American Express launches new Business Explorer credit card
By Chris C., July 17 2017
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Executive Traveller may receive a commission when you apply for these credit cards via our links.
The information provided on this page is purely factual and general in nature. You should seek independent advice and consider your own personal circumstances before applying for any financial product.
American Express’ new Business Explorer credit card allows entrepreneurs to earn frequent flyer points on their business purchases at generous and uncapped rates, with an annual fee of $395 that won’t break the bank.
Attached to the Membership Rewards Gateway (MRG) program, cardholders can earn two MRG points per dollar spent on most charges (including with insurers and utilities), plus 100,000 bonus MRG points when applying as a new AMEX customer and spending at least $3,000 on the card within the first three months.
These points can be converted at a 4:3 rate to Virgin Australia Velocity, Singapore Airlines KrisFlyer, Cathay Pacific Asia Miles, Malaysia Airlines Enrich, Emirates Skywards, Etihad Guest, Thai Airways Royal Orchid Plus and Air New Zealand Airpoints (4 = $0.03), giving a solid everyday earning rate of 1.5 frequent flyer points (or Airpoints cents) per dollar spent.
Businesses can add up to 99 supplementary cardholders onto the account to maximise their points at no extra cost, such as for employees to use for their business-related purchases, with all points earned going straight to the primary cardholder – typically the business owner.
As an ongoing offer, businesses that charge $100,000 or more to the account each year (including across all supplementary cards) will also receive 50,000 bonus MRG points, although all government spend (such as ATO payments) attracts a reduced 0.5 MRG points per dollar spent throughout the year.
Given the Gateway program’s 4:3 airline conversion rate, that means you’ll be earning just 0.375 actual airline frequent flyer points for every dollar of government spend – lower than the 0.5/$1 earn rate of most other AMEX-issued business credit cards.
Assuming you do spend $100,000 in the first year of which 10% is at the lower ‘government’ earn rate, you’d fetch a total of 335,000 Gateway points (including the one-off sign-up and yearly spending bonuses), on-par with 251,250 frequent flyer points.
Spend just $1,167 more on the card and convert your pile of Gateway points into KrisFlyer miles and you’d have exactly enough miles to fly return from Sydney or Melbourne to London with Singapore Airlines, travelling in business class in one direction and at the very front in first class the other way.
Also included are two yearly visits to the AMEX Sydney Airport lounge (for the primary cardholder only), travel insurance for all cardholders (including supplementaries) when the card or points are used to pay for the business trip, and access to Apple Pay, Samsung Pay and Android Pay for all cardholders.
To apply, the business owner must have a personal annual taxable income of $24,000 or more and have been in business for at least two years, with the card having no defined minimum credit limit to qualify for.
Cardholders receive up to 55 interest-free days on purchases when paying the closing balance in full each month or will pay interest rate of 16.99% p.a. when carrying a balance from month to month, being a ‘credit card’ rather than a ‘charge card’.
Unlike the personal AMEX Explorer card, the Business Explorer card doesn’t include a $400/year ‘travel credit’ or smartphone screen insurance: instead with more business-themed ‘card account balance waiver cover’, ‘business trip completion cover’ and ‘personal liability cover’ when travelling.
A 3% international transaction fee applies to all spend in foreign currencies.
Disclaimer
Executive Traveller may receive a commission when you apply for these credit cards via our links.
The information provided on this page is purely factual and general in nature. You should seek independent advice and consider your own personal circumstances before applying for any financial product.
Chris is a a former contributor to Executive Traveller.
Virgin Australia - Velocity Rewards
10 Dec 2016
Total posts 43
The one benefit from the RBA's changes are that AMEX is lifting its already good game and actually providing a very viable alternative to the Bank backed cards. The RBA changes were supposed to benefit consumers. All the changes have done is reduce points earn and number of points you can earn each month. More and more merchants are now passing on the commission charge than ever before. Big monster fail RBA, you should stick to things you know and understand like interest rates !
18 Jul 2017
Total posts 1
Is there a waiting period to get the bonus 100k points if you've had the personal AMEX explorer card?
24 Apr 2012
Total posts 2424
Hi Lemo, this is outlined in the T&Cs of the offer which you can read in full by clicking through to the card, specifically:
"Card Members who currently hold or who have previously held any other Card product issued by American Express Australia Limited in the preceding 18 month period are ineligible for this offer. Previous and existing bank-issued American Express companion cardholders are eligible for this offer (cards issued by: Australia New Zealand Banking Group Limited, Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation.)"
Virgin Australia - Velocity Rewards
10 Dec 2016
Total posts 43
Amex are being sensible with allowing those people who held Bank Amex cards to be eligible, a big kick in the guts to the banks who will now have an even more profitable card business due to the reductions in points earn and allowable $ for statement periods. They can thank the RBA for truly sticking it to the consumer with their "reforms"
24 Apr 2012
Total posts 2424
In fairness, American Express has always allowed bank-issued AMEX cardholders to earn bonus points when signing up as a new customer direct with AMEX - they now just specifically mention that in the T&Cs to avoid any doubt.
Virgin Australia - Velocity Rewards
10 Dec 2016
Total posts 43
Ah thanx Chris, my bad I wasnt aware of that
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