American Express introduced a new metal payment card for business owners on Wednesday that comes with no preset spending limit and up to 5% cash back on some purchases.
The Graphite Card, which carries a $295 annual fee, is Amex’s first new business card in seven years.
The New York-based bank and card issuer is betting that a 2% rebate on business spending – and 5% for some travel expenses – will prove to be a powerful lure for entrepreneurs who may also want higher spending limits and flexible payment options.
“By combining unlimited 2% cash back with powerful spending capacity, the Graphite Card can help businesses fuel growth, improve cash flow management, and strengthen their bottom line,” Raymond Joabar, Amex’s group president for its global commercial services unit, said in a Wednesday press release.
Amex and large bank rivals such as JPMorgan Chase and Capital One Financial compete for business card customers along with fintechs such as Bill Holdings, Brex, Engine and Ramp.
Card network Visa has also been courting small and medium-sized businesses, competing with Amex in offering financing and other tools for smaller companies.
The new Amex card also offers a $2,400 annual statement credit for businesses that use Amex’s accounts payable automation platform, after $250,000 in eligible purchases per calendar year.
The 5% cash back for airline flights and prepaid hotel bookings applies to trips booked through American Express Travel. The card also lets businesses carry balances for more than a month, with interest.
Cardholders will earn the cash in the form of Amex “reward dollars,” which they can use as a statement credit or as payment for purchases at e-commerce juggernaut Amazon.com, with no minimum redemption amounts.
With the new card, Amex now has 14 business cards, including several with no annual fee and some co-branded with companies such as Amazon, the carrier Delta Air Lines and hotel chain Marriott International.
The new card also offers businesses an option to give employees virtual cards with adjustable spending limits, and five additional physical cards for $95 per year.
Last year, Amex introduced virtual card numbers and security codes for smaller business customers, enabling them to pay their suppliers without a physical credit card.
The last time Amex issued a new business card was in 2019 when it began offering the Blue Business Cash Card.
