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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‡
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Card type(s)
Business
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Recommended credit score
Excellent, Good
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Benefits
- Take up to 60 days to pay with no interest, when you pay your minimum due by the payment due date
- Enjoy international travel without additional fees on purchases made abroad
Additional benefits:
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.
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.
No foreign transaction fees: The card doesn’t charge a fee for purchases abroad.
How to earn rewards
The Plum Card offers the 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 by your due date.
The discount 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.
Who is the Plum Card from American Express best for?
The Plum Card doesn’t allow you 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 cards without the early payment requirement.
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.
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Rewards rate
- 5% unlimited cash back on hotels and rental cars booked through Capital One Travel
- 2% unlimited cash back on all other purchases (no limits or category restrictions)
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Benefits
- Get your $150 annual fee refunded every year after spending at least $150,000
- Your spending limit is flexible and adjusts based on factors such as your purchase, payment, and credit history
- You’ll never be charged interest since your balance is due in full every month
Why we like it: The Capital One Spark Cash Plus offers 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.
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Annual fee
$195
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Welcome offer
Earn $1,000 bonus cash back after spending $10,000 in the first 3 months
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Card type(s)
Business, Travel
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Ongoing Purchases APR
Flex for Business Variable APR: 19.49% – 27.49%
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Recommended credit score
Excellent/Good Credit
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Rewards rate
- 5% total cash back on travel purchased through Chase Travel℠
- 2.5% total cash back on purchases of $5,000 or more
- 2% cash back on all other business purchases
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Benefits
- No foreign transaction fees and trip cancellation/trip interruption insurance
- Fraud protection, zero liability protection, purchase protection, cell phone protection, and extended warranty protection
- No additional cost for employee cards
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. 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.
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Annual fee
$0
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Welcome offer
Earn a $250 statement credit after you make $3,000 in purchases on your card in your first 3 months
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Card type(s)
Business, Cash-Back
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Introductory Purchases APR
0% on purchases for 12 months from date of account opening
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Ongoing Purchases APR
17.99% – 25.99% Variable
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Recommended credit score
Excellent/Good
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Rewards rate
- 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%
- 1% cash back on all eligible purchases after spending $50,000 per calendar year (cash back earned is automatically credited to your statement)
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Benefits
0% intro APR on purchases for 12 months from the date of account opening (then variable rate 17.99%–25.99%, based on your creditworthiness and other factors as determined at the time of account opening; APRs will not exceed 29.99%)
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).
This article was edited by Rebecca McCracken
Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. 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.