How does Amex Pay Over Time Work?

This question is about American Express Credit Cards

James Bronzz, Working on my CPA

@jbronz 11/09/20 This answer was first published on 11/09/20. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Amex Pay Over Time is a feature on American Express charge cards that allows the cardholder to pay for certain charges of at least $100 over the course of multiple billing periods. The Pay Over Time feature is available on the Amex Green, Gold and Platinum cards, both the consumer and business versions. It is unique because charge cards typically require the cardholder to pay their entire balance in full each month.

When you have a card with the Amex Pay Over Time feature, you essentially have two balances. One is your normal balance, which you are required to pay in full each month. The other is your Pay Over Time balance, where Amex moves eligible charges of $100+. You can choose to pay your Pay Over Time balance in full as well. But if you decide to carry some or all of it between months, you will owe interest on the balance. Your Amex Pay Over Time interest rate depends on your credit, income and other factors. There is also a limit on your Pay Over Time balance, and any charges over that which would be eligible will instead need to be paid in full. You can view the limit on the Balance Details page of your online account.

In order to use the Amex Pay Over Time feature, you will need to activate it through your online account. You can find the option in the Account Services menu.

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How does the Amex Platinum Pay Over Time feature work?

The Amex Platinum Pay Over Time feature gives cardholders extra time to pay off select charges of $100 or more. Amex Platinum cardholders have the option of making only a minimum or partial payment toward their Pay Over Time balance by the due date each month. Pay Over Time balances carried from month to month will accrue interest at a rate assigned by American Express when you’re approved for a Platinum Card account, however. A penalty rate of around 29% may apply to late or missed payments too.… read full answer

Cardholders are automatically enrolled in Amex Platinum Pay Over Time. You can either finance all eligible purchases or manually pick which of those charges you want to pay over time. The remaining charges will move back into your regular balance. Since Amex Platinum is a hybrid card, payment for all non-Pay Over Time purchases is still due in full each month.

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Do you have to pay off an American Express card every month?

You don’t have to pay off all American Express cards every month. Most Amex credit cards allow you to carry a balance from month to month, requiring only a monthly minimum payment to keep your account in good standing. That’s the case with the Blue Cash Preferred® Card from American Express… read full answer and Blue Cash Everyday® Card from American Express, for example, as well as the The Amex EveryDay® Credit Card from American Express and others. Some even offer 0% introductory APRs.

On the other hand, you do have to pay some American Express cards in full every month. That includes The Platinum Card® from American Express, American Express® Gold Card and American Express® Green Card. But there are exceptions. If you have one of those cards and use it responsibly, American Express may offer to let you pay for certain purchases over time. Interest will apply to such purchases, though, at a rate that won’t be disclosed until Amex extends an offer.

You can check out WalletHub’s review of the best American Express credit cards to find a good option for carrying a balance. Just don’t expect to find a low regular APR. American Express credit cards are known more for rewards than low rates.

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