American Express Introduces the Graphite™ Business Cash Unlimited Card

American Express has unveiled its new Graphite™ Business Cash Unlimited Card, which is designed with a simple approach in mind. The name suggests a level of exclusivity, reminiscent of traditional naming conventions in the industry. However, that sense of prestige relies heavily on the benefits it offers.

The card presents an unlimited 2% cash back on eligible purchases and 5% cash back on flights and prepaid hotels booked via American Express Travel Online. The annual fee sits at $295, categorizing it in the mid-range of business cards.

American Express aims to provide business owners an uncomplicated way to earn rewards on everyday expenses while also offering tools to manage cash flow. Still, in a saturated market, simplicity may struggle to make a significant impact.

Key Details of the Amex Graphite Card

• Annual fee: $295
• Welcome offer: Earn $1,500 in cash back (Reward Dollars) after spending $50,000 within the first six months of card membership.
• Profitability:
  • 2% cash back on all eligible purchases
  • 5% cash back on flights and prepaid hotels through Amex Travel
• Redemption options: Statement credit or Amazon purchase (1 cent per reward dollar)
• Employee card fees:
  • $95 per year for up to 5 metal cards ($95 each thereafter)
  • $0 for plastic employee cards
• No foreign transaction fees

A Simple Revenue Structure with Some Trade-offs

One of the main attractions of the Graphite card is its straightforward cash back model: a flat 2% on all eligible purchases without any earnings cap. While this sounds appealing, it’s worth noting that other business cards offer similar benefits with lower annual fees.

The card also allows for 5% cash back on travel booked through Amex Travel. This could be beneficial for companies with significant travel expenses, yet it restricts bookings to the American Express portal, which might not suit every business.

Additionally, some analyses have shown that prices for flights and hotels booked through Amex Travel are often higher than booking directly. This means the attractive cash back rates could be offset by increased costs.

Rewards are given as “rewards dollars,” which can be used for statement credits or at Amazon, simplifying the process but limiting flexibility compared to other card rewarding structures.

Benefits and Challenges

This card offers useful features expected at this price point, such as no foreign transaction fees and various coverage options. It has no preset spending limits, meaning your available credit can vary based on purchases, payments, and your credit history.

However, if you want to offset the annual fee, you’ll have a considerable hurdle to overcome. Cardholders can earn up to $2,400 in annual statement credits through the One AP Accounts Payable platform, but only if they spend $250,000 on it in a year—a tall order for many small businesses.

Similarly, the welcome offer requiring $50,000 in spending in six months is quite high compared to competing offers.

Comparisons with Competitors

The Graphite Card, with its $295 annual fee, enters a competitive segment. While it provides a clean and simple cash back structure, many competitors offer better value with fewer limitations. Some alternatives might offer similar cash back rates but with lower fees or more flexible benefits, such as points that can be transferred to travel partners.

Even among American Express’ offerings, some cards may align better with individual business goals, whether that’s in maximizing rewards or avoiding annual fees altogether.

Who Might Find This Card Useful?

The Graphite Card may not be suitable for all businesses. It could attract certain executives, particularly those already engaged in the American Express network, but many companies might find better options elsewhere if their spending or benefit needs differ.

Conclusion

The American Express Graphite Business Cash Unlimited Card aims to provide a straightforward and dependable way to earn cash back. However, it enters a market where simplicity is becoming less of a distinguishing factor.

While the 2% return rate and uncomplicated earnings structure may appeal to some, those factors don’t outweigh the $295 annual fee and limited flexibility, making it hard to endorse universally.

In a competitive landscape, particularly for a card with a name that suggests luxury at a mid-tier price point, it doesn’t necessarily excel against its counterparts. For companies that are already loyal to the Amex ecosystem, it might still hold some allure, but it may not stand out as the best choice for most.

Related: best business cashback credit cards