Verdict: The American Express OPEN Plum Card can help business owners better manage their expenses and avoid finance charges, while still enjoying a card with flexible payment options. The card provides a wide range of benefits characteristic of the American Express line of credit cards.

Overview:
American Express OPEN introduced the American Express Plum Card in 2007. It is a trade terms card that offers flexible payment options and pre-pay bonuses for business owners with annual revenue in the 6- to 7-figure range.

How This Card Works:
First, let’s define “trade terms.” Traditionally, businesses may provide lines of credit to other businesses as a professional courtesy. Trade terms help business owners manage their cash flow better. Businesses can receive materials and services they need, and then pay for them as money comes in.

For instance, if you’re a retailer, trade terms you’re your wholesaler can prevent you from having to pay for items you haven’t sold yet. Typical trade terms are “Net-30” (payment due 30 days after purchase) or “Net-60” (payment due 60 days after purchase.)

But not every business is willing to offer trade terms, especially when money is tight for everyone. The American Express Plum Card lets you get trade terms on any purchase for your business, simply by using the card. The card also rewards you for paying your balance in full.

When you use the American Express Plum Card, which has no pre-set spending limit, you can earn a 1.5% discount on eligible purchases when you pay your balance in full within 10 days of the statement closing date.

You also have the option of deferring payment. If you pay at least 10 % of the balance from new activity on our billing statement, plus the entire amount of any previously deferred payment, you can defer payment of 90% of your new purchase until the closing date of your next billing cycle with no penalties. In other words, you can enjoy “Net-60” terms on new purchases, providing you pay off your existing balance.

Benefits:
American Express tends to be very generous with its benefits for CardMembers, and the Plum card is no exception. Perhaps most notable is the Open Savings program, which provides savings from select companies and vendors on all purchases when you use your American Express OPEN Plum card. The Plum website provides a forum where business owners and Cardmembers can network, discuss money management, and brainstorm ideas to grow their businesses.

This review would go on forever if I listed all the benefits. Some other highlights include:

• Roadside assistance up to 4 times per year.
• Car Rental Loss & Damage Insurance
• Baggage Insurance Plan and Travel Accident Insurance
• Purchase Protection & Return Protection
• 24-hour Identity Theft Assistance
• 24-hour Global Assist Hotline (when traveling more than 100 miles from home)

Fees:
The American Express OPEN Plum Card has an annual fee of $185, waived for the first year. You can receive one additional Plum Card with no annual fee. Subsequent additional cards have a $45 annual fee.

Penalties for late payments vary, and could be as much as $39 or 1.5% of the delinquent balance, or 2.99% of a “seriously delinquent” balance.

Since there is no pre-set spending limit, there are no over-the-limit fees.

Pros:

• Flexible payment terms
• No finance charges
• No annual fee for the first year
• Generous benefits, especially for travelers
• No pre-set spending limit
• Discounts when you buy from OPEN Savings partners

Cons:

• Must have revenue of at least 6 figures annually to qualify
• $185 annual fee after the first year
• No rewards program

(No Ratings Yet)

 Loading ...