This post was sponsored by Amex Bank of Canada. The views and opinions expressed in this blog, however, are my own. American Express is not responsible for maintaining or monitoring the accuracy of the information on this website.
Every entrepreneur knows that starting a business requires a lot of hard work and commitment. And once you're established as a small business, the next logical step is to grow.
This is where the all new American Express Business Edge Card comes in. With a unique combination of both short- and long-term benefits and just a $99 annual fee, the Business Edge Card is making a strong case for becoming your go-to card for your business’ everyday expenses.
If you’re a small business owner and you like what the Amex Cobalt™ Card offers for your personal spending, then you’ll love the features that the brand new American Express Business Edge Card will bring for your business. The folks at Amex really nailed it with this new credit card for small businesses, as it combines features similar to the Cobalt Card with other qualities specifically tailored to helping growing small businesses make the most out of their spending.
Here's a quick outline of this post:
Features And Benefits Of The Business Edge Card
|Welcome Bonus Offer||45,000 Membership Rewards® (MR) points when you charge $5,000 in purchases to your Card in your first three months of Cardmembership|
|Monthly Bonus Offer||1,000 bonus MR points every month you charge a minimum of $3,000 to your card. This could add up to 12,000 points in a year.|
|Points Earn Rate|| • 3X on Eats & Drinks |
• 3X on Rides & Gas
• 3X on Office Supplies & Electronics
• 1X on everything else
|Card Type||Credit Card|
|Annual Interest Rate|| • 19.99% on purchases|
• 21.99% on cash advances
|Additional Cards||No annual fee|
|Eligibility|| • You are a Canadian resident and have a Canadian credit file|
• You are the age of majority in the province or territory where you live
Let’s take a closer look at these features and benefits to see how they’ll help you in growing your business.
Bonus Points On The New Business Edge Card
Considering the low annual fee, the welcome bonus offer on the American Express Business Edge Card is definitely one of the best Amex has to offer.
You can earn up to 57,000 bonus MR points in your first year of Cardmembership, split across thirteen separate portions:
- 45,000 MR points welcome bonus once you charge a minimum of $5,000 to your card during the first three months of Cardmembership.
- An additional 1,000 MR points for every month you charge $3,000 to your card, totalling 12,000 extra MR points annually.
That brings the grand total to an impressive bonus of 57,000 MR points in your first year of Cardmembership!
Valued at 1 cent per point, which is what you’ll get for using them for a statement credit, these bonus points are worth $420 – a 324% ROI on the annual fee. However, if you get creative and use your points to pay for travel, in some cases you could get up to 2 cents per point, making the 57,000 bonus MR points worth more than $1,100! All that for a $99 annual fee and for using your card to pay for any purchase you want.
Of course, if you're going to use your card to pay for business-related purchases, you'll want to make sure you get the most out of those purchases. This is where the Business Edge Card really starts to shine!
Points Earn Rates On The American Express Business Edge Card
The Business Edge Card really outshines other Canadian business credit cards when it comes to points earn rates, and even some of the higher-end personal cards as well.
Because it offers an unbeatable 3X earn rate on the three purchase categories essential to growing small businesses. Here's some more detail on each of them.
3X On Eats & Drinks
Let’s face it: whether you're charging everyday expenses like coffee and snacks for your team, or you're celebrating a big milestone, eats and drinks are something every business, big or small, spends on. Earning 3 MR points for every $1 spent means that you’ll be saving 3-6% (at a valuation of 1-2 cents per point) on those same purchases when you charge them to your new Business Edge Card.
This is an exceptional return on your eats and drinks purchases, and means that if you just spend $5,200 per year – $100 per week – on eats and drinks, you'll earn back $150-300 in MR points.
Do the math for your own business and see how much that 3-6% is worth to you.
(Hint: If you spend more than $64/week on eats and drinks, this benefit alone will pay for the card's annual fee.)
3X On Rides & Gas
Taxis, rideshare, the occasional limo to impress that investor you’ve been after – any of these expenses will give you 3 MR points per dollar and the same 3-6% return as you get on eats and drinks. If you have your own fleet of company cars, or simply if you use your own car to move around, this 3X earn rate also applies to fuel purchases at Canadian stand-alone gasoline stations.
This is another category that most businesses spend a lot on throughout the year, and another reason why the Business Edge Card is such a great deal. Again, if you charge just $3,300 in transportation and gas charges to your card throughout the year – $64 per week – you'll earn back your annual fee and more.
3X On Office Supplies & Electronics
What does your growing business look like? Are you opening a new office, expanding your workforce, or developing new products for new markets?
In any of those cases, you’re bound to need new computers, office equipment, company phones, and more. And once that hardware is in place, you’ll also need printer ink, paper, and all the other little things that make an office work.
When you charge your office supplies and electronics expenses to your Business Edge Card, you'll find yourself with thousands of MR points ready to trade in for great rewards down the road.
Worth Noting: The Cap On The 3X Earn Rates
Just like the 5X earn rate on the Cobalt Card, these 3X earn rates are so lucrative Amex had to put a cap on them. You’ll receive 3X on your first $25,000 in purchases in any of the three 3x earn rate categories mentioned above (i.e. until you earn your first 75,000 MR points on those categories). After that, you'll earn the regular 1X on every purchase.
How To Use Your Business Edge Card's Points
Option #1: Redeem your points for a statement credit
The easiest way to use your MR points is to redeem them for a statement credit towards eligible purchases. It’s as simple as:
- Logging in to your Membership Rewards account
- Choosing to use your points
- Selecting statement credit.
You'll be able to choose from a list of past purchases you want to use your statement credit for, and that’s it!
When redeeming MR points in this way, you’ll receive a $10 credit for every 1,000 MR points you redeem, giving your points a value of 1 cent apiece.
Option #2: Book Travel
You can also use your points to pay for travel bookings including flights, hotel stays, resorts, vacation packages, cruises and car rentals – just book through American Express Travel services and pay for the entire booking with your points. The value you’ll get depends entirely on the destination, dates, airlines etc., but in general, you’ll be able to get at least 1 cent per point, with some trips giving you a value of 2 cents per point or more.
Option #3: Use Your Points For Merchandise And Other Purchases
Another popular way to use your MR points is to pay for purchases on Amazon.ca or other online merchants. You can buy gift cards and merchandise from a wide range of online merchants, or you can use your MR points to pay for dining and entertainment. Paying for merchandise with points usually offers a lower value per point than spending on travel, so we generally recommend using your points on flights to Asia or Europe instead.
Option #4: Transferring Your MR Points To Other Loyalty Programs
Finally, if the flexibility of MR points redemptions aren’t enough for you, you can also transfer them to two hotel loyalty programs: Hilton Honors and Marriott Bonvoy™. Once transferred, you can use your new points to pay for hotels stays and amenities at thousands of properties worldwide.
One thing to note: Points earned with the Business Edge Card cannot be transferred to airline loyalty programs like Avios or Aeroplan. If you're looking for a business card that can transfer to those programs, we recommend the Business Platinum Card or the Marriott Bonvoy Business Card.
The Bottom Line
The impressive welcome bonus, monthly purchase bonus, low annual fee and exceptional 3X earn rates make the American Express Business Edge™ Card a true stand-out card. We highly recommend it for growing small businesses anywhere in Canada today.