American Express Blue Business Plus-2020 Deep Dive
The 2019 American Express Blue Business Plus Card. It’s a clear, plastic card with huge earning potential
To the Point
The American Express Blue Business Plus Card is a very straight forward card that is often overlooked by business owners because it does not have a specific flashy spending category. We believe that’s exactly why this particular business card really out-shines other business cards. The Blue Business Plus Card, or “BBP”, has a simple reward earnings structure which fuels your business visions by earning 2x Membership Reward (MR) points on everyday purchases up to $50,000 with absolutely no category restrictions. If you happen to spend over $50k you will then earn 1x MR point per dollar spent. That means whether you are running ads on Facebook or purchasing office supplies, you will still be earning 2x MR points. Need to send your employees on a business trip? If you book their travel on the AmexTravel.com portal you will earn 1 additional multiplier MR point, making it 3x MR points earned as long as you’re under the $50k spend cap. Once you pass the cap, you will earn 2x MR points for purchases made through the AmexTravel.com portal. The Points Passport believes that the BBP is the simplest and most rewarding non-category specific spend business cards. Wait, it even gets better! How much is this card going to cost you? The BBP does not have an annual fee, so you can earn freely without the fees cutting into your rewards or your business expenses! Unfortunately, the BBP does not have a public sign up bonus, but if you use our referral link below to apply, you will receive a 10k sign up offer if you spend $3,000 in the first 3 months. Additionally, a great asset whether you are just starting out or have an established company, the BBP offers 0% introductory APR on purchases and balance transfers for 15 months. This huge perk makes the BBP absolutely perfect for a small businesses or a sole proprietor with start-up costs that they won't have to worry about paying interest on over the first year. If you were thinking of starting a business or running a side hustle but do not have the upfront money to fund it, the BBP can be the solution to your problem!
Value Proposition
At the Points Passport we like to make the value proposition of the cards we review easy to understand. In order to do that we break down the value into two parts: the initial sign up and the sustaining costs that occur every year after. In the BBP's case, there is no annual fee, so at no point will this card add any cost to your wallet. Even better, there is no interest on your balance in the first 15 months. Due to typical high interest on credit cards, we do not recommend spending more than you can afford; but, if you can park your cash in a high yield savings account and make 2-3% interest on it while spending on your BBP and not accrue any interest payments, why not? Then, at the end of the 15 months, you can pay the card off in full and have a little extra due to the 2-3% interest you gained in savings. This being said, we do not recommend concentrating on earning points and miles if you cannot pay off your credit cards in full each month.
Phase 1 - The Sign Up Offer
There is no public sign up offer, but with our current referral sign up offer being 10,000 MR (link below), and the value of an MR point being up to $0.02/point, the sign up value is as follows:
10,000 Membership Reward Sign Up Offer x $0.02 = $200
First Year Benefits:
$0 Annual Fee
0% APR for the first 15 months
Sign Up Bonus + Benefits - Annual Fee = Net Cost/Value
10k MR offer: $200 sign up bonus + 0% APR/15 months - $0 annual fee = $200+* Net Value
*: The 0% APR can be of massive value depending on your spend and how pricey your other potential business cards APR may have been. For example, if you’re able to borrow money at 5% interest and you borrow $10,000, then you’d pay $500/year in interest. When compared to credit card APRs, even at a “low” 15%, the same $10,000 borrowed could potentially save you $1,500 in the first year. Of course, this analysis will vary from person to person, and business to business based on many factors beyond the scope of this article. We recommend you made the best decision for you and/or your business, based on your circumstances.
Phase 2 - After the Sign up Offer (Year 2+)
2nd Year Benefits:
$0 Annual Fee
0% APR for 3 more months
No equation is necessary here, the BBP is a free, no annual fee card. The BBP lets you spend for 15 months with 0% APR. Clean and simple! You don't have to worry about applying for costly loans and dealing with red tape. That can take time, and time is money; so that alone adds even more value to this business card.
Now, let's assume you plan to actually use this card for spend on your business each year. If you spend $100 a week, that's $5,200 a year. With the BBP you do not have to worry about spending categories because you get 2x MR on every purchase.
$5,200 x 2x MR points = 10,400 MR points.
Those 10,400 MR points are worth approximately $208. So updating our formula, we find:
Annual Benefits + Earned MR - Annual Fee = Net Value/Cost
$0 second year (and beyond) benefits + $208 in MR - $0 annual fee = $208 Net Value
Depending on your spending patterns and business needs you can end up earning much more due to the flexibility of the MR earning on the BBP. If you were to meet the $50,000 2x MR point cap during the year, that would accrue a whopping 100,000 MR points, valued at $2000 when fully optimized for redemption. With the BBP, you are getting approximately 4% back on spend with your first $50k in purchases, provided no travel is booked through the Amex Travel portal, as the travel portal earns an additional 1MR/$1, which is a total of 3x MRs. The potential is endless!
Benefits Deep Dive:
2x Membership Rewards Points on all purchases up to $50,000 each year. No category restrictions at all.
1x Membership Rewards Points on all purchases after $50,000 each year.
3x Membership Rewards Points on eligible purchases made on AmexTravel.com and 2x MR points after the $50k spend cap.
No Annual Fee
0% APR for the first 15 months
Expanded Buying Power: Spend above your credit limit, which gives you the freedom to tackle business needs as they come, automatically. No need to call to request a credit increase. *The amount you can spend in not unlimited, and is adjusted based on your payment history, credit record, financial resources, and various other factors.
Employee Cards: Issue up to 99 employee cards which can earn you MR points for no additional fee.
Spend Manager: This features helps you manage your card's expenses by allowing you to upload receipts and add notes on transactions via a computer or mobile device.
Account Manager: Designate an account manager to access and manage your business card account.
Connect to Quickbooks: Link your Amex account to Quickbooks software to stay organized by labeling and transferring your data from the Amex website directly to your QuickBooks’ account.
Extended Warranty: Shop with less worry knowing the manufacturer's warranty can be extended up to 2 additional years. Applies to warranties of 5 years or less that are eligible in the US. Exclusion may apply.
Purchase Protection: When something you buy breaks or is stolen, Amex has you covered! They will cover accidental damage or theft for up to 120 days from the moment you make the purchase. Exclusions may apply.
Amex Offers: Amex Offers can help your business save more money, resulting in more income on things you spend on anyway. Adding offers is quick and easy on the mobile app.
The Final Point
As you can see, the American Express Blue Business Plus Card really works for you and your business. With 2x MR earning capabilities on all purchases, this card can quickly become your star employee. Add the fact that this card costs you absolutely no annual fee to cut into your revenue, the Points Passport sees no reason a startup or small business owner wouldn't have this card in their wallet. If you spend any money on your business you will come out ahead. Also, the introductory 0% APR is perfect for those cumbersome start-up costs which you can pay down over time without having to pay interest to a bank for a loan or deal with other cards astronomical APR’s.. If you tend to use AmexTravel.com for your travel bookings for work, the BBP sweetens the rewards even more earning 3x MR. This brings some competition to the Chase Ink Business Unlimited card, which earns 1.5% back on the first $150,000 and offers a 0% APR on the first 12 month. In our opinion, the BBP wins over the Chase Business Unlimited card because of its 2x MR earning can be worth up to 4% back (2x MR x $0.02/MR = $0.04 or 4% equivalent) when fully optimized using our partner transfer strategies. Overall, the BPP really brings into perspective the net value, earning potential and lack of annual fee that the BBP has. The BBP really is perfect for any business because of the simple rewards structure. It does not matter what you are spending on, you will be rewarded.
The 2019 American Express Blue Business Plus Card