Get Paid for Paying Early with The Plum Card from American Express OPEN

By Christina Majaski. Last updated 24 February 2017. 0 comments

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The Plum Card® from American Express OPEN is a unique business charge card that offers flexibility and options for the small business owner that isn't offered by other cards on the market. You can get a 1.5% discount on your purchases, or get up to 60 days to pay off your balance. Further, this card is one of the few Amex cards that does not carry a foreign transaction fee, which can be handy if your business expenses are often made outside of the United States. (See also: Best Business Travel Cards)

How This Card Works

This card is a charge card which means there’s no preset spending limit and your balance usually must be paid in full each month. However, unlike other charge cards, this card includes the option to pay at least the minimum payment (10% of the balance from new activity plus any previously deferred balance) by the payment due date, to defer payment of the remainder of the balance until the new payment due date. This gives you up to 60 days from your statement date to pay your balance, which isn’t an option you get with most other business credit cards.

(See also: Should You Get a Business Card or a Consumer Card?)

You also get a 1.5% discount on the portion of your balance that you pay within 10 days of your statement closing date. You do have to pay at least your minimum payment by your payment due date. There is a $0 introductory annual fee your first year, then it is $250.

Bonus offer: Earn a $200 statement credit after each $10,000 you spend on the card, up to $30,000, within the first three months of membership. Terms and limitations apply.

(See also: Best Credit Cards for Small Businesses)

Other Benefits

ReceiptMatch. This card includes ReceiptMatch which allows you to keep track of your expenses and receipts. You can use your mobile device to take a photo of any receipt and then upload it and match it to the transaction on your online statement.

OPEN Savings. The Open Savings benefit gives you a 5% discount or two additional Membership Rewards points for each dollar you spend with OPEN Savings merchants.

Costs

  • $0 introductory annual fee your first year, then $250
  • No APR (balance is paid in full each month)
  • No Foreign Transaction Fee

See rates and fees.

Considerations

No rewards program. Although you can get a 1.5% discount on the portion of the balance you pay within 10 days of your statement closing date, there is no rewards program or additional bonuses for purchases. Other business credit cards may offer bonus rewards for office supply, telecommunications, travel, or even advertisement purchases. (See also: Best Credit Cards for Office Supplies)

Charge card limitations. For some business owners, it can be difficult having to pay the entire balance in full each month, even with the special feature this card offers extending it to 60 days. If you rather have the option to carry your balance from month to month for a longer term, you should choose a standard business credit card instead.

Annual fee. After the first year, the annual fee to carry this card is $250, which can get expensive, especially considering how light it is on the rewards and business benefits. If you aren’t able to earn enough through the OPEN Savings network or by paying your balance early each month for the 1.5% discount, you could find this card costly. 

Competitors

Capital One Spark® Cash Select for Business: The Capital One Spark® Cash Select for Business Card offers a flat rate of 1.5% cash back on all purchases. This allows you to earn cash back on essentially any purchase you make with the card, without the limitations of when you make your payment, as long as it’s on time. Further, new cardholders can earn a one-time $200 cash bonus after you spend $3,000 on purchases within three months of approval, which could be easier to earn than the bonus offer with The Plum card. There is a 0% introductory APR on purchases for 9 months. Best of all, there is no balance transfer fee, foreign transaction fee, or annual fee for this card.

SimplyCash® Plus Business Credit Card: The SimplyCash® Plus Business Credit Card from American Express awards 5% cash back on wireless phone services purchased direct from U.S. service providers and purchases at U.S. office supply stores. You also get 3% cash back on one of the following categories of your choice: airfare, hotel rooms, car rentals, gas, restaurants, advertising in select media, and shipping. All other purchases get 1% cash back. There is a limited time offer which allows you to earn a $200 statement credit after spending $5,000 or more in qualifying purchases with your card within the first 6 months of card membership. If you spend $10,000 or more in qualifying purchases within the first year of card membership, you can earn an additional $200 statement credit. This card also comes with business benefits such as access to OPEN Savings and OPEN forum. Terms and limitations apply. There is no annual fee for this card.

Who This Card Is Best For

Although it doesn’t come with some of the features you get with other business cards, this card could still be worth carrying if you can pay your balance in full and pay at least your minimum monthly payment within 10 days of your statement closing date. Further, if you frequently shop abroad or through merchants that are part of the OPEN Savings network, you could find yourself saving and earning more with this card than others. However, if you need to have the option carry a balance from month to month or prefer a more significant rewards program and lower annual fee, you should consider one of the many other business credit cards that are available.

Terms and limitations apply.

Click here to learn more and apply for the The Plum Card® from American Express OPEN today!


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