The Plum Card from American Express OPEN Review

We published a list of small business credit cards earlier this year and if you look at that list today, you might notice a new addition or two.  Previously, the offer on The Plum Card® from American Express OPEN wasn’t that attractive, as the card contained a high annual fee with a non-existent rewards program.  Sure, it came with perks but when consumers are in need of credit, it’s important that they receive not only a good line of credit, but also an offer that forces them to use their card on all purchases because of the money saved.  After a quick revamp, American Express has made certain that The Plum Card from American Express OPEN is your everyday small business charge card.

The premise is simple.  The Plum Card® from American Express OPEN is not a credit card but a charge card.  This means that your purchases must be paid in full, otherwise you will receive penalties and eventually have the account closed.  However the two ways  in which you can pay your purchases each month makes this card super awesome and are the following:

  1. Get a 2% Discount consisting of a 1.5% Early Pay Discount plus, for the first 6 months, get an extra 0.5% on all purchases, up to $250,000
  2. If you pay at least 10% of your bill, then you can take up to two full months to pay the rest.  All other charge cards allow for a one-month payoff, giving you extra time with this small business charge card.

The annual fee of $250 might still be a problem for consumers but that fee is now waived for the first year, giving you a good amount of time to test drive The Plum Card from American Express OPEN.  With that annual fee comes an extensive list of perks including:

  • Roadside travel assistance 24/7
  • Travel insurance up to $100,000
  • Extended warranties on all products purchases using your AMEX card
  • Identity theft assistance

If you have excellent credit and a small business in need of purchasing power, cash back opportunities and perks known only to American Express cardholders, then you will want to consider signing up for The Plum Card® from American Express OPEN.

“Disclaimer: This content is not provided or commissioned by the issuer. Opinions expressed here are author’s alone, not those of the issuer, and have not been reviewed, approved or otherwise endorsed by the issuer. This site may be compensated through the issuer’s Affiliate Program.”

Last Edited: July 19, 2013 @ 3:27 pmThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Michael Pruser

Michael Pruser is the man. After spending a ton of money to go to the private University of Miami, Michael now enjoys spending time at home, writing personal finance articles for the world to read. His journey out of debt continues 500 words at a time.

Comments

  1. Good review – I personally have this card for my business and prefer it over most other cards simply because of the 1.5% back regardless of what you buy just make sure to pay it off almost immediately.

  2. Definitely not a fan of the annual fee bit. However, the fact that they waive the first year is a plus. Great review.

  3. Warning about the Plum card for your Readers: I just got the Plum Card and was made aware of something that the Customer Service Rep wasn’t aware of until I pressed the issue and he had to find out the answer from a supervisor: The 1.5% is strictly applied to payments within the first 10 ten days after the monthly cycle closes. The caveat there is that payments made during the monthly cycle do not get the discount reward. That’s an important distinction that will not necessarily be clear to anyone reading about the card and I think you should know that. I now realize that if I pay “too early”, the discount doesn’t apply. I was very disappointed. AMEX charge cards may not have a preset limit but they do have limits based on spending patterns. If I have $5000 available and use that in the first week of the monthly cycle on unforeseen expenses with several auto-debits still to come, I need to pay down the balance quickly within a few days and thus NOT get the discount on that payment. The discount only applies to the ENDING BALANCE. Now, if you have a stratospheric limit on the card, it won’t matter. But for many small business owners juggling expenses and spending limits while trying to get maximum rewards, this can and will be a nuisance. Applicant beware.