The Plum Card^® from American Express Review [2024]: A Credit Card With Cash Flow Flexibility

Amex Plum Card basics

The Plum Card^® from American Express isn’t your typical business credit card. Typically, credit cards (business or personal) offer a 25-day grace period. You must then pay your entire balance or accrue interest charges daily until you pay the balance in full. That’s not how the Plum Card® works.

Like many American Express cards, your entire balance is typically due monthly; you don’t get a grace period, which sounds scary. However, the Plum Card® offers some flexibility. To avoid a late fee, you must pay at least 10% of your new charges plus any deferred charges from the previous month, so all charges must be paid within 60 days.

Here’s what I like about it. If you pay any part of your new eligible charges (purchases of goods or services) within ten days of the statement closing date, you’ll get a credit for 1.5% of the amount paid. It’s like getting rewarded for paying your bill.

Even if you can only afford to pay a small portion of your bill, it can feel good knowing you’re getting 1.5% cash back on the portion of your eligible charges balance that you pay within 10 days of your statement closing date, as long as you pay at least your minimum payment.

Here’s an example.

You charge $5,000 on your Plum Card and pay the total off within ten days of the statement closing date. On your next statement, you’ll receive a credit for $75 just for paying your bill.

Now let’s say you paid only $2,500 and deferred the rest to the next month. You’d then earn $37.50 on the portion paid early while giving yourself more time to pay the rest.

Remember, you must pay all balances in full within 60 days, or you’ll incur late charges.

To determine if the card is worth it, determine your business’s average annual spending on a credit card. If you spend at least $16,667 annually and pay it off early to earn the discount, your annual fee is a wash.

Who should get the Plum Card® from American Express?

The Plum Card^® from American Express is not your typical credit card, so it’s not right for every business owner. I’ve seen it work well for business owners that:

• Invoice clients and have to wait 30+ days for payment
• Provide services that don’t receive immediate payment, such as waiting for insurance payments
• Purchase inventory to sell but must wait for it to sell

If any of these sound like your business, the Plum Card® may be a good fit. However, I must mention that this card does not offer rewards, such as cashback on certain types of purchases, nor does it offer travel rewards. So, if you’re used to a typical business credit card that rewards you for spending, not paying, you may want to look elsewhere.

This card is best for business owners who need some flexibility with their cash flow but don’t want to carry a large amount of credit card debt and don’t care about rewards.

Plum Card® benefits and perks

• Net-60 payment terms: Receive two full months to pay your charges with no interest, avoiding typical credit card interest charges.
• Choose your billing cycle: Change your billing date according to your business’s cash flow to maximize the chance to take advantage of the Early Pay Discount or avoid late charges.
• Early pay discount: 1.5% cash back on the portion of your eligible charges balance that you pay within 10 days of your statement closing date, as long as you pay at least your minimum payment.
• No preset spending limit: Cardholders don’t have a predetermined spending limit like a traditional credit card. This doesn't mean you can spend endlessly, but it does provide flexibility based on your purchase, payment and credit histories.¹ <p>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.</p>
• Protection policies: Includes extended warranty protection, purchase protection, and car rental loss and damage insurance (secondary coverage).² <p>When an American Express® Card Member charges a Covered Purchase to an Eligible Card, Extended Warranty§ can provide up to one extra year added to the Original Manufacturer’s Warranty. Applies to warranties of five (5) years or less. Coverage is up to the actual amount charged to your Card for the item up to a maximum of $10,000; not to exceed $50,000 per Card Member account per calendar year.</p><p></p><ul><li>Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. </li><li>Please visit americanexpress.com/benefitsguide for more details. </li><li>Underwritten by AMEX Assurance Company.</li></ul><p></p> ³ <p>When an American Express® Card Member charges a Covered Purchase with their Eligible Card, Purchase Protection can help protect their Covered Purchases for up to 90 days from the Covered Purchase date if it is stolen or accidentally damaged. The coverage is limited up to $1,000 per occurrence, up to $50,000 per Card Member account per calendar year.</p><p></p><ul><li>Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. </li><li>Please visit americanexpress.com/benefitsguide for more details.</li><li>Underwritten by AMEX Assurance Company.</li></ul><p></p> ⁴ <p>Car Rental Loss and Damage Insurance can provide coverage up to $50,000 for theft of or damage to most rental vehicles when you use your eligible Card to reserve and pay for the entire eligible vehicle rental and decline the collision damage waiver or similar option offered by the Commercial Car Rental Company. This product provides secondary coverage and does not include liability coverage. Not all vehicle types or rentals are covered. Geographic restrictions apply.</p><p></p><ul><li>Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. </li><li>Please visit americanexpress.com/benefitsguide for more details. </li><li>Underwritten by AMEX Assurance Company. Car Rental Loss or Damage Coverage is offered through American Express Travel Related Services Company, Inc.</li></ul><p></p>
• Expense management tools: Provides helpful tools to run your business, including online statements, a year-end summary, Vendor Pay by Bill.com, and automatic synchronization with QuickBooks® (upon activation).
• Free employee cards: Includes up to 99 employee cards for no charge, which you can earn the Early Pay Discount on if you pay within ten days of the statement closing date.

