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The Plum Card® from American Express

The Plum Card® from American Express

An excellent business credit card.
Editor's Rating: 4.5/5.0
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Editor's Rating

{"onCurrent":true,"message":"Our team rates credit cards objectively based on independent research, the features the credit card offers users, and how it compares with other available cards in its category. The ratings are the opinion of our editors, and are not influenced by any outside factors, including any compensation the site may receive from certain advertisers."}

4.5/5.0

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author's alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication. This site may be compensated through a credit card partnership.

The Plum Card® from American Express costs an annual fee of $250 dollars, waived for the first year, that offers small business owners a discount on their monthly bills (See Rates & Fees).

The Plum Card® from American Express Pros

  • 1.5% discount whenever you pay your statement credit early
  • You can defer paying some of your monthly bill with no interest charged
  • No annual fee for additional cards

The Plum Card® from American Express Cons

  • $250 annual fee is quite expensive even if it is waived for the first year

The Plum Card® from American Express Features Benefits And Rewards

Let's look at the main benefits of The Plum Card® from American Express.

How does The Plum Card® from American Express work?

With The Plum Card® from American Express you receive a 1.5% discount on your monthly bill whenever you take advantage of the Early Pay Discount. To qualify for Early pay, you have to pay off the balance of the card within 10 days of the billing cycle closing. The 1.5% discount will automatically apply as a statement credit towards your bill for the next month. By taking advantage of this feature you effectively receive 1.5% cash back. While the discount is not technically a spending reward, we think its appropriate to consider at such when comparing it to other cards.

Payment Deferral

The second main feature of the card is the ability to pay some charges over a longer period of time. Normally as a charge card your business would be required to pay off your entire balance at the end of each billing cylce. With The Plum Card® from American Express if you pay at least 10% of the new charges on the card in the current month, and pay off any deferral from the previous month you can wait to pay off the remainder for another billing cycle with no interest. This feature makes The Plum Card® from American Express useful if your business experience month to month cash flow fluctuations that might make paying all your expenses difficult.

Lets look at how this works with a 3 month example. In this example we assume you spend 3,000 per month on The Plum Card® from American Express.

Month 1: The 3,000 in new charges get added to your statement credit. By paying $300 (3,000 * 10%), you can defer $2,700 into the next month.

Month 2: In the second month 3,000 in new charges is added on top of the 2,700 deferral for a total balance of 5,700. To be eligible for the deferral you have to pay off the complete amount of the defrral $2,700 and the 10% of the new 3,000 in charges = $300. The total payment for the month is $3,000 with $2,700 deferred into the next month.

Month 3: Month 3 looks similar to the second month. With the same $2,700 deferral and $3,000 in charges being added.

The deferral benefit effectively acts as a 30 day no interest loan on a portion of your balance. With most business credit cards having interest rates higher than 12% annually, this feature can save approximately 1% or more that you would pay towards interest charges on your balance.

The Plum Card® from American Express Charge Card Benefits

On American Express' Secure Website

The Plum Card® from American Express

On American Express' Secure Website
  • Paying early pays off: Get a 1.5% discount when you pay early, with no cap on what you can earn back.
  • Take up to 60 days to pay with no interest, if you pay your minimum due.
  • Use the power of the Plum Card to buy big for your business.
  • Unlock new opportunities with a spending limit that can grow with your business.
  • Additional Employee Cards at no annual fee — and an early pay discount on employee spending.
  • No Foreign Transaction Fees.
  • Introductory annual fee of $0 for the first year, then $250
  • Terms & Restrictions Apply. See Rates & Fees
  • Paying early pays off: Get a 1.5% discount when you pay early, with no cap on what you can earn back.
  • Take up to 60 days to pay with no interest, if you pay your minimum due.
  • Use the power of the Plum Card to buy big for your business.
  • Unlock new opportunities with a spending limit that can grow with your business.
  • Additional Employee Cards at no annual fee — and an early pay discount on employee spending.
  • No Foreign Transaction Fees.
  • Introductory annual fee of $0 for the first year, then $250
  • Terms & Restrictions Apply. See Rates & Fees
Annual Fee
$0 introductory annual fee your first year, then $250
Regular APR
N/A
Credit Needed
{"onCurrent":true,"message":"There are various types of credit scores. Each creditor uses a variety of different types of credit scores to make lending decisions."}
Excellent Credit
Editor's Rating
{"onCurrent":true,"message":"Our team rates credit cards objectively based on independent research, the features the credit card offers users, and how it compares with other available cards in its category. The ratings are the opinion of our editors, and are not influenced by any outside factors, including any compensation the site may receive from certain advertisers."}

