One of the most important decisions you’ll make in your small business’s card journey is choosing between cash back and points and miles. If you’re Team Cash Back, the new Graphite™ Business Cash Unlimited Card has a bid to make for a spot in your business’s wallet.
However, despite its straightforward earning structure, the card struggles to stand out among competitors offering better value at a lower cost.
With weak benefits, a high annual fee relative to its value proposition and a steep spending requirement for its welcome offer, the Amex Graphite card is one to avoid unless you’re fully committed to American Express.
Card rating*: ⭐⭐
*Card rating is based on the opinion of TPG’s editors and is not influenced by the card issuer.
Amex Graphite card: The basics
With a $295 annual fee (see rates and fees), it’s fair to assume the Amex Graphite card offers a solid roster of benefits. After all, that annual fee is approaching premium-card territory.
The Graphite card presents a fairly simple list of perks:
- No preset spending limit: Unlike a traditional card with a set limit, the amount you can spend adapts based on factors such as your purchase, payment and credit history
- Pay Over Time: Carry a balance with interest on eligible charges, subject to the pay over time limit (variable APR 17.74% — 28.49%)
- Access to One AP Invoice Management: Enrollment required for buyers and suppliers
- One AP statement credit: Receive up to $2,400 in annual statement credits to use in the next calendar year on Amex One AP monthly fees after spending $250,000 eligible on purchases in a calendar year (subject to auto-renewal)
- American Express Business Blueprint™: A cash-flow management system that grants you further insight into your Amex and linked, eligible external accounts
- Various travel and purchase protections
As far as earning rates go, the Graphite card has a single bonus category: 5% cash back on flights and prepaid hotels booked through American Express Travel® Online. Other than that, you’ll earn 2% cash back on all eligible purchases. There’s no spending cap for either category, which aligns with this card’s aim at high-spending businesses.
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Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at amazon.com checkout.
Amex Graphite card pros and cons
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*Unlike a traditional card with a set limit, the amount you can spend adapts based on factors such as your purchase, payment and credit history
Amex Graphite card benefits
For a card with a $295 annual fee, I expected more out of the Amex Graphite card. The only tangible way to offset its annual fee, outside of earning enough cash back, is with its up to $2,400 in statement credits that cardmembers can receive for Amex One AP monthly fees.
The problem with this is that you’ll have to spend a whopping $250,000 in the previous calendar year to access this perk. That’s a huge ask of most small businesses, and fully out of reach for anyone with a side hustle.
Aside from this, you’ll be charged no foreign transaction fees and receive access to Pay Over Time (on eligible purchases; subject to the Pay Over Time limit; variable APR 17.74% — 28.49%), Amex’s business management tools and various protections.
You’ll also have no preset spending limit. Unlike a traditional card with a set limit, the amount you can spend adapts based on factors such as your purchase, payment and credit history.
While these benefits are nice, they’re standard across many Amex cards, especially those with significantly more perks than the Graphite card.
The Graphite card would be a much better card if it followed in the footsteps of Amex’s Membership Rewards business cards and offered multiple statement credits to help cardmembers justify its annual fee.
How to earn and use your rewards
Many people choose to go the cash-back route instead of points and miles because they place a high value on simplicity with their rewards. The Graphite card delivers here, with the following earning rates:
- 5% cash back on flights and prepaid hotels booked through Amex Travel Online
- 2% cash back on all other eligible purchases
Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon checkout.
In order to get outsize value from this card’s $295 annual fee, you’d need to spend about $6,000 on eligible Amex Travel purchases or $14,750 on everyday purchases. If your business spends a lot on travel and you’re willing to book through a travel portal, it shouldn’t be hard to spend enough to recoup the Graphite card’s annual fee.
Compared to cash-back cards from other issuers, your redemption options are very limited. Most cardmembers will likely want to redeem their Reward Dollars for a statement credit, but it would be nice to have the option to deposit Reward Dollars into an Amex business checking account.
Where the Amex Graphite card falls short
If you aren’t fully committed to both cash back and American Express, there’s almost certainly a better option for your business. It isn’t easy to get value out of this card’s $295 annual fee.
You need to hit an extremely high spending requirement just to get access to the card’s single statement credit, and its other perks are standard across many other cards.
Amex Graphite card vs. Amex Business Gold
As far as cards for high-spending businesses go, the closest comparison to the Amex Graphite card is the slightly more expensive American Express® Business Gold Card. Coming in at $375 each year (see rates and fees), the Amex Business Gold does a much better job of offering substantial potential value to cardmembers.
You’ll receive up to $240 each calendar year for purchases made at U.S. FedEx, Grubhub and office supply stores, and strong, business-oriented earning categories. The Amex Business Gold earns Membership Rewards points, which can be transferred to 20 airline and hotel partners for maximum redemption value.
Enrollment is required for select benefits.
Between these two cards, I believe it’s a no-brainer to go with the Amex Business Gold in most circumstances. The rewards you’ll earn are more valuable, and it’s much easier to get outsize value from its annual fee.
Related: American Express Business Gold review
Is the Amex Graphite card worth it?
In my opinion, the Graphite card is only worth it if you’re fully committed to earning cash back with American Express. If your business doesn’t fall under that category, I recommend considering one of Amex’s other business cards instead. It’s too difficult to get meaningful value out of the Graphite card year after year, particularly for those working side hustles or running a very small business.
When to apply for the Amex Graphite card
If you’ve decided you want to give the Graphite card a chance, new cardmembers can earn $1,500 cash back in the form of Reward Dollars after spending $50,000 on purchases in the first six months of card membership. Reward Dollars can be redeemed as a statement credit or at Amazon checkout.
Since this is a brand-new card, this is the only offer we’ve ever seen. It’s worth noting that the spending requirement is exceptionally high for a small-business card; you’ll need to spend over $8,000 per month to hit it. For a $1,500 return, that’s a big ask.
That said, I wouldn’t wait to apply for this card. While there’s no guarantee what will happen with this card’s welcome offer, issuers typically offer elevated welcome bonuses to celebrate the launch of new cards.
Remember that Amex only allows cardmembers to earn one bonus per card in a lifetime.
Other cards to consider if you don’t want the Amex Graphite card
I’ve already mentioned the Amex Business Gold as a great alternative to the Amex Graphite, but here are three additional options to consider:
For additional options, take a look at our picks for the best business cards and best cash-back cards.
Bottom line
The Graphite card leaves a lot to be desired. For a $295 annual fee, it should offer a more comprehensive set of bonus categories and easy-to-earn statement credits.
Unless you’re all-in on earning cash back with Amex and your business spends a lot each month, your best bet is to check out one of Amex’s several other business cards. Most of them offer a substantially better value proposition.
Apply here: Graphite Business Cash Unlimited Card
For rates and fees of the Amex Graphite card, please click here.
For rates and fees of the Amex Business Gold, please click here.
For rates and fees of the Amex Blue Cash Preferred, please click here.
For rates and fees of the Amex Blue Business Cash, please click here.
For rates and fees of the Amex Blue Business Plus, please click here.
Stacie Harris is a local resident and reporter of the Maple Grove area. Stacie reports on medicine and science for the Maple Grove Report.
