The Plum Card®: An In-Depth Look at the Benefits and Application Process

The Plum Card® is a business credit card from American Express that provides unique benefits designed for businesses with varying cash flow needs. Its flexibility and rewards program make it an attractive choice for business owners looking to maximize their spending and cash flow management. In this detailed guide, we will explore the key features of the Plum Card®, how it works, and the process to apply for one.

What Is The Plum Card®?

The Plum Card® is a business credit card issued by American Express. It is specifically designed for business owners who need greater flexibility with their cash flow management. Unlike many other business cards, the Plum Card® does not require a preset spending limit. This feature makes it an excellent choice for businesses that need to make large or fluctuating purchases without worrying about credit limits.

The card is also notable for its rewards program and payment flexibility, making it ideal for businesses that want to streamline their expenses and maximize rewards. With its ability to earn significant cash back and the option to delay payments without incurring interest, the Plum Card® has gained popularity among small business owners, entrepreneurs, and large corporations alike.

Key Features of The Plum Card®

1. No Preset Spending Limit: One of the most appealing features of the Plum Card® is that it offers no preset spending limit. This flexibility is especially valuable for businesses that have fluctuating expenses or need to make large purchases. While this does not mean unlimited spending, it does allow businesses to adjust their spending as needed without worrying about hitting a fixed credit limit. The spending limit is determined by factors such as your creditworthiness, payment history, and overall usage of the card.
2. Payment Flexibility with 1.5% Cash Back: The Plum Card® offers 1.5% cash back on every purchase, which can be an attractive proposition for business owners who frequently make business-related purchases. Additionally, one of the most unique features of this card is its payment flexibility. If you pay your balance in full within the first 10 days after the statement date, you can earn an extra 1.5% cash back on that payment. This allows businesses to earn even more rewards while also maintaining cash flow.If you don’t pay in full within the 10-day period, you can still make minimum payments, but the card will allow extended payment options with a flexible 60-day grace period. This can be extremely beneficial for businesses that may experience uneven income flow or that need extra time to manage larger purchases without paying interest.
3. Rewards Program:
   • Cash Back on Purchases: As mentioned, the Plum Card® offers 1.5% cash back on every purchase. This straightforward rewards system ensures businesses earn cash back on everything from office supplies to travel expenses.
   • Pay Early and Get More: For those businesses that can manage to pay early, the Plum Card® provides additional rewards. Paying within 10 days of the statement will earn the business 1.5% cash back on that payment.
   • No Limit on Earnings: Unlike some rewards cards, the Plum Card® does not limit the amount of cash back a business can earn. The more your business spends, the more rewards you’ll accumulate.
4. Travel and Purchase Protections: The Plum Card® comes with a variety of protections, including purchase protection, extended warranty, and travel-related benefits such as trip delay insurance, baggage insurance, and access to American Express’s travel services. These features can be extremely helpful for businesses that need to travel frequently or make large purchases for their operations.
5. Employee Cards at No Extra Cost: The Plum Card® allows you to add employee cards at no extra cost. This means you can issue cards to trusted employees for business expenses and keep track of the spending through the central account. The ability to monitor employee purchases and ensure they stay within budget can be a valuable tool for business owners.
6. American Express Business Benefits: As an American Express cardholder, you’ll gain access to the full suite of American Express business benefits. These include personalized service, 24/7 customer support, the American Express OPEN program, and access to a network of business resources designed to help companies grow. These perks can be an excellent advantage for small business owners who need extra guidance and support as they expand.
7. No Foreign Transaction Fees: The Plum Card® does not charge foreign transaction fees, which makes it ideal for businesses that have international operations or need to make purchases in other currencies. This feature can save businesses a significant amount of money, especially when traveling abroad or dealing with international suppliers.
8. Annual Fee: The Plum Card® comes with an annual fee. This fee is typically around $250, which is higher than some other business cards, but the benefits it offers — particularly the lack of a preset spending limit and the rewards program — can offset the cost. Business owners should consider how often they plan to use the card and whether the rewards and payment flexibility justify the fee.

How to Apply for the Plum Card®

Applying for the Plum Card® is a straightforward process, but there are several factors to consider before submitting your application.

1. Eligibility Requirements:
   • Business Information: To qualify for the Plum Card®, you must own or operate a business. This can include small businesses, startups, and larger companies. You will need to provide details about your business, including its legal name, address, and tax identification number (EIN).
   • Credit Score: Like other American Express cards, the Plum Card® typically requires a good to excellent credit score (usually 700 or higher). Having a strong credit history will increase your chances of approval, as American Express considers creditworthiness when determining your limit and other terms.
   • Financial Documentation: You may need to provide financial information about your business, such as revenue, expenses, and the number of employees. This helps American Express assess your ability to manage the account responsibly.
2. Submit Your Application: You can apply for the Plum Card® online through the American Express website. The online application typically takes only a few minutes to complete. After you submit your application, American Express will review your business’s financial situation and credit history to determine whether you qualify for the card.
3. Approval Process: Once your application is submitted, American Express will notify you of its decision. If approved, you’ll receive your Plum Card® in the mail within a few days, and you can begin using it immediately for business expenses.
4. Activate Your Card: After receiving your card, you will need to activate it either online or via the phone. Once activated, you can start making purchases and earning rewards right away.

Final Thoughts on The Plum Card®

The Plum Card® from American Express is an excellent choice for businesses that need flexibility with their payments and want to earn rewards for their purchases. With its no preset spending limit, the option to earn 1.5% cash back, and flexible payment terms, this card provides significant advantages for business owners. The added protections, employee card options, and the lack of foreign transaction fees also make it an attractive option for international business owners.

If your business experiences fluctuating expenses or if you simply want a rewards card with generous cash back on every purchase, the Plum Card® is certainly worth considering. With the right financial management, you can use this card to streamline your expenses and earn rewards that contribute to your bottom line.