American Express Business Platinum: Is the Annual Fee Worth It?
The Business Platinum Card® from American Express OPEN is iconic, but comes with a staggering annual fee of $450. While most business owners would cringe at the thought of paying that much, we don’t think you can write off The Business Platinum Card® from American Express OPEN that easily. It has a number of travel-related perks that make red-eyes a bit more tolerable and a collection of other benefits like concierge service and warranty extensions. Still,The Business Platinum Card® from American Express OPEN isn’t for every business. We believe there are scenarios under which the fee is resoundingly worth it, and scenarios under which other cards are better.
Perks are second to none
The Business Platinum Card® from American Express OPEN makes up for its $450 annual fee, and then some, with an above-and-beyond set of perks:
- No foreign transaction fee – Most banks levy a 3% surcharge on overseas transactions; American Express usually charges 2.7%. However, this card waives the fee for foreign purchases. It takes about $15,000 in purchases to save $450. There are other credit cards with no foreign transaction fee, but most of them are personal cards.
- Airport lounge access (with the exception of Continental and United after September 30, 2011) – Full access to the 1,000+ airport lounges on the Priority Pass network would normally cost you $399 per year. Alternatively, you could pay $99 per year and $27 per visit if you don’t use the service very often. The Business Platinum Card® from American Express OPEN gives you unlimited access to all of these lounges. Furthermore, you can bring up to 2 companions into AA, Delta, and US Airways lounges for free, a privilege that usually costs $27 per visitor.
- $200 airport incidentals credit – You receive a $200 credit towards your favorite airline (you must pre-register that airline with American Express) covering miscellaneous fees like inflight meals, change fees or bag fees.
- Hotel benefits: American Express maintains relationships with over 600 hotels worldwide. Stay at them and you’ll receive free room upgrades, breakfast for two, and hotel-specific perks (the example listed is a massage).
There are also a couple perks that used to be exclusive to American Express, but are now common on mid- to high-end Visas and MasterCards. Concierge service, for example, is available for all Visa Signatures including the no-fee Chase Freedom.
- Purchase and return protection– Though offered on most cards, anecdotally, The Business Platinum Card® from American Express OPEN offers greater coverage. One The Business Platinum Card® from American Express OPEN cardholder lost a diamond earring within 90 days of purchase, and got a several-thousand dollar reimbursement from American Express. This extensive coverage is only available on Platinum-level cards.
- Extended warranty – The card automatically extends the warranty on your purchases for up to one year.
- Concierge service– This Valentine’s Day, a member of Team NerdWallet forgot to get flowers for his girl. Visa’s concierge came through. American Express’s didn’t.
The Business Platinum Card® from American Express OPEN rewards: great flexibility, mediocre rate
You earn 1 American Express Membership Rewards First Point per $1 spent. There are three tiers of Membership Rewards Points: Membership Rewards Express (earned with the American Express credit cards), Membership Rewards (American Express Green and Gold), and Membership Rewards First (Platinum and Centurion).
While the Membership Rewards points are around the middle of the pack in terms of ease of redemption, and forgo the expiration dates and high accumulation thresholds that plague ThankYou Points and Bank of America® Worldpoints, we think that the Starwood Preferred Guest® Credit Card from American Express actually offers more flexibility. That said, of course, the Starwood Preferred Guest® Credit Card from American Express is most valuable if you’re a frequent guest, and rarely worthwhile otherwise.
We believe The Business Platinum Card® from American Express OPEN’s Membership First points are worth about 1 cent each, putting it on a level with all the other 1% rewards cards, on a high level. However, unlike most other points programs, you can transfer these points to many airline and hotel programs as needed, to top off point balances.
When not to get The Business Platinum Card® from American Express OPEN
I’m using my card to finance my business: If you need working capital financing, The Business Platinum Card® from American Express OPEN is definitely not the card for you. Late payments incur a penalty of $35 or 2.99% of the past due amount, whichever is greater. This adds up to a staggeringly high way to finance yourself, compared to a bank loan or a normal credit card (this card is a charge card, which must be paid off every month).
I don’t fly often: Though the travel perks are unparalleled, The Business Platinum Card® from American Express OPEN isn’t the best choice for every business. In particular, those who aren’t frequent international travel won’t get all that much out of the card. In that case, you may be better off with a straight-up rewards credit card, since American Express’s cards are generally aimed at big spenders and frequent flyers. Among the best values are the Ink Cash® Business Credit Card and the Capital One® Spark® Cash for Business.