Review of the Blue Cash® for Business Credit Card

Summary - The Blue Cash For Business Credit Card from American Express is a tiered cash back business credit card that might appeal to certain business owners. Let's have a look at the rebate formula.

Cash Rebate Formula - The Blue Cash for Business Credit Card allows the small business owner to earn cash rebate from their business spending. It has a tiered rebate formula. For the first $7,500 in annual spending, you earn 1% when you use your card to buy from OPENSAVINGS participants and 0.5% rebates on other purchases. For annual expenditures between $7,500 and $15,000, you earn 5% rebates on any purchase you make with American Express OPENSavings merchant partners and 2.5% on other purchase. Once you exceed $15,000 in annual spending, you will earn 2% rebates with OPENSavings merchants and 1% rebates with other purchases. You can earn unlimited rebates.

OPENSavings merchants include AT&T, Expensable, Fedex, Hertz, subscription to USA Today and 1800-Flowers.com.

Fees and APR - There is no annual fee for the Blue Cash for Business credit card. You get a 0% apr on purchases for six months. This will be useful for those who wish to make some capital expenditure and need some credit lines. If you transfer you balance, the apr will be 7.99% for the life of the transfer. The apr ranges from prime rate plus 2.99%, 4.99%, 6.99% or 9.99%. The average daily balance method (including new purchase) is used to calculate monthly balances. Unlike most credit cards, the grace period given is 25 days versus 20 days.

Other Benefits - The Blue Cash for Business Credit Card also gives cardholders the following benefits.

1. Purchase Protection Plan - under this plan, you can return any purchase you make if it is accidentically damaged within 90 days.

2. Travel Insurance - American Express provides accidental travel insurance for all cardholders.

3. Online Management - You can manage your account with Summary of Accounts and track charges with Expense Management Reports.

4. Online Business Community - Allows you to chat, pose questions, get insights from other small business owners, and attract new business.

5. Seek Business Advice - You can ask an expert a question, use an online tool, and read articles by other business owners.

Blue Cash For Business Peer Comparison

The Blue Cash For Business is one of the rare cards which has a tiered formula. That in itself already a point against this card. The most natural comparison will be with the SimplyCash Business Card also from Amex. It is one of the better cash back business credit cards around so this will be a good test for the Blue Cash.

Against the SimplyCash - Unlike the Blue Cash, the SimplyCash Business Card has a straight non-tiered formula. You will earn 5% on wirelss business expenses, office supplies and equipement and 3% on gasoline (for up tp $12,000 in annual gasoline spend). You can also earn anywhere from 3% to 10% on purchases made with OPEN merchant partners. So in terms of earning rebates, the SimplyCash beats out the Blue Cash for Business.

Vs Costco Business Card - Amex also has the Costco Business Card which pays 4% rebates on gasoline (for up to $6,000 in annual gas spending), 3% on restaurant expenses and 2% on travel. The Costco Amex is not part of OPEN, so cardholders do not get discounts with their merchants.

Blue Cash For Business or Another Card?

Verdict - The Blue Cash for Business credit card will apeal to certain folks who shop a lot with OPEN merchants. However, the tier system means that you have got spend quite a bit to earn those 5% rebates.Having said that, this is the only card we know that allows you to earn 2.5% rebates on "regular purchases" (within the tier). You should also consider other cards available as most do not have any tiers and you could potentially earn more rebates with these other cards.

Update - Amex is no longer offering this card. Their main cash back business card is the SimplyCash Business Card and we suggest you take a good look at that card.

Positives

Earn up to 5% rebates from OPENSaings merchants

Earn up to 2.5% rebates on "other purchases"

Earn unlimited rebates

No annual or additional card fee

0% apr on purchases for 6 months

Blue Cash for Business Credit Card
Rebate Formula
Rebate Percentages	Earn up to 5% rebates on "OPENSavings purchases" Earn up to 2.5% on "other purchases" Earn 2% and 1% respectively once annual spending exceeds $15,000
Caps on Rebates	Earn unlimited rebates
Other Benefits
Year-end account summary 24 hour customer service Online fraud protection Return Protection Purchase protection plan
Cost/Fees/Interest rates
Introductory rate	0% introductory APR on purchases for 6 months Fixed APR of 7.99% on balance transfers upon application throughout life of initial balance transfer
Annual Fees	No annual fee
Purchase APR	Prime Rate plus 2.99%, 4.99%, 6.99% or 9.99%
Cash Advance APR	Prime Rate plus 14.99%
Penalty/Default Rate APR	Prime Rate plus 15.99% 21.99% for serious default
Min Finance Charge	$0.50
Grace Period	25 days
Balance Calculation Method	Average Daily Balance (including new purchases)
Balance Transfer Fee	No balance transfer fee for introductory offer. Balance transfer fee may apply for future balance transfers
Cash Advance fee	3% min $5.00
Over-the-credit-limit fee	$35.00
Late Payment fee	$19.00 - up to $400 $38.00 - $400 or greater

Apply for the Blue Cash® for Business Credit Card