 or 2.99 percent of the past due amount. A returned payment fee of $39 can also apply.

How the Plum Card from American Express compares to other business cards

Before you or business charge card, you should compare a few different options across issuers to see how they stack up. The following chart shows how the Plum Card compares to two other credit cards for business owners, including one with :

The Plum Card® from American Express

star icon star icon star icon star icon star icon star icon star icon star icon star icon star icon Bankrate Score Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. on American Express's secure site Annual fee Intro offer Intro offer is not available to this American Express credit card Rewards rate Get a 1.5% discount when you pay early, with no cap on what you can earn back. Recommended credit A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Ink Business Unlimited® Credit Card

on Chase's secure site Annual fee Intro offer Best Offer Ever: Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening Rewards rate Earn unlimited 1.5% cash back on every purchase made for your business Recommended credit A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product.

Capital One Spark Cash Plus

on Capital One's secure site Annual fee Intro offer Earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first 3 months, and $500 once you spend $50,000 in the first 6 months of account opening Rewards rate Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel Earn unlimited 2% cash back on every purchase, everywhere—with no limits or category restrictions Recommended credit A FICO score/credit score is used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any financial product. When you compare the Plum Card to a few other business credit cards, it's easy to see where it falls short. First, the Plum Card is a , so you don't have the option to carry a balance beyond 60 days, even if you really need to. Not only that, but the Plum Card doesn't offer any sort of welcome bonus and comes with a pricey $250 annual fee.

Plum Card from American Express vs Chase Ink Business Unlimited Card

The offers 1.5 percent cash back (rather than a percent discount on your bill), but you can redeem your rewards for statement credits that work the same as a discount. You can also cash in your rewards for gift cards, merchandise, travel through Chase and more. You even get a $900 bonus when you spend $6,000 on your card within three months of account opening. There's no annual fee either, so it's really a no-brainer.

Plum Card from American Express vs Capital One Spark Cash Plus

It's hard to argue against the charge card, which offers one of the best unlimited cash back rates among business credit cards and a flexible spending limit similar to the Amex Plum. You'll earn a flat 2 percent back on all your spending and can redeem your rewards for statement credits and more at any amount, or you can set your rewards to automatically redeem at a certain balance threshold or yearly date for one of the easiest rewards experiences possible. You'll also qualify for a great cash back bonus - earn up to a $1,000 cash bonus; $500 once you spend $5,000 in the first three months, and $500 once you spend $50,000 in the first six months of account opening. Further, you'll only pay a $150 annual fee, whereas the Plum Card charges $250.

Best cards to pair the Plum Card from American Express with

If you decide to sign up for the Plum Card, you may want to pair it with a personal credit card that lets you earn rewards on your regular spending and bills. That way, you could earn a 1.5 percent discount on business purchases you pay off right away, but also earn some rewards for yourself. Consider pairing this card with a personal like the , which offers 2 percent back on all your spending - 1 percent when you make a purchase and another 1 percent when you pay it off. The Citi Double Cash also comes with no annual fee.

Bankrate s Take Is the Plum Card from American Express worth it

At the end of the day, there are much better business credit cards than the Plum Card. The fact that it's a charge card means you don't have the option to carry a balance for more than 60 days, and the $250 annual fee is high for a card that only gives you a 1.5 percent discount. With that being said, you could still consider this card if you don't want to earn rewards and really just want to score a discount on all your purchases. Just remember that you'll need to spend at least $16,675 on your card each year just to earn $250 in early payment discounts to make up for the $250 annual fee. If you don't spend that much on your business each year, then the discount you're earning won't be worth it. For rates and fees of the Plum Card from American Express, please click .

Frequently Asked Questions

How does the Plum Card from American Express work

The portion of the balance you pay within 10 days of the statement closing date earns 1.5 percent cash back. Alternatively, you may pay off your statement balance for up to 60 days without accruing interest charges, but you will not receive a discount on your credit card bill.

What credit score do you need to qualify for the Plum Card from American Express

To qualify for The Plum Card from American Express, you will need good to excellent credit (690 or higher).

Does the Plum Card from American Express have a credit limit

The Plum Card has no predetermined spending limit, so your purchase power is based on how you use the card. However, cardholders should note that even though there is no set spending limit, that does not mean unlimited spending.

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Written by Holly D. Johnson Author, Award-Winning Writer Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more.

Advertiser Disclosure

Bankrate.com is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which Bankrate.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within listing categories. Other factors, such as our own proprietary website rules and the likelihood of applicants' credit approval also impact how and where products appear on this site. Bankrate.com does not include the entire universe of available financial or credit offers.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. * See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer. Editorial Disclosure: Opinions expressed here are the author's alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.