Amex Pay Over Time is a feature on a few American Express cards that allows you to pay for certain eligible charges over the course of multiple billing periods. The Pay Over Time feature is available on cards that normally require you to pay your statement balance in full each billing period.
With Pay Over Time, you can finance eligible purchases over a long term with interest. This is a convenient feature if you're unable to pay off your balance in full, but as with any balance carried from month to month, that can get expensive.
Popular Amex Cards that Offer Pay Over Time
There are also several other Amex business cards offering the Pay Over Time feature.
How Amex Pay Over Time Works
- Amex automatically enrolls your card.
You don’t have to activate the feature or opt in. Eligible accounts will automatically be set to “Active” status at account opening. You can view or change your setting online or by calling customer service at the number you see on the back of your card.
- Your card has two balances at the same time.
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 approved charges.
- There is a Pay Over Time limit.
You can view the limit on the Balance Details page of your online account. All charges not included in the Pay Over Time balance will need to be paid in full every month.
- Eligible purchases are automatically added to Pay Over Time.
Eligible purchases are automatically added to your Pay Over Time balance each month. You can choose to pay your Pay Over Time balance in full at the end of the billing period. This way, the card continues to function as it always has, with no interest applied.
- Interest charges accrue if you don’t pay off your balance.
If you decide to carry some or all of your Pay Over Time balance between months, you will owe interest on this balance. Your Amex Pay Over Time interest rate depends on your overall creditworthiness.
- You earn rewards normally.
Whether you use the Pay Over Time feature or not, you will earn rewards on all purchases.
Another useful thing to keep in mind is that not all types of transactions are eligible for the Amex Pay Over Time feature.
Purchases That Qualify for the Amex Pay Over Time Feature
Most purchases qualify for the Amex Pay Over Time feature. However, there are several transactions that don’t, including:
- Cash advances and cash equivalents
- Gift cards
- Insurance premiums
- Casinos and gambling transactions
- American Express annual membership fees (if you have an intro APR)
Amex Pay Over Time Pros & Cons
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- Possibility of a high APR
- Available on both personal and business cards
- Cards are automatically enrolled in Pay Over Time
- Continue to earn rewards as usual
- Carrying a large balance can hurt your credit score
Although the Amex Pay Over Time feature can be convenient, you should consider the interest rates that come with it. If you want to finance large purchases, you would be much better off using a 0% APR credit card.
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