The Plum Card from American Express review: Simple cash back and payment flexibility for businesses
Editor's Note
The Plum Card® from American Express overview
The Plum Card® from American Express is a unique business card with a flexible payment option. You can earn a discount of 1.5% for paying early or up to 60 days interest-free (on new balances) when you make the minimum payment. However, unless you're a business with fluctuating cash flow, other higher rewards-earning cards will likely suit you better. Card Rating*: ⭐⭐
*Card Rating is based on the opinion of TPG's editors and is not influenced by the card issuer.
The Amex Plum Card is a simple business card with no preset spending limit* and an annual fee of $250 (see rates and fees). Normally, you need to pay this type of card in full each month, but the Plum card allows you an up to 60-day interest-free period, as long as you make the minimum payment by the due date.
Still, this card is very light on benefits. In most cases, you'd be better off applying for one of TPG's top business credit cards. Many cards on this list have modest annual fees, first-year benefits valued at more than $1,000, and comparable (or better) ongoing reward rates.
TPG recommends a good to excellent credit score to increase your chances of being approved. Let's take a closer look at the Plum Card to see if it might be a good fit for you.
*No Preset Spending Limit means your spending limit is flexible. Unlike a traditional card with a set limit, the amount you can spend adapts based on factors such as your purchase, payment and credit history.
Plum Card pros and cons
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Plum Card welcome offer
Unfortunately, the Plum Card does not have a welcome offer.
Many other business cards with similar or lower fees have valuable welcome offers, so it's quite disappointing to see no welcome offer despite a high annual fee on this card.
Related: This month's best welcome offers
Plum Card benefits
With the Plum Card, you'll earn a 1.5% discount on eligible charges you pay within 10 days of your statement closing date. The discount is applied to your account as a credit on the following statement. You don't need to manage rewards or choose from several different redemption options — everything is automated for you.
You also have the option to carry a balance interest-free for up to 60 days. To qualify for this option, you'll need to pay at least the minimum amount due (10% of new purchases plus all of any previously deferred balance) by the due date. However, deferred amounts are not eligible for the 1.5% discount.
This card has no foreign transaction fees (see rates and fees) and comes with extended warranty protection, return protection and secondary rental car loss and damage insurance.*
*Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
Additionally, you can get employee cards for no extra cost, and you'll get a suite of expense management tools to help oversee your spending.
This is a very light list of benefits for a card with such a substantial annual fee. If you don't need the option to carry a balance interest-free for 60 days, you'll almost certainly get more value from a different card.
Related: Who qualifies for a business credit card?
Earning cash back on the Plum Card
With the Plum Card, you'll earn 1.5% cash back on all purchases when you pay your balance within 10 days of the statement closing date. If you don't pay within this time frame, you will not earn any rewards on your spending.
This earnings rate is especially unremarkable since many cash-back cards offer 1.5% or more on all purchases. What's more — many of these cards come with no or a lower annual fee and don't have restrictions like the Plum card's 10-day payment window.
Related: Cash back vs. travel rewards: How to choose a credit card
Redeeming cash back on the Plum Card
Redeeming cash back on the Plum Card is simple, as it is automatically applied as a credit to your next billing statement.
This can be beneficial if you don't want to have to worry about how to redeem cash back. However, it's a drawback if you like to pool for cash back and redeem it at one time.
I prefer to earn points and miles instead of cash back, as I tend to get great value with point redemptions. Thus, I get far more value from my American Express® Gold Card than I would from this card.
Related: The best travel rewards credit cards
Which cards compete with the Plum Card?
Many other cards are more enticing than the Plum Card, with lower or no annual fees and better earnings potential.
- If you prefer no annual fee: The Capital One Spark Cash Select has no annual fee and earns 1.5% cash back on every purchase, with no limit to the amount you can earn. For more information, check out our full review of the Capital One Spark Cash Select.
- If you want bonus rewards on business spending: The Ink Business Preferred® Credit Card has a $95 annual fee and earns 3 points per dollar spent on the first $150,000 spent each year on common business categories. For more information, check out our full review of the Ink Business Preferred.
- If you prefer to earn Membership Rewards points: The Blue Business® Plus Credit Card from American Express has no annual fee (see rates and fees) and earns 2 Membership Rewards points per dollar spent on up to $50,000 in eligible business purchases each year, then 1 point per dollar spent thereafter. For more information, check out our full review of the Blue Business Plus card from American Express.
For additional options, check out our full list of the best business cards.
The information for the Ink Business Preferred has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: Small-business credit card vs. corporate credit card: Which is right for your business?
Is the Amex Plum Card worth it?
The Amex Plum Card is only worth it if you have a business with variable cash flow and need extra time to pay by taking advantage of the 60 days to pay in full. Generally, there are better cards that offer excellent welcome bonuses and other business-related perks that are likely better options for your needs.
Bottom line
The main value of the Plum Card from American Express is its simplicity; there's no credit limit to navigate, and it earns 1.5% back on eligible early payments. However, since you can earn 1.5% back (or more) with several different no-annual-fee business credit cards, the Plum card is rarely a good fit.
For rates and fees of The Plum card from American Express, click here.
For rates and fees of The Blue Business Plus Card, please click here.
Apply here: The Plum Card from American Express