American Express (American Express is a Cardratings advertiser) has forged its brand identity on catering to small businesses, with services like American Express OPEN and its accompanying OPEN Forum® filled with advice, tips and tricks for entrepreneurs.
The SimplyCash® Plus Business Credit Card from American Express, a cash back business card, extends this offering. The card allows small business owners to get money back for every dollar they spend, with varying levels of cash back based on the category. You get rewarded for your spending, so it's essentially another type of business deduction.
SimplyCash® Plus Business Credit Card from American Express best features:
As its name implies, the SimplyCash® Plus Business Credit Card from American Express's rewards system is pretty straightforward: Get 5 percent cash back on $50,000 spent at office supply stores and on wireless phone services purchased directly from U.S. service providers as well as 3 percent cash back on a category of your choice. The two categories for 5 percent cash back are typically the largest business expense, so entrepreneurs with an office or remote-based business can offset a significant part of their overhead.
Cardholders can also earn 3 percent cash back on up to $50,000 spent in a category of their choice each year. The category options include airfare; hotel stays; car rentals from select companies; purchases at U.S. gas stations; purchases at U.S. restaurants; purchases of advertising with select media; U.S. shipping purchases; and U.S. computer hardware, software and cloud computing purchases made directly from select providers, a category American Express recently added. New cardholders select their category within two months of becoming card members and then can change that category during an annual selection period each year.
You can also take advantage of the special offer of 15 months no interest on purchases (then, 14.49% - 21.49% Variable).
With the SimplyCash® Plus Business Credit Card from American Express, you also get access to American Express® Open benefits, such as access to Open Forum®; Receipt Match, a feature that lets you upload business receipts and track transactions; and OPEN Savings®, which provides additional membership rewards points for every dollar spent or a 5 percent discount statement credit for eligible purchases made at participating businesses (Hertz, HP and Fedex are among them).
One of the best features of the SimplyCash® Plus Business Credit Card from American Express is that cardholders can spend above their credit limit and get cash back on these purchases. There's no over-limit fee, but you do have to pay the amount you've charged above your credit limit in full each month. Also keep in mind that American Express® will adjust the amount you can spend above your credit limit based on your card use, payment history and credit record.
Spending limits: With the SimplyCash® Plus Business Credit Card from American Express, you only get 5 percent and 3 percent cash back on your first $50,000 in purchases. After that, the rate is 1 percent. This is a drawback for mid-sized businesses that spend above this threshold and want to maximize their rewards.
Category selection: Read the fine print and you'll see that there's not as much flexibility with category selection. For the 3 percent rebate category, you must choose from the previously mentioned list and make your selection within the first two months of opening your account. Plus, you can only change your selection once in a calendar year. If you forget to make a selection, the 3 percent rebate will be applied to gas purchases – not useful if you operate a home-based business that requires minimal travel.
Foreign transaction fee: The card also charges foreign transaction fees - not optimal if you travel a lot internationally for business.
Ink Business Preferred℠ Credit Card has a better intro offer, through which you can earn 80,000 bonus points after spending $5,000 within the first three months. And Chase Ink Business PreferredSM cardholders can earn 3 points per $1 in several business categories, including shipping, some online advertising, travel and more, up to $150,000 in combined spending each calendar year, giving it a slight edge. Unlike SimplyCash® Plus, Chase Ink Business PreferredSM has an annual fee of $95 and a $0 foreign transaction fee, making it the better option for international business travelers.
When it comes to rewards, the SimplyCash® Plus Business Credit Card from American Express offers opportunities for higher gains, but the Capital One® Spark® Cash for Business offers consistency and simplicity, which, in the end, could lead to higher rewards earned depending on the business. And higher rewards is a good thing, since the Capital One® Spark® Cash for Business card does charge an annual fee – $0 intro for first year; $95 after that – so you want to make sure your rewards will offset the cost of carrying the card.
About those rewards... with the Capital One® Spark® Cash for Business card, you'll earn 2 percent back on ALL your purchases; that means you can search out the best deals from an online retailer and earn the same number of rewards back that you would earn by going to the office supply chain store down the street. There are no spending caps to worry about and your rewards won't expire for as long as you keep your account open.
Plus, right now with the Capital One® Spark® Cash for Business card you can earn a one-time $500 cash bonus when you spend $4,500 in the first three months of opening your account. There's currently no bonus cash back offer with the SimplyCash® Plus Business Credit Card from American Express, but you do have those 15 months of no interest on purchases (then, 14.49% - 21.49% Variable).
Ultimately, this decision should come down to understanding where your business spends the bulk of its money and whether having higher rewards earnings in particular categories would benefit you more than have a flat earning rate across all categories.
Business owners who spend under $50,000 a year on office supplies, associated services and domestic travel. If you often travel internationally for business, this card is a no-go since foreign transaction fees will eat into your rewards.
To see the SimplyCash® Plus Business Credit Card from American Express rates and fees, please visit this link: See Rates and Fees.