Is your business earning 1.5 frequent flyer points per dollar spent? If it isn’t, or if those points aren’t flexible and redeemable with up to 8 airline partners, now is the perfect time to switch. American Express launched their new Business Explorer credit card which is feature packed and has no points cap!
New business card applicants can now snap up a healthy 100,000 Amex Membership Reward points in the Gateway program which translates into 75,000 frequent flyer miles (Virgin, Singapore Airlines, Cathay Pacific, etc. etc.).
100,000 Bonus Points Offer Extended Until 2 July 2018
Unlike the non-business Amex Explorer (you can read the review on that card here), the Business Explorer doesn’t come with a $400 travel credit but has some unique benefits tailored to small and medium/large businesses. This business credit card lets you add up to 99 additional card holders at no extra cost which could skyrocket the point earning potential (use it for work-related expenses instead of reimbursing employees). On top of that, if your business expenditure is worth more than $100,000 annually, Amex will give you a bonus of 50,000 MRG points each year (when you meet the annual spend criteria).
American Express Business Explorer Quick Overview
- Sign Up Bonus – New American Express Card Members will receive an introductory 100,000 Membership Rewards Bonus Points – apply by 2 July 2018 and spend $3,000 in the first 3 months from the Card approval date. That’s enough for 4 return flights from Sydney to Melbourne).
- Loyalty Bonus – Get a 50,000 Membership Rewards loyalty bonus points when you spend $100,000 with 12 months from your Card approval date (and every year thereafter).
- Lounge Passes – Relax with 2 entries per calendar year to the American Express Lounge at Sydney International Airport T1 (and soon Melbourne International Airport).
- Loyalty program – Membership Rewards Gateway (MRG)
- Government Earn Rate – 0.5 MRG points earned per dollar on government providers including the ATO (0.5 = 0.375 frequent flyer points)
- Everyday Earn Rate – 2 MRG points (everyday spend) = 1.5 frequent flyer points with: Virgin Australia Velocity, Singapore Airlines KrisFlyer, Cathay Pacific Asia Miles, Air New Zealand Airpoints ($0.015 Airpoints Dollars), Emirates Skywards, Etihad Guest, Malaysia Airlines Enrich and Thai Airways Royal Orchid Plus.
- Hot Tip: SPG transfer rate of 2MRG to 1SPG point (Perfect for transfer to one of the many SPG airline partners such as AAdvantage by American Airlines, United or Alaska)
- Points capping: Uncapped
- Interest Free – Support your cash flow with up to 55 days interest-free on purchases
- Tools – Supported transaction accounting feeds: MYOB
- Technology – Eligible for use with Android Pay, Apple Pay and Samsung Pay
- Interest rate – 16.99% p.a. on all purchases
Business Explorer Earn Rate
A unique benefit of the Explorer credit cards is the fact they earn full points (2 points per dollar) on utilities and insurance bills which are capped at 0.5 for all other types of Amex cards. If your business has large telecom or power expenses each month, the Amex Explorer is the way to go and will see your points balance skyrocket in no-time.
Explorer Credit Card Insurance
Of course, this card also comes with a generous amount of travel insurance which covers yourself, direct family and employees that are supplementary card holders for the following:
- Damaged, destroyed, lost or stolen personal baggage, money and documents during your trip
- Card Account Balance Waiver
- Cover Medical emergency expenses
- Delayed flight or missed flight connection
- Luggage delay for luggage checked on a scheduled flight,
- Travel disruption due to the unforeseen and unavoidable cancellation of a trip
Airport Lounge Access
Just like the standard Explorer card, the Business Explorer offers two lounge access passes to the Amex Lounge in Sydney T1 and the soon to be completed Amex Lounge in Melbourne international airport. Unfortunately, the access isn’t extended to the supplementary card holders.
What If Your Supplier Doesn’t Accept Amex?
Amex is working hard on increasing their acceptance rate among retailers and suppliers and plan to double uptake in the next two years. In the meantime, a valid concern business owners have is the acceptance rate of Amex cards for all their purchases.
Luckily there’s a new startup helping to bridge the gap. RewardPay is a service dedicated to business owners looking to pay all their invoices with American Express and earn the full amount of points for doing so. Even if your supplier does not accept credit cards, RewardPay has got you covered. There is a small service fee of 2.4% + GST, but depending on your business activities this is, of course, tax deductible (check with your accountant).
Assuming your business is on a 30% tax rate that would bring the cost per point on Amex Explorer down to 1.12c which is not a bad price at all! Of course, I’m no accountant so please do the maths and work out the true cost for your business before jumping in.
American Express Business Explorer: In Conclusion
Amex Explorer is the highest “everyday” business points earning credit card on the market right now, and even though it doesn’t earn bonus points in special categories such as travel, it does earn a flat 2 points per dollar (1.5 frequent flyer points) in almost every other category of spending.
This card makes great sense for businesses spending at least $100,000 on operating costs. Small businesses turning over less than $50,000 per year should consider the American Express Business Accelerator which earns 2 frequent flyer points per dollar but is capped at $50,000 annually after which the earn rate drops to 1 points per dollar. The Business Explorer, on the other hand, is uncapped and offers a generous loyalty bonus of 50,000 MRG points per year when you hit the minimum spend.
Eligible new applicants also earn a significant sign-up bonus of 100,000 MRG points which equates to 75,000 frequent flyer miles.