Review: Is The Plum Card® from American Express Worth It?

The 1.5% discount alone, does not make The Plum Card® from American Express a good choice for small business owners. The discount is effectively a cash back / statement credit award at a rewards rate of 1.5%. With the high annual fee of $250 a year, you'd have to spend over $16,000 annually on the card just to break even. Judged purely on rewards, a number of other small business cards offer greater rewards rates, with substantially less annual costs. A card like the Capital One® Spark® Cash for Business offers 2% cash back on all purchases and will cost you only $95 a year.

The rewards for The Plum Card® from American Express don't stack up favorably on their own when you compare it to these other options. The annual fee simply eats too much of your savings to make it worthwhile. If you're looking for a 1.5% rewards rate, the Capital One® Spark® Cash Select for Business is a business card with 1.5% cash back and no annual fee whatsoever. Clearly the superior choice in every way when it comes to savings.

Where the card can come out ahead however is for businesses where short term cash flow issues force them to carry short term balances. By taking advantage of the deferral you can shift keep a balance on the credit card constantly without paying interest until your company is better able to pay it off. This works if the company has a spike in expenses or loss in revenues for a period of a month.

The math suggests that The Plum Card® from American Express is most suited to businesses that can take advantage of it Pay It Later feature. Even then we would only consider the card if you're expecting to spend at least 16,000 dollars annually.

Applying For The Plum Card® from American Express

If your business does not have an existing credit history, applying for The Plum Card® from American Express may require you to use a personal guarantee. American Express may use your personal credit history in determining whether or not to issue the card to your small business. For businesses with an established credit history this might not be an issue.

What credit score do I need for The Plum Card® from American Express?

The Plum Card® from American Express is marketed towards businesses with an excellent credit profile. If you're a new business and need to use a personal guarantee the score would be greater than 720.

For rates and fees of the The Plum Card® from American Express, please click here.

Comments and Questions

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.

Info about the following cards: American Express® Gold Card, Delta Reserve® Credit Card from American Express, Hilton Honors Surpass® Credit Card, American Express® Blue Sky, American Express® Green Card, The Amex EveryDay® Preferred Credit Card from American Express, The Plenti® Credit Card from Amex, Blue from American Express®, Platinum Card® from American Express Exclusively for Mercedes-Benz, Bluebird, Centurion® Card from American Express, Hilton Honors American Express Aspire Card, and Starwood Preferred Guest® American Express Luxury Card has been collected independently by ValuePenguin. The issuer did not provide the details, nor is it responsible for their accuracy.

Advertiser Disclosure: The products that appear on this site may be from companies from which ValuePenguin receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). ValuePenguin does not include all financial institutions or all products offered available in the marketplace.

How We Calculate Rewards: ValuePenguin calculates the value of rewards by estimating the dollar value of any points, miles or bonuses earned using the card less any associated annual fees. These estimates here are ValuePenguin's alone, not those of the card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer.

Example of how we calculate the rewards rates: When redeemed for travel through Ultimate Rewards, Chase Sapphire Preferred points are worth $0.0125 each. The card awards 2 points on travel and dining and 1 point on everything else. Therefore, we say the card has a 2.5% rewards rate on dining and travel (2 x $0.0125) and a 1.25% rewards rate on everything else (1 x $0.0125).

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