Are you looking to replace your Costco business card in 2016? In addition to offering some of the most renowned charge cards for business, American Express has two additional choices in business cards that we think you should consider: The Plum Card and SimplyCash Plus Business Card.
Both of these are quality offerings and could be the best business card for you depending on your business income level, number of employees, monthly expenses, and what you spend your money on.
Let’s take a look at the key features of each business card from American Express.
The Enhanced Plum® Card from American Express OPEN
The Plum business card bridges the gap between a charge card, where the full balance is due monthly, and a credit card with revolving payment terms. The Plum card offers trade terms of Net-60. You can either pay your balance in full within 10 days of your statement closing date and receive a 1.5% discount, or take up to two months to pay the full balance with no interest.
The Plum card also lets you choose when your billing cycle ends, so you can set dates that coincide with cash flow into your company.
This card has a $0 introductory annual fee for the first year, then $250.
Credit RequiredExcellent Credit
Rewards ProgramPay in full within ten days, get 1.5% cash back or pay as little as 10% and take up to 2 months to pay off the balance, interest free.
SimplyCash® Plus Business Card from American Express OPEN
The American Express SimplyCash business credit card is more like a conventional credit card, with a set APR of either 12.49%, 17.49% or 19.49%, depending on your creditworthiness.
The big news for this card is that for 2016 it has decided to go plus-sized. How? By increasing the caps on its bonus category rewards from $25,000 to $50,000. Meaning more cash back for your small business.
This card also comes with a 0% introductory APR offer for 9. And new cardholders can also earn up to an additional $500 cash back. Amex is offering an additional 2% cash back in statement credits on up to $25,000 in purchases made on the Card within the first 6 months. This is in addition to the cash back you can receive as part of the automatic benefits of your card. This offer is good on new applications through August 3, 2016.
In addition to the signup offer, the SimplyCash Plus card offers up to bonus cash back in certain spending categories, making it competitive with consumer credit cards like Discover it and Chase Freedom. You’ll receive cashback bonuses of:
- 5% for wireless service and office supplies
- 3% on a cash back category of your choice, including gas, restaurants, airfare and other categories.
- 1% on everything else
You can get free employee SimplyCash Plus business cards and purchases on employee cards count toward your cash back bonuses, too. You can earn at the 5% and 3% rates up to $50,000 each year in each category. After the first $50,000 in combined spending in your 5% bonus categories and in your 3% bonus category, you’ll continuing earning 1% for these purchases.
On top of that, you can now make purchases on your SimplyCash Card in excess of your spending limit – and get cash back on those purchases too – with no overlimit fees, calls to make or steps to take!
The amount you are allowed to spend over your credit limit is not unlimited. It will depend on factor like your use of the SimplyCash Card and payment history. Additionally, the amount you above your credit limit is due in full each month as part of your minimum payment due
There is no annual fee.
Credit RequiredExcellent Credit
Rewards Program5% cash back at U.S. office supply stores, 5% cash back on services from U.S. wireless telephone service providers, 3% cash back on gasoline at U.S. stand-alone gas stations.
Signup Bonusup to $500 cash back by getting an additional 2% cash back on up to $25,000 in purchases made within the first 6 months.To be eligible for this offer, your application must be received by August 3, 2016
American Express OPEN Benefits
Both cards are considered American Express OPEN cards, which means cardmembership makes cardmembers eligible for all the benefits of American Express OPEN Cardmembership, which includes:
- access to the exclusive American Express OPEN forum
- networking with other Cardmembers
- the American Express OPEN Savings program
- customized, online statements
Both cards provide:
- Purchase protection
- Identity theft assistance
- Extended warranty
- Dispute resolution
- A host of travel benefits
The Plum card adds return protection, where Amex will refund the purchase price of an item up to $300 per item and $1,000 per year, if a store won’t accept an eligible item for return that you purchased with your Plum card.
If your business costs vary widely and a card with no pre-set spending limit and trade terms appeals to you, the Plum card is the way to go. One of the benefits of a charge card is you never accrue any interest, and the Plum card offers a nice opportunity to earn 1.5% cash back for paying your bill when the statement arrives. However, unlike with a regular American Express charge card, you have that “safety net” of Net-60 terms.
If you run a business with multiple employees, especially employees who travel frequently for business, the SimplyCash Plus credit card has more advantages. Additionally, if most of your expenditures are in the areas of gasoline and/or office supplies, the cash back bonuses can really pay off. If you’re in the market for a regular business credit card, SimplyCash Plus is simply one of the best available.