Earning & redeeming

The only way to earn or redeem rewards with the Plum Card® is 1.5% cash back on the portion of your eligible charges balance that you pay within 10 days of your statement closing date, as long as you pay at least your minimum payment. You won’t receive actual cash back either; you receive the reward earned as a statement credit.

However, this rate isn’t the highest reward you can earn on many cashback credit cards. If your business doesn’t have cash flow issues, you may consider other options that pay higher rewards.

FAQ

Others cards to consider

If the rewards for paying early that the Plum Card from American Express offers, consider these options.

American Express^® Business Gold Card

If you want a small business card with no predetermined credit limit, consider the American Express^® Business Gold Card. With a valuable welcome offer and a robust points-earning system, this card brings a lot of potential to save money and earn valuable rewards. You can earn 4X Membership Rewards Points on purchases in the two eligible categories with the most spend each month from 6 eligible categories (up to $150,000 in combined purchases each calendar year, after that 1X), 3X Membership Rewards points on flights and prepaid hotels booked at amextravel.com, and 1 point per $1 spent on other eligible purchases.

Ink Business Cash^® Credit Card

Looking to simply save on your bottom line? Consider the Ink Business Cash^® Credit Card. This card is a straightforward cashback card with heaps of savings potential. To start, you can earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening.

You’ll also earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year; 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year; and 1% cash back on all other purchases. Lastly, you’ll have a 0% introductory APR (annual percentage rate) on purchases for 12 months (then 17.74% - 25.74% Variable).

Flexible Payment Options for Business Owners

The Plum Card^® from American Express

3.5

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

The Plum Card^® from American Express

3.5

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

Apply Now

Why We Like It

No preset spending limit

See rates and fees | Terms Apply

Apply Now

See how these cards compare:

American Express® Business Gold Card

• Generous welcome offer
• Up to $240 in annual flexible business credit
• Up to $155 in Walmart+ credits
• Flexible rewards structure that adjusts to your top eligible categories
• No preset spending limit¹ <p>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.</p>
• Elevated travel rewards and extensive travel protections
• See rates and fees | Terms Apply

Ink Business Cash® Credit Card

• Solid rewards on office supply, telecom spending, gas, and dining
• Generous welcome offer
• Intro APR on purchases
• $0 annual fee
• Valuable purchase and travel protections

Bottom line

There are many things I like about the Plum Card® from American Express, including its flexible payment dates, free employee cards, various purchase protection options, and the chance to earn cash back on any amount paid.

I think the card gives business owners a sigh of relief knowing they can defer up to 90% of their new charges to the next month if cash flow is an issue. However, because you won’t earn any rewards (aside from the early payment benefit), it’s not for everyone.

Flexible Payment Options for Business Owners

The Plum Card^® from American Express

3.5

FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.

The Plum Card^® from American Express

Apply Now

See rates and fees | Terms Apply

Current Offer

No preset spending limit

Annual Fee

$250

Rewards Rate

1.5% cash back on the portion of your eligible charges balance that you pay within 10 days of your statement closing date, as long as you pay at least your minimum payment

Benefits and Drawbacks

Benefits

• There’s no limit to the reward/discount you receive by paying your bill early
• Offers a flexible spending limit rather than a rigid credit line
• Doesn’t charge a foreign transaction fee

Drawbacks

• Rewards are only available for business owners who pay their bill early

Card Details

• Paying early pays off: earn an unlimited 1.5% Early Pay Discount on eligible charges paid within 10 days of your statement closing date and see the discount applied to your next statement when you pay at the least the Minimum Payment Due by the Payment Due Date.
• Take up to 60 days to pay with no interest‡, when you pay your minimum due by the Payment Due Date.
• No Foreign Transaction Fees.‡
• Terms Apply. Learn More.