The Plum Card® from American Express is a unique business credit card that gives business owners up to 60 days to pay off their monthly balance with no interest. However, you can earn an early-pay discount in the form of cash back if you pay your bill sooner. Here’s how the card works and what to consider before applying.
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Annual fee: $250 (see rates and fees)
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Welcome offer: None
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Rewards: 1.5% cash back on eligible charges when you pay within 10 days of your statement closing date.
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Recommended credit score: Good to Excellent (670 – 850)
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More details: Opt for cash back or a net-60 payment term; no preset spending limit
APR
The Plum Card from American Express doesn’t charge an interest rate. Instead, the card requires a minimum payment by your monthly due date and full payment within 60 days of your monthly statement date. Otherwise, you may be subject to a late fee of up to 2.99% of your past-due balance.
Annual fee
The card charges a $250 annual fee.
Welcome offer
The Plum Card doesn’t offer a welcome bonus to new cardholders.
Intro offer
The Plum Card doesn’t offer an introductory APR promotion.
Rewards rate
How to earn rewards
The Plum Card offers unlimited 1.5% cash back on eligible purchases, but the rewards aren’t automatic.
Rather, the card offers rewards such as an early-pay discount on the portion of your bill that you pay within 10 days of your statement due date. To qualify, you must pay at least the minimum amount due, 10% of the balance from new activity, by your due date.
The cash back will apply only to the amount you pay by that point. For example, if you have a $5,000 balance and pay $2,000 within the first 10 days, you’ll earn $30 for that month.
How to redeem rewards
Your early-pay discount will be automatically applied to your balance on your next monthly statement.
Additional benefits
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Extra days to pay: If you need more time to pay off your monthly bill, American Express offers up to 60 days to pay interest-free. To qualify for this benefit, you need to pay at least the minimum amount due plus any previously deferred balance by your current due date. Then, you’ll have until the following month’s due date to pay the rest.
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No preset spending limit: Instead of giving you a credit limit, the Plum Card adjusts your purchasing power based on your card usage and other factors.
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No foreign transaction fees: The card doesn’t charge a fee for purchases abroad.
Who is the Plum Card from American Express best for?
The Plum Card is a charge card, meaning you don’t have the option to carry a balance beyond the 60-day payment terms. As a result, the card is best suited for small business owners who don’t need more than a couple of months to float their operating expenses.
While the early-pay discount is also nice, business owners can enjoy better rewards from other charge cards without the early payment requirement — more on those in a minute.
The Plum Card from American Express benefits
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Extended payment terms: Most business credit card issuers give you less than a month to pay off your monthly balance to avoid interest charges. With the Plum Card, you’ll get up to 60 days.
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No credit limit: The Plum Card is worth considering if you want a card with purchasing power that grows with your business.
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Choose your billing cycle: You’ll have the flexibility to receive your monthly bill when it works best for you and your accounts payable needs.
The Plum Card from American Express potential drawbacks
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Requirement to earn cash back: If your top priority is earning rewards, you may be able to get similar or better cash-back rates on a card that doesn’t require you to pay within 10 days to earn it.
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Few benefits: Beyond the 60-day payment terms, the card doesn’t offer any other notable perks. It also doesn’t provide a welcome bonus to new cardholders.
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Steep annual fee: The card charges a relatively high annual fee, especially for a card with few benefits.
Where can you use The Plum Card from American Express?
You can use the Plum Card anywhere American Express is accepted. That includes most merchants in the U.S., though smaller businesses may not accept the card.
While the card doesn’t charge foreign transaction fees, American Express isn’t widely accepted abroad, so you may need to have a Visa or Mastercard credit card as a backup.
How to make The Plum Card from American Express payment
There are a few different ways you can make a payment on your Plum Card, including:
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Online: Log in to your online account or the American Express mobile app.
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Phone: Call 800-472-9297 to pay over the phone.
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Mail: Send your payment to American Express, P.O. Box 96001, Los Angeles, CA 90096-8000.
The Plum Card from American Express customer service info
Alternative cards to consider
If you’re not sure whether the Plum Card is the right fit for you, or you want to compare a few options before applying, here are alternatives to consider.
Capital One Spark Cash Plus
Why we like it: The Capital One Spark Cash Plus is a charge card offering unlimited 2% cash back on every purchase and 5% back on hotels and rental cars booked through Capital One Travel. While you have to pay your balance in full each month, there’s no extra requirement to earn the card’s impressive rewards rate.
As a new cardholder, you can also earn a cash bonus of up to $3,000 when you apply by March 11, 2024. That’s $1,500 when you spend $20,000 in the first three months and another $1,500 when you spend $100,000 in the first six months. The card has an annual fee of $150, but you can get it refunded if you spend $150,000 throughout the year.
Recommended credit score: Excellent (740 – 850)
Ink Business Premier® Credit Card
Why we like it: The Ink Business Premier Credit Card offers 2.5% cash back on purchases of $5,000 or more and unlimited 2% back on everything else. You can also earn 100,000 bonus points — worth $1,000 in cash back — after you spend $10,000 in the first three months.
While the card defaults to full payments each month, you can opt to pay qualified purchases of $500 or more over time with interest by using Chase’s Flex for Business feature. The card has an annual fee of $195.
Recommended credit score: Good to Excellent (670 – 850)
American Express Blue Business Cash™ Card
Why we like it: If your business is relatively new or you don’t have a lot of expenses yet, consider the American Express Blue Business Cash Card. The card offers 2% cash back on the first $50,000 you spend each calendar year, then 1% back after that (see rates and fees).
New cardholders will also earn a $250 statement credit when they spend $3,000 in the first three months. There’s also an introductory 0% APR promotion on purchases for 12 months, after which the variable APR ranges from 18.49% to 26.49%. The card has no annual fee.
Recommended credit score: Good to Excellent (670 – 850)
This article was edited by Rebecca McCracken
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn’t include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.