Review for The Plum Card from American Express

Jul 06, 2023 By Kelly Walker

The Plum Card is a charge card offered by American Express explicitly designed for businesses. It provides flexible payment terms and offers unique benefits to help companies to manage their cash flow effectively.

Unlike a traditional credit card, the Plum Card allows cardholders to choose between two monthly payment options. They can either pay the entire statement balance by the due date to avoid any interest charges or take advantage of the Extended Payment Option. With the Extended Payment Option, cardholders can defer payment on a portion of the balance while still being able to earn the early payment discount. This gives businesses greater flexibility in managing their cash flow and allows them to allocate funds strategically.

The Plum Card from American Express stands out in business credit cards as a unique offering. Designed to cater specifically to the needs of businesses, this charge card provides flexibility, financial management tools, and enticing benefits.

Pros and Cons of the Plum Card from American Express

Following are the Pros and Cons of the Plum Card from American Express:

Pros of Plum Card from American Express

Following are the cons of the Plum Card from American Express are as follows:

Flexible Payment Terms

One of the standout advantages of the Plum Card is its flexibility in payment terms. Cardholders can pay the complete statement balance each month or utilize the Extended Payment Option, allowing them to defer payment on a portion of the balance. This flexibility enables businesses to align their payments with cash flow patterns and effectively manage expenses.

Early Payment Discount

The Plum Card offers an attractive early payment discount. Cardholders who pay at least the minimum amount due within ten days of the statement closing date can earn a 1.5% discount on eligible charges. This discount can result in significant savings over time, allowing businesses to reduce expenses and improve their bottom line.

Expense Management Tools

American Express provides robust expense management tools with the Plum Card. These tools enable businesses to track and analyze their spending more effectively. Detailed reporting capabilities, transaction categorization features, and the ability to add notes or tags to transactions simplify expense tracking and aid in financial planning and control.

Access to American Express Benefits

The Plum Card comes with access to various benefits offered by American Express. These benefits may include purchase protections, extended warranty coverage, and access to exclusive events or experiences. Cardholders can use these additional perks to enhance their business operations and enjoy exclusive privileges.

Enhanced Control and Visibility

The Plum Card gives businesses enhanced control and visibility over their finances with its expense management tools and flexible payment options. Analyzing spending, categorizing transactions, and setting payment terms allows companies to make informed financial decisions and maintain better cash flow management.

Quality Customer Service

American Express is renowned for its quality customer service. Plum Cardholders can expect excellent support and assistance whenever they have questions or encounter issues. The responsive and helpful customer service ensures a smooth experience and reinforces the trust businesses place in American Express.

Potential for Cash Flow Optimization

The Plum Card's features, such as flexible payment terms and the early payment discount, provide businesses with the potential to optimize their cash flow. By strategically managing their payments and taking advantage of the early payment discount.

Cons of Plum Card from American Express

While the Plum Card from American Express offers several benefits, it's essential to consider the following cons:

Limited Acceptance

One of the primary drawbacks of the Plum Card is the limited acceptance of American Express cards compared to other major credit card networks. While American Express has made efforts to expand its merchant network, there may still be instances where businesses encounter merchants or vendors that do not accept American Express. This limitation can restrict the usability and convenience of the Plum Card, especially in certain industries or geographic regions.

Annual Fee

The Plum Card comes with an annual fee that businesses need to consider. While the fee can vary depending on the specific card and its benefits, it is an additional cost to factor into the card's overall value. Businesses should evaluate whether the benefits and potential savings the Plum Card provides outweigh the annual fee and align with their spending patterns and financial goals.

Disciplined Payment Approach

The Plum Card requires businesses to pay the monthly statement balance to maintain the card's benefits and avoid potential interest charges. This disciplined payment approach may not be suitable for companies with unpredictable cash flows or those that prefer the flexibility of carrying a balance. It requires businesses to carefully manage their cash flow and ensure they have sufficient funds to cover the entire statement balance by the due date.

Potential Interest Charges

If businesses cannot pay the full statement balance by the due date, they may incur interest charges on the remaining balance. The interest rates associated with the Plum Card can be relatively high compared to other financing options, and businesses need to be mindful of these charges if they anticipate carrying a balance from month to month.

Dependent on American Express Services

As the Plum Card is issued by American Express, businesses depend on the services and infrastructure provided by the company. Any disruptions or issues with American Express's systems or customer service can impact the cardholder's experience and may require businesses to seek alternative payment methods or incur additional costs.

Potential for High Credit Requirements

American Express typically targets its premium card offerings, including the Plum Card, toward businesses with established credit histories and higher credit scores. This may limit the accessibility of the Plum Card for small businesses or startups with limited credit profiles, making it more challenging for them to qualify for the card.

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