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Last updated on November 4th, 2021
The Plum Card® from American Express
- Receive 1.5% discount when you pay your bill within 10 days of your statement closing date
- Up to 60 days to pay with no interest
- Choose whether to receive your bill at the beginning, middle, or end of the month
- Annual fee waived the first year
- No preset spending limit
- Employee Plum Cards for no additional fee
- Annual Fee: $250
- Late Payment Penalty Fee: $39 or 1.5% of the past due amount, whichever is greater
- Return Payment Penalty Fee: $39
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At a Glance
Business owners searching for a business credit card with flexible payment options will find the Plum Card® from American Express as useful as it is unique. Offering cash back, flexible spending capacity and a 60-day grace period to pay off monthly balances, the Amex Plum Card is a credit option that’s perfect for accommodating new business owners, entrepreneurs, and freelancers with irregular income.
Ideal for Those Who:
- Own a business
- Want the option to earn cash back
- Have irregular cash flows and don’t want to be penalized for it
- Don’t want to pay an annual fee for employee cards
The Plum Card from American Express® Review
The Plum Card® from American Express was designed to support the unpredictable cash flow of startups, small businesses, and the self-employed. With its flexible and thoughtful features, the Plum Card is a truly unique business card that helps budding businesses thrive. Although the annual fee of $250 might seem high to those with irregular incomes, it is conveniently waived during the first year and gives smaller businesses a chance to stabilize.
The most important distinction between this and other cards is that the Plum Card is akin to a business charge card, which means that you must pay off your entire balance each month to avoid a penalty fee. But don’t let that intimidate you; the Plum Card’s unique payment options allow the card to operate similarly to a traditional credit card, while its status as a pay-over-time card can protect your personal credit score against large purchases that might otherwise through your credit card utilization percentage out of whack.
Buy Now, Pay Later
The Plum Card offers more wiggle room than other charge cards, however, with their Pay Late option. Even the most meticulous planning can’t foresee things such as clients not paying their bill, a check not clearing in time, delayed payment because of a bank holiday, or simply a rough sales month. The Plum Card offers ease of mind by allowing cardholders 60 days after the monthly due date to pay off a balance interest-free – just be sure to make the minimum payment (see terms).
Conversely, the Plum Card also rewards business owners for paying their balances early with a 1.5% Early Pay discount which awards an uncapped 1.5% cash back when payments are made at least 10 days before the balance is due, restock your business with inventory, supplies, and other needs.
Amex business cards, in particular, are positioned to cover large business expenses because they do not have a preset spending limit. This is an especially useful feature for owners who will need a bit of time determining what their regular costs will be. If there’s ever a business emergency, the Amex Plum Card can handle last-minute expenditures with ease – an invaluable card benefit that grants immediate peace of mind. Just mindful that the lack of a preset spending limit does not mean unlimited purchasing power.
Should You Apply for the Plum Card?
The American Express Plum Card® is a great business card option for companies in the beginning stages. However, the above-average annual fee might make it difficult for those with steady income might not be willing to pay – even with the $250 being waived the first year. An alternative business card with no annual fee is the Blue Business Cash Card from American Express.