The Plum Card from American Express Open Card Review

Advertiser Disclosure

There are many options for credit and charge cards out there for business owners.  Between the major issuers, there are literally dozens.  However, each is targeted at a different business owner, as each business is uniquely different.  The Plum Card from American Express may be a card that you have not heard of before, so let’s dig into the benefits and see what it has in store!

 

Apply: The Plum Card® from American Express OPEN

Full marketing details:

  • Get a 1.5% discount for paying early or up to 60 days to pay without interest, or both each month.
  • Do business on your terms.
  • Pay no annual Membership fee for your first year. Then, pay $250 annually.
  • No annual fee for Employee Cards.
  • Terms & Restrictions Apply.

Benefits

  • Annual Fee

The annual fee of $250 is steep, but for card members in their first year, the fee is waived.  This is great for people looking to just try out a credit card first to see if its right for them.

  • Charge Card versus a Credit Card

One “benefit” is that you’ll be forced to pay off this card each month.  There are no interest charges as a result.

  • Deferred Payments

One unique feature of this card is that you can defer payment across months.  All you must do is pay 10% of the new charges of the month, plus all other deferred payments from previous months.  Then, you can defer the other 90% to next month’s bill.  None of these deferments are charged any interest, so that’s a major plus for business owners.

  • Early Payment Discount

For all people that pay within 10 days of your statement due date, you’ll earn a 1.5% discount on all purchases that month.  That’s a great benefit for those that are on top of their finances and can handle large credit.

  • Choosing Your Due Date

Another great option for business owners is the ability to choose when to pay your bill when you open your card, to fit your business needs.  This is a great option, because every business is different.

  • No Pre-Set Spending Limit

You can run up the bill, but you’ve got to pay it at the end of each month, remember!

  • Additional Benefits

The American Express standard “additional benefits” come standard on this card as well.  You’ll receive travel accident insurance and roadside assistance, car rental loss and damage insurance, purchase protection and extended warranty, and a baggage insurance option for when you travel.

 

The Nitty Gritty

As stated previously, there is no APR on this card, since you pay your bill each month.  In addition, you’ll pay $250 a year when after your first year to hold the card in your wallet.  Foreign transaction fees are at 2.7% for every dollar spent abroad, so be careful if you bring this card with you to foreign countries.  Penalty fees, if for whatever reason you do not pay your bill on time, is 1.5%, plus 2.99% of the past due amount.   The minimum charge is $35.

 

Conclusion

The Plum Card from American Express has some great benefits for business owners.  Between the deferred payments from month to month, to the discount for early payment, this card rocks.  The steep annual fee may be too much for some, but for others, the benefits may justify the price.