High Spending to get Business Card Bonus

[BronzeTrader]

A lot of the card require $5,000 spending in 3 month....

[Anonymous]

20k in 3 months for the AMEX Business Platinum. My business met that in a single purchase when I signed up, so I wouldn't consider 5k minimum spend to be remotely high for a business card.

It is pretty obvious what kind of client they are looking to attract with the relatively high minimum spend, though it does little to deter the churners. It might slightly change the risk calculus for those that would struggle to meet the spending through organic means; you can work 5-7 bonuses for the same amount of spending. The opportunity cost may not be worthwhile, especially if AMEX starts regularly clawing back after certain less than honest spending patterns.

[BronzeTrader]

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@Anonymous wrote:

20k in 3 months for the AMEX Business Platinum. My business met that in a single purchase when I signed up, so I wouldn't consider 5k minimum spend to be remotely high for a business card.

It is pretty obvious what kind of client they are looking to attract with the relatively high minimum spend, though it does little to deter the churners. It might slightly change the risk calculus for those that would struggle to meet the spending through organic means; you can work 5-7 bonuses for the same amount of spending. The opportunity cost may not be worthwhile, especially if AMEX starts regularly clawing back after certain less than honest spending patterns.

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Sure certainly.  Many businesses have a daily expenses in $MM.  But many many more businesses are very low expenses.  

[Anonymous]

BronzeTrader, 

Was there a question or discussion about the spending requirements? As in how they expect, or why business cards have them? 

[shoegal]

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@BronzeTrader wrote:

A lot of the card require $5,000 spending in 3 month....

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I agree! I think especially Amex is targeting higher volume businesses. My business doesn't spend enough for that bonus requirement. Unless, I put my business tax bill, rent, and utilities through the business card, which I don't like doing. And, I use my personal credit cards for those personal bills. I wish they made one with less spend but a good bonus.

[BronzeTrader]

I think there are just different types of "business".  You can have large corporations, mid-size companies (500?), small company (20 to 50) and proprietors.  Some of the proprietors do not have huge spending.  Those people are consultants, white-color contractors, IT people, teachers etc.  For those people the normaly costs are travel, computer and communication, office supply etc.  Those people may make $10,000 to $20,000 a month and have less than $1,000/month expenses.  

Certainly AmEx wants all the business customers, big or small.  But the bar has to be high.  No free $$ to hand out.