The Plum Card is a unique rewards card issued by American Express (NYSE:AXP) for established business owners: You can decide each month whether you want to get discounts for paying in full, or to defer your card payment. I find this innovative feature to be invaluable to business owners who are looking for extra ways to get “free money”. The American Express Plum Card is a charge card, but yet allows you to pay your bills in a more flexible way, and it also comes with many exclusive Amex cardholder benefits.

Below I’ll explain to you how the Plum Card from American Express OPEN works, its most appealing benefits, and tell you how we rate this business card.

Things We Like About This Card

No annual fee for the first year, which allows you to save $185.

If you pay in full within 10 days of your statement closing date, you will get a 1.5% discount of what you spent that month! This means that if your business spends, for example, $10,000 monthly, you will have an annual discount of $1,800 – not a small amount of savings. The more your business spends monthly, the more you will save. The discount will be earned as a statement credit, and that will be reflected on your next month’s billing statement.

Pay no interest at all. Since this is a charge card, not a credit card, you are required to pay your balance in full every month, hence there is never any interest to pay.

You have the option to defer payment without interest. If you choose to pay at least 10% of the current month’s spending and the entire amount of any previously deferred payment by your “Please Pay By Date” on your statement, then you are allowed to defer the other 90% till the following month. That means you can take up to 2 months to pay your balance in full. This unique feature allows for more flexibility when making payments, ensuring that you won’t be charged with any penalties or interest when your cash flow is tight.

Choose when your monthly billing cycle ends. This will allow you to choose your preferred billing date, which could be at the beginning, middle or end of the month, to suit your business needs.

Open Savings business discounts of 3% to 10% on brand-name partners. American Express OPEN cardmembers get automatic discounts on a variety of business expenses from retailers such as FedEx (NYSE:FDX), Hertz (NYSE:HTZ), OfficeMax (NYSE:OMX), hpdirect, Epson, airTran, Hyatt (H), Marriott (NYSE:MAR) and more. Simply pay with your Plum Card and the savings will be credited to your account automatically.

Get a $100 annual travel benefit if you pay for a qualifying vacation purchase of at least $3,000 through a participating American Express Travel Services in the U.S. with your Plum Card. Qualifying vacations include the purchase of a minimum of $3,000 on a vacation or cruise package through American Express Travel Services. Independent purchases of flights, hotels, etc and group bookings do not count. You will receive your $100 travel benefit as a statement credit.

No pre-set spending limit. As a charge card, it doesn’t have a pre-set spending limit. Your purchasing power will adjust with your use of the card, your payment history, credit record and other factors.

Travel accident insurance and roadside assistance. The roadside assistance offers you up to 4 service calls yearly which will help you if you have any trouble or problems on the road. It gives you $50 of coverage per service call, and coverage is applicable to the entire U.S., Canada, and Puerto Rico.

Car rental loss and damage insurance to ensure that you have a problem-free car rental experience when you pay with your Plum Card.

Purchase protection and extended warranty on eligible purchases made with your card. Purchase protection protects eligible purchases made with your card against accidental damage and theft for up to 90 days from the date of purchase. The free extended warranty extends the term of the original manufacturer’s warranty up to one more year on eligible purchases with warranties of five years or less that are eligible in the U.S.

Baggage insurance plan when you pay for your flights with your card.

Year-end summary. At the end of each year, to help you better organize your accounting, taxes and budgeting for the next year, you will receive an itemized report online or by mail if you wish so, of all your spending that current year, organized by month and spending category.

Our Least Favorite Things About This Card

$185 annual fee after the first year. The annual fee is waived for the first year, allowing you to save $185. After that, you’ll have to pay an annual fee of $185 – for the flexibility to defer payments or be rewarded for paying in full. The 1.5% discount you get on the first $12,334 you spent on your card will equal $185, which is your annual fee (1.5% of $12,334 = $185). A 1.5% discount on anything more than $12,334 will then be your real savings. So if you have an established business with a lot of business expenses, it pays to have this card since you will get a 1.5% discount on your spending just by paying in full each month.

Our Verdict: 4.4/5 Stars

The Plum Card from American Express OPEN is best for established business owners who want an American Express charge card that gives you flexibility when it comes to making your monthly payments. Each month, you can choose to either pay in full and be rewarded with a 1.5% discount on your spending, or to defer your payments interest-free. If your business has a positive cash flow, has a strong credit history, and is more than 2 years old, you are likely to be approved for this card. As mentioned earlier, the $185 annual fee is worth it if you have a lot of business expenses each month as you’ll be able to save a huge amount of money over the course of a year.

Considering all the American Express benefits this Plum Card has, along with the OPEN Savings program and the option to defer payments or be rewarded for paying in full, the American Express Plum Card is an excellent choice of card for established business owners who want an American Express card with flexibility and a special rewards option. Apply online and you will get a response within 60 seconds.

Click here to go to American Express official website to apply online for Plum Card from American Express OPEN now. You will get a decision for your online application within 60 seconds.

Would you prefer a business rewards credit card without an annual fee instead? Then apply for Ink Cash Business – $250 Bonus Cash Back (read our Chase Ink review), issued by JPMorgan Chase (NYSE:JPM).