Small Business News

American Express Announces New Blue Business Cash Card

Over the past decade, credit card company American Express has worked to align themselves with small business owners. This includes founding the increasingly popular retail holiday Small Business Saturday, observed the weekend after Thanksgiving each year. Continuing that mission, this week the company announced the launch of a new small business credit card: the Blue Business Cash Card.

The Blue Business Cash Card’s biggest perk is that cardholders can earn 2% cash back on up to $50,000 in purchases a year. After that spending threshold is reached, business owners can continue to receive 1% back. Plus, unlike many personal credit cards, the Blue Business Cash Card automatically applies earned cash back to your monthly statement balance. Blue Business Cash also carries no annual fee and offers a 0% introductory APY for 12 months.

If this card sounds familiar it’s probably because it bears resemblance to AmEx’s Blue Business Plus. However that card allows business owners to accrue points while the new edition earns cash (hence the name). Meanwhile NerdWallet notes that the arrival of the Blue Business Cash Card corresponds to the discontinuation of the SimplyCash Plus Business Credit Card. American Express will no longer accept applications for that card, although current customers can continue using it with no changes to their benefits.

Prior to launching their new card, AmEx surveyed several business owners about their cash flow needs and what they’d want in a business credit card. Speaking to those results and the product that they bore, the company’s Executive Vice President of Global Commercial Services E-Bai Koo said, “We know that three-quarters of small business owners experience unexpected business costs on a monthly basis, but less than a quarter of them feel fully prepared to deal with those unexpected costs. We launched the Blue Business Cash Card to help alleviate some of the most common pain points of running a business so that business owners can concentrate on growing their business.”

In terms of how the Blue Business Cash Card stacks up to the competition, there are some pros and cons to consider. For example the Capital One Spark Cash for Business card also allows business owners to earn 2% on purchases but doesn’t cap that perk at $50,000 like the AmEx does. On the other hand that card does have a $95 annual fee, although it is waived for the first year.

Just like with consumer credit cards, small business credit cards can be both a blessing and a curse. When used properly, entrepreneurs can help manage their cash flow while also earning cash back or other rewards. However cardholders should be mindful of their card’s interest rate and ensure that they’re not putting their business at risk by taking on too much debt. With all that said, if you’re in the market for a small business credit card, the American Express Blue Business Cash Card may be a good option.