The Blue Business® Plus Credit Card from American Express: A Comprehensive Guide
In the competitive landscape of business credit cards, the Blue Business® Plus Credit Card from American Express stands out as a compelling option for small business owners. This comprehensive guide will delve into the card's features, benefits, and potential drawbacks to help you determine if it's the right fit for your business needs.
Understanding the Basics
The Blue Business® Plus Credit Card is designed with simplicity and value in mind. As a no-annual-fee card, it offers an accessible entry point into the world of business rewards credit cards. Its primary appeal lies in its straightforward rewards structure: cardholders earn 2X Membership Rewards points on the first $50,000 in purchases each year, with 1X points on all subsequent spending.
This uncomplicated approach to rewards can be particularly attractive to small business owners who prefer not to juggle multiple cards or track rotating categories. The card also provides access to the renowned American Express Membership Rewards program, known for its flexibility and valuable redemption options.
Diving into the Rewards Structure
The cornerstone of the Blue Business® Plus Card's appeal is its rewards program. Let's break it down in more detail:
2X Points on All Purchases (Up to $50,000 Annually)
This feature is where the card truly shines. Unlike many business cards that offer bonus points only in specific categories, the Blue Business® Plus provides double points on every purchase, regardless of the merchant or type of expense. This can be incredibly valuable for businesses with diverse spending patterns or those that don't align well with typical bonus categories.
For example, if your business spends heavily on advertising, software subscriptions, or other services that often fall outside bonus categories on other cards, the Blue Business® Plus ensures you're still earning accelerated rewards on these expenses.
1X Points After $50,000
While the 2X rewards rate is capped at $50,000 in annual spending, you'll continue to earn 1 point per dollar on all purchases beyond this threshold. This ensures that even high-spending businesses can continue to accumulate rewards, albeit at a reduced rate.
Membership Rewards Program
The points earned with the Blue Business® Plus are part of the American Express Membership Rewards program. This program is renowned for its flexibility, offering a wide array of redemption options:
- Travel bookings through Amex Travel
- Point transfers to airline and hotel partners
- Statement credits
- Gift cards
- Online shopping
The ability to transfer points to travel partners is particularly valuable, as it can often yield a higher per-point value compared to other redemption methods. Savvy cardholders can potentially get 2 cents or more per point when transferring to airlines for premium cabin redemptions, effectively doubling the card's base earning rate.
Additional Card Benefits
While the rewards structure is the primary draw, the Blue Business® Plus offers several other features that enhance its value proposition:
Introductory 0% APR Offer
New cardholders can benefit from a 0% introductory APR on purchases for the first 12 months (after which a variable APR of 18.49% – 26.49% applies). This can be a significant advantage for businesses looking to finance large purchases or manage cash flow during their early stages.
Expanded Buying Power
This unique feature allows cardholders to spend beyond their credit limit in certain situations. The amount of additional spending allowed adjusts based on factors such as card use, payment history, and credit record. This flexibility can be crucial for businesses dealing with unexpected expenses or seasonal fluctuations in cash flow.
Employee Cards at No Additional Cost
Adding employee cards to the account comes at no extra charge. This can help businesses streamline expense management and earn rewards faster, all while maintaining control over employee spending.
Account Manager Feature
Business owners can designate an account manager to handle various aspects of the credit card account, offering an additional layer of convenience and delegation for busy entrepreneurs.
QuickBooks Integration
For businesses using QuickBooks for accounting, the ability to easily sync transactions can be a significant time-saver and reduce the potential for errors in expense tracking.
Potential Drawbacks to Consider
While the Blue Business® Plus offers numerous benefits, it's important to consider potential limitations:
$50,000 Cap on 2X Rewards
For businesses with higher annual expenses, the $50,000 threshold on 2X points can be restrictive. After reaching this cap, the effective rewards rate drops significantly.
Lack of Welcome Bonus
Unlike many competing business cards, the Blue Business® Plus typically doesn't offer a welcome bonus for new cardholders. This means missing out on the opportunity to earn a large chunk of points upfront, which can be a significant factor for some businesses.
Foreign Transaction Fees
With a 2.7% foreign transaction fee, this card isn't ideal for businesses that frequently make international purchases or travel abroad extensively.
Limited Travel Perks
While the Membership Rewards program offers excellent travel redemption options, the card itself doesn't come with many travel-specific benefits such as airport lounge access, travel insurance, or credits for Global Entry/TSA PreCheck.
Who Should Consider the Blue Business® Plus?
Given its features and limitations, the Blue Business® Plus is particularly well-suited for certain types of business owners:
- Small to medium-sized businesses with annual credit card spending under $50,000
- Entrepreneurs who value simplicity in their credit card rewards
- Business owners new to rewards credit cards or those building business credit
- Companies with diverse spending patterns that don't align well with category-specific bonus cards
- Businesses that can benefit from the introductory 0% APR offer for financing purchases
Additionally, it can be an excellent complementary card for those who already have personal American Express cards earning Membership Rewards points, as it allows for pooling of business and personal rewards.
Maximizing Value with the Blue Business® Plus
To get the most out of this card, consider implementing these strategies:
- Use it as your primary business card for all purchases up to the $50,000 annual cap on 2X points.
- Take advantage of Amex Offers, which provide statement credits or bonus points for shopping with specific merchants.
- Explore high-value redemption options, particularly through airline and hotel transfer partners, to maximize the value of your Membership Rewards points.
