Charge cards have gained immense popularity lately, offering enticing rewards and benefits. But do they truly outshine the standard American Express business credit cards for your business? And is there a way to control and manage employee credit card spend without being forced to switch your card?

This blog will compare BILL’s charge card and Amex's business credit cards. Let's kick things off by examining the BILL Spend & Expense Card (Formerly Divvy).

BILL Card Overview

The BILL Spend & Expense (formerly Divvy) Card is a charge card designed to streamline business expense management. It's a business charge card with expense tracking and budgeting features. Companies can distribute funds to specific employees or departments, specify spending limits, track real-time transactions, and create reports.

American Express Business Credit Card Overview

The American Express business credit cards need no introduction. They're robust credit cards with various features, rewards, and benefits. Different types of Amex business credit cards are tailored to different customer needs and preferences, giving you a plethora of options to choose from.

BILL Card vs American Express Business Credit Card

Why Your Existing American Express Credit Card Is Better Than The BILL Card

Here are all the reasons you should reconsider switching from your American Express business credit card to a charge card like the BILL Card.

Credit limit restrictions

BILL sets your business's credit limit based on factors like the financial health of the business, its credit history, and specific terms of the agreement with Divvy. This could lead to your business getting lower credit limits than it could obtain from traditional banks, especially if you have a long-standing relationship with the bank or a strong credit profile.

Limiting your business's purchasing power forces you to work within the confines of the set credit limits. Depending on how your business sees it, it can either help manage cash flow effectively or block cash flow, hindering business growth. Additionally, since BILL assesses creditworthiness based on algorithms, your credit limit might fluctuate, which can disrupt your business's functioning.

Amex credit cards offer more flexibility with credit limits, as they consider financial health at the business and individual levels. The credit limits are adjusted based on usage patterns, payment history, and overall financial health, enabling you to accommodate larger expenses or higher spending volumes.

Strict requirement to pay in full

When using charge cards, you are forced to pay the full balance every billing cycle (usually a maximum of 30 days.) This can be restrictive for businesses with fluctuating cash flows or that like to carry a balance for strategic financial reasons. 

With traditional credit cards like Amex, businesses can carry over balances over time, subject to interest charges, but this flexibility can be beneficial for managing cash flow and more. 

Being forced to pay in full can be difficult in times of financial strain, as there might be unavoidable expenses that need immediate attention. 

Limited and unpredictable rewards program

Fintech companies offer rewards programs that can be inconsistent, primarily because they heavily rely on their capital. The over-reliance on internal resources makes their stability less certain. They may adjust their cashback and rewards offerings if their cash reserves become depleted. Additionally, transitioning to a fintech card program often means giving up years of accrued rewards and established relationships with existing banks.

On the other hand, American Express maintains consistent cashback and rewards structures thanks to its robust risk assessment model and access to capital. As you improve your banking relationship over time, you naturally accumulate more rewards.

Shorter credit cycles

BILL's credit cycles may be shorter, reducing the time your business has to repay expenses accrued through its credit facilities. This can significantly constrain your cash flow, especially if your operations rely on credit extensively or your revenue fluctuates.

In contrast, traditional credit cards like Amex typically provide longer credit cycles, enabling businesses more time to settle their credit card expenses. This extended timeframe offers flexibility and a buffer for businesses to manage their financial obligations more effectively.

Variable cash requirements

Fintech cards such as BILL's sometimes require a minimum balance ($20,000 to $250,000) for eligibility. This limitation significantly affects payment flexibility and cash flow management within your business.

For example, if your business encounters financial strain and the minimum balance requirement is not met, access to essential cash flow becomes restricted, potentially hindering business operations. But in most cases, Bill provides a predetermined credit line, which is not subject to cash balance fluctuations.

Many businesses opt for credit cards like Amex to maintain stable cash flow due to their extended payment periods, higher spending limits, and the absence of a mandatory minimum balance requirement.

Fluctuating credit and card usage

Fintech companies like BILL may adjust credit limits (based on the bank balance of your business) more frequently and sometimes without prior notice than traditional banking institutions. This dynamic alteration can lead to unexpected card declines and inconvenience for your employees.

For instance, if your business needs to make a large unexpected purchase or experiences increased spending, BILL may reduce your credit limit, potentially disrupting your business operations.

In contrast, bank-issued cards such as Amex credit cards provide stability and predictability regarding credit limits. Once the credit limit is set, it remains unchanged unless the cardholder requests it or there's a significant change in the business's creditworthiness.

Manage Your Amex Business Credit Card Expenses Without Switching Cards

Choosing a solution to manage your credit card expenses depends on your business's specific requirements and preferences. If you want to manage your American Express business credit card expenses without switching cards, your search ends here.

Fyle directly integrates with American Express, offering real-time receipt tracking via text, automatic reconciliations, and more without forcing you to switch your credit card. 

Additionally, if you're looking to issue virtual cards for your employees, Fyle can do that too. These cards will be issued utilizing your existing American Express credit line, eliminating the need for additional credit approvals.

Sign up for a demo today to see how Fyle can help you improve your expense management process!