Blue Business Cash is the new card from American Express which is replacing Simply Cash Plus Business card. Simply Cash Plus Business had attractive rewards based on category whereas the new Blue Business Cash gives flat cashback on all purchases.
How do the Blue Business Cash rewards work?
If you are applying for Blue Business Cash and are approved, you immediately start to earn 2% cashback on the things you buy for your business. The 2% cash back rewards apply to purchases up to $50,000 per year. If your purchases cross this limit before the end of the year, then you continue to earn rewards but at a lower cashback rate of 1%.
The cashback is automatically credited to your account as a statement credit. The rewards are not credited if the minimum payment is not made before the closing date due or if your card is canceled.
Does Blue Business Cash and Blue Business Plus offer similar rewards?
Blue Business Cash and Blue Business Plus have a similar reward structure but they are not the same. You earn 2% membership rewards points with Blue Business Plus. Whereas, Blue Business Cash offers 2% cashback on all purchases up to the first $50,000.
Cost of card membership
An annual fee can set you back by a few dollars each year. Spark Cash from Capital One offers similar cash back rewards but has an annual fee of $95 which is waived as part of the welcome offer. However, from the second year you are charged a fee for the card.
From the get-go, there is no annual fee for the Blue Business Cash card. The amount you save on card membership can be put to use for business purchases.
Extended Credit Limit
Blue Business Cash gives you some room to purchase beyond your credit limit without being charged an over-limit fee. The extended credit limit that becomes available to you is determined based on the card usage, payment history, financial resources available to you and credit history. You must repay the amount above your credit limit as it will be due in full each month.
If you have large business purchases planned then you can benefit from the welcome APR offer that is currently available to new cardholders. You can get a 0% APR on purchases and balance transfers for a time frame of twelve months thereafter the variable APR rates will be charged to your account. You can utilize the one year to plan and pay back the amount without incurring interest. While the 12 months duration may seem short but Blue Business Cash is on par with other small business cards introductory APR offers.
Employee Cards at no extra cost
You can get an additional employee card at zero cost. The card gives you a chance to authorize your employees and the purchases they make using their cards also earn you cash back rewards. You can set a spending limit and also track the expenses by login to your Amex account.
Tools for account management
To understand the expenses that incur in your business you can use the Spend Manager, Quickbooks and Year-end summary provided by Amex. You can use Vendor Pay by Bill.com to make payments periodically. However, you have to enroll for this benefit and certain fees are applicable. Click here to know more about Vendor Pay.
Travel and Protection Benefits
- Apart from having access to account management tools your business also gets different protection benefits such as an additional year of extended warranty for eligible items which have a manufacturer’s warranty between one to five years.
- Purchase Protection coverage is available for 120 days wherein eligible items if damaged or lost can be eligible for reimbursement or repair or replacement. In certain states, the coverage is limited to 90 days. The eligible items are covered maximum up to $1,000 per claim and a maximum of $50,000 per account, each year.
- Your rental vehicle is protected against damage and theft for a maximum period of 30 days. To be eligible for car rental insurance you must decline the insurance offered by the rental company. The payment for the rental should be made using your Amex card and the document must show the name of the cardholder as the renter. All types of vehicles are not covered under this benefit. The benefit is up to a maximum of $75,000 per rental agreement
- Global Assist Hotline enables you to find assistance while traveling in case of loss and replacement of passport or translation services required or in need of a medical or legal referral.
- Dispute Resolution saves you against unauthorized transactions which are made using your Blue Business Cash Card. This service is available to cardholders 365 days and 24/7.
Drawbacks of Blue Business Cash
This card is not the best if you are traveling outside the U.S. It has a 2.7% foreign transaction charge on every purchase you make abroad. Cards such as Chase Ink Business Cash and Spark Cash for Business provide an early spend bonus to new account holders. You miss out on that when you select Blue Business Cash card.
Blue Business Cash is a modest cashback card without any category restrictions. If your business purchases fall below $50,000 per year and you prefer cash back over other forms of reward then this would be a good fit for your business.
You can also view some of the other comparable business cards such as Spark Cash for Business and Chase Ink Business Cash. If you would like an alternate card within the American Express family than Blue Business Plus is worth exploring.