New Amex Graphite business card offers flat-rate rewards, but there are better options for your business

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Amex has expanded its business card lineup with the introduction of the American Express Graphite™ Business Cash Unlimited Card.

It earns at least 2% cash back* on eligible purchases, which should make it a strong option for business owners looking to simplify their rewards. However, it has a steep $295 annual fee (see rates and fees) and lacks straightforward benefits to justify the cost.

To put it simply, you can earn 2% cash back on eligible business purchases and pay no annual fee with other business cards. Let’s take a closer look at this card and how it stacks up against the competition.

*Cash back is earned in the form of Reward Dollars that can be redeemed for statement credits

The Amex Graphite Business earns cash back at the following rates:

• 5% cash back on flights and prepaid hotels booked through American Express Travel®
• 2% cash back on all other eligible purchases

The cash back return from this card is strong, but the $295 annual fee (see rates and fees) is what sinks it. Here’s another way to analyze the annual fee*: It takes $14,750 in annual spending at 2% cash back to earn enough rewards to pay for it. On top of that, you pay $95 per year for the first five employee cards and $95 for each additional employee card*.

That’s not an unrealistic amount to spend for an average business. The problem is that you can get 2% cash back on all of your eligible business purchases for a much lower annual fee. (We cover some of those options further below.)

The Graphite Business currently features a huge welcome offer worth $1,500 cash back (in the form of Reward Dollars) after spending $50,000 in purchases on the card within the first six months of card membership. It also has one main benefit: You can earn up to $2,400 in Amex One AP® statement credits to use on monthly fees in the next calendar year. American Express One AP® is Amex’s accounts payable automation platform, and to receive this credit, you’ll need to spend $250,000 on eligible purchases in the current calendar year.

If your business spends enough to qualify for the Amex One AP® benefit, then you might find The Business Platinum Card® from American Express much more valuable. After spending $250,000 on eligible purchases, it offers the same accounts payable credit and $1,200 in Amex Travel statement credits for flights booked on AmexTravel.com.

Those massive credits are on top of thousands of dollars in other annual perks, including credits for hotels, airline fees and business services.

While it costs $400 a year per Employee Business Platinum Card® you add to your account, each cardholder can enroll to receive airport lounge access, hotel elite status and other benefits. You can save money by opting for Employee Business Expense Cards that have no annual fee but far fewer perks. You can add up to 99 employee cards to your account in total (see rates and fees).

Business owners who are considering the new Amex Graphite card and aren’t committed to using Amex business services may find more value in the Capital One Spark Cash Plus. It has a smaller $150 annual fee and earns 5% cash back on hotels and rental cars booked through Capital One Business Travel and 2% cash back on all other purchases.

The Spark Cash Plus is also loaded with big bonuses for large spenders. You’ll earn a welcome bonus of $2,000 after spending $30,000 in the first three months and another $2,000 for every $500,000 you spend in the first 12 months. Also, after spending $150,000 in any year, the $150 annual fee is refunded.

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For rates and fees of The Business Platinum® Card from American Express, click here.

For rates and fees of the Graphite^TMBusiness Cash Unlimited Card, click here.