For many business owners, choosing the right credit card is crucial for managing company expenses and maximizing rewards. The American Express Business Gold Card, with its substantial annual fee of $375, offers significant benefits and rewards.
Welcome Bonus
The Business Gold Card features a robust welcome offer: 70,000 points after spending $10,000 in the first three months. This can be a high threshold for some smaller businesses, but for those already spending this amount, the bonus points equate to approximately $1,400 when valued at 2 cents per point (according to The Points Guy).
Occasionally, Amex also offers enhanced bonuses, such as 150,000 points for the same spending threshold, providing even greater initial value.
Earning Back the Annual Fee
Monthly Credits
- General Spend: Earn a $20 monthly statement credit for purchases at select businesses like FedEx, GrubHub, and office supply stores, totaling $240 annually.
- Walmart Plus Membership: Enjoy a monthly statement credit of $12.95 for Walmart Plus, covering the cost of membership and contributing an additional $155.40 per year to offsetting the annual fee.
If utilized fully, these credits can total $395.40 annually, which alone more than covers the card’s annual fee.
Points Earning Potential
Reward Structure
- 4X Points: Earn four points per dollar on the top two spending categories each billing cycle, up to $150,000 per year, from six possible categories including advertising, software subscriptions, and more.
- 3X Points: Direct bookings for flights and prepaid hotels through AmexTravel.com also earn three points per dollar.
- 1X Points: All other purchases earn one point per dollar.
This rewards structure is especially beneficial for businesses with high expenditures in the eligible categories.
Real-World Application
Consider a business spending around $36,000 annually on advertising. At 4 points per dollar, this equates to 144,000 points annually. Valuing these points at 2 cents each gives you $2,880 worth of travel or other rewards. If your spending approaches the $150,000 cap in the 4X categories, the potential value climbs to $12,000 worth of points annually, far surpassing the cost of the card.
Calculating Break-Even Spending
To determine if the card is financially beneficial for you, subtract the value of the statement credits from the annual fee. Then, estimate your potential earnings from the points:
- 2 Cents Per Point: You need to spend at least $800 monthly in the 4X categories to break even.
- 1 Cent Per Point: If you primarily redeem through the Amex travel portal at a lower value, your break-even monthly spending doubles to $1,600.
Conclusion
The American Express Business Gold Card can be a valuable tool for businesses that spend heavily in the card's rewarded categories and can fully utilize the monthly credits. By calculating your expected spending and rewards, you can determine whether the $375 annual fee is a worthwhile investment for your business.
If you want to learn more about the best first business credit card or examine other options, check out the articles below:
- Best 1st Business Credit Card 2024
- Bluevine Business Checking Account Review 2024
- American Express Business Checking Account 2024
- American Express Blue Business Plus Review 2024
- Bank of America Business Banking Review 2024
Frequently Asked Questions (FAQs)
What are the main benefits of the American Express Business Gold Card?
The American Express Business Gold Card offers significant rewards, including a welcome bonus of 70,000 points after spending $10,000 in the first three months, 4X points on the top two spending categories each billing cycle, and various monthly credits that can offset the card’s $375 annual fee.
How can I maximize the welcome bonus on the Business Gold Card?
To maximize the welcome bonus of 70,000 points, you need to spend $10,000 within the first three months. This bonus can be especially valuable for businesses that already have high monthly expenses, translating to approximately $1,400 in rewards when points are valued at 2 cents each.
What monthly credits does the Business Gold Card offer to offset the annual fee?
The Business Gold Card offers $20 monthly statement credits for purchases at select businesses and a $12.95 monthly credit for Walmart Plus membership. These credits can total $395.40 annually, more than covering the $375 annual fee if fully utilized.
How does the points earning structure work on the Business Gold Card?
The card earns 4X points on the top two spending categories each billing cycle, up to $150,000 annually, including categories like advertising and software subscriptions. It also offers 3X points on flights and prepaid hotels booked through AmexTravel.com and 1X points on all other purchases.
Is the American Express Business Gold Card worth the $375 annual fee for my business?
The card can be worth the $375 annual fee if your business spends heavily in the 4X categories and you can fully utilize the monthly credits. Calculating your expected points earnings and the value of the statement credits will help determine if the card is a good financial fit for your business.