- Combine the Blue Business® Plus with other American Express cards to create a more comprehensive rewards strategy. For example, pairing it with a card that offers category bonuses can help you earn even more points in specific spending areas.
- Utilize the introductory 0% APR offer strategically for large purchases or to manage cash flow during the first year of card membership.
Comparing to Other Business Cards
To put the Blue Business® Plus in context, it's helpful to compare it to some popular alternatives:
Chase Ink Business Unlimited®
Both cards offer a no-annual-fee option with a flat-rate rewards structure. However, the Ink Business Unlimited offers 1.5% cash back on all purchases with no cap, compared to the Blue Business® Plus's 2X points up to $50,000. The Chase card typically includes a welcome bonus and is part of the Chase Ultimate Rewards program, which has its own set of transfer partners and redemption options.
Capital One Spark Cash Plus
This card offers a flat 2% cash back on all purchases with no cap, making it potentially more rewarding for businesses with high annual spending. However, it comes with a $150 annual fee and is a charge card, requiring the balance to be paid in full each month. It also typically offers a welcome bonus and an annual bonus for high spenders.
American Express Business Gold Card
For businesses willing to pay a higher annual fee ($295), the Business Gold Card offers 4X points in the top two spending categories each month (from a list of six options). It also typically includes a welcome bonus and more premium travel benefits. This card might be more suitable for businesses with higher expenses or those that spend heavily in specific categories.
Real-World Application: A Case Study
To illustrate how the Blue Business® Plus might work in practice, let's consider a hypothetical small business owner, Sarah, who runs a graphic design studio:
Sarah's business has an annual credit card spending of $40,000, primarily distributed across software subscriptions, office supplies, and client meals. With the Blue Business® Plus Card, Sarah would earn 80,000 Membership Rewards points annually (2X on $40,000) without having to track specific categories or pay an annual fee.
The card's intro APR offer allows Sarah to finance a new computer system interest-free for 12 months, helping her manage cash flow as she invests in her business. The simplicity of the rewards structure means she can focus on her work rather than optimizing her credit card strategy.
In comparison, a category-bonus card like the Amex Business Gold might earn Sarah more points in specific categories but would require her to pay a $295 annual fee and regularly check which categories are earning 4X points. For Sarah's spending level and diverse expenses, the Blue Business® Plus aligns well with her needs.
Expert Tips for Cardholders
To make the most of your Blue Business® Plus Card, consider these expert recommendations:
- Set up account alerts to stay on top of your spending and avoid missed payments.
- Use the Expanded Buying Power feature judiciously, remembering that it's not a traditional credit line increase and should be used only for short-term needs you can quickly repay.
- Explore additional American Express business services, such as virtual payment tools, working capital terms, and business insights.
- Strategically add employee cards to help you earn points faster while maintaining control over business spending.
- Regularly review your reward redemptions, as point values can change over time. Ensure you're still getting the best value for your Membership Rewards points.
Frequently Asked Questions
To address some common queries about the Blue Business® Plus Card:
Q: Can new businesses qualify for this card?
A: Yes, it's possible. American Express considers personal credit history for business card applications, but you may need to provide additional documentation about your business plans.
Q: How does the Expanded Buying Power feature work?
A: This feature allows spending above your credit limit in certain situations. The additional spending amount adjusts based on your card use, payment history, credit record, and other factors.
Q: Can points be transferred to airline miles?
A: Yes, Membership Rewards points can be transferred to various airline and hotel partners, often at a 1:1 ratio.
Q: Is this card suitable for international business travel?
A: While it's great for earning points on travel bookings, the 2.7% foreign transaction fee makes it less ideal for use abroad. Consider pairing it with a no-foreign-transaction-fee card for international trips.
Q: How does it compare to cash back business cards?
A: The value comparison depends on how you use your rewards. If you can maximize Membership Rewards points through strategic redemptions, particularly for travel, you may get more value than a typical 2% cash back card. However, if you prefer the simplicity of cash back, a card like the Capital One Spark Cash Plus might be a better fit.
Conclusion: Is the Blue Business® Plus Right for Your Business?
The Blue Business® Plus Credit Card from American Express offers a compelling package for many small business owners. Its straightforward 2X points on all purchases (up to $50,000 annually), coupled with no annual fee, makes it an attractive option for those with moderate business expenses who value simplicity in their credit card rewards.
The card is particularly well-suited for businesses that:
- Have annual credit card spending under $50,000
- Appreciate the flexibility of Membership Rewards points
- Don't want to manage multiple cards or track bonus categories
- Can benefit from the introductory 0% APR offer
However, it may not be the best choice for high-spending businesses, those who prioritize travel perks, or entrepreneurs looking for a large welcome bonus. In these cases, a premium business card or one with category bonuses might be more suitable.
Ultimately, the Blue Business® Plus serves as an excellent foundation for a business credit card strategy. Its no-annual-fee structure means there's little risk in trying it out, and for many small business owners, it could become an invaluable tool for earning rewards on everyday business expenses.
Remember, the key to maximizing any credit card's value lies in aligning it with your specific business needs and spending patterns. By understanding the Blue Business® Plus Card's strengths and limitations, you can make an informed decision about whether it deserves a place in your business wallet. As with any financial decision, consider your unique circumstances and consult with a financial advisor if needed to ensure this card aligns with your overall business strategy and goals.