- Centurion Member
- Posts: 167
- Joined: Sat Aug 17, 2013 1:01 pm
- Location: Fort Lauderdale, FL
Hi - I'd like to take a shot at clarifying how Pay Over Time works as there seems to be a lot of confusion.
Pay Over Time, as you're all already aware, is the option to pay eligible charges over time as opposed to pay in full like a traditional charge card. There are two versions of this - Select & Pay Later, in which you call American Express (or go online) and ask to move eligible charges - usually charges $100+ - into your Pay Over Time balance. The second, is Extended Payment Option - which is the same as Select & Pay Later, but it's automatic - all eligible charges go into Pay Over Time right away. You cannot have Extended Payment Option without having Select & Pay Later first.
Having a balance in Pay Over Time does not necessarily always mean that you'll be assessed interest right away - it works the same with the other lending cards. If you pay your statement balance or current balance (which is your statement balance minus any payments or credits that have been applied since statement closing - you can see this balance on the "pay bill" screen on the website or mobile app) in full before your due date, you will not have any interest charges. The only time you will start being assessed interest on your statement is if you do not pay that current balance in full by your due date - at which point it will continue to compound on a daily basis until that new current balance is brought down to $0.
Please remember that if/when you do decide to revolve a balance, that is pay less than your current balance by the due date, you will see residual/rolling interest for those number of days between the last statement closing date and the date that you brought that current balance to $0 on the following statement.
Hopefully this can clarify how finance charges work on Pay Over Time. You are not required to have Pay Over Time on your account and if you would ever like to remove it, or if you have any other account-specific questions, please dial the number on the back of your card and a representative will be happy to assist you.
I am an employee of American Express. All posts are those of my own and do not reflect the actions or opinions of AXP. While all efforts are made to ensure accuracy in my posts, for official statements or responses, please consult with @AskAmex on Twitter or dial the number on the back of your card.