American Express launches flexible payments

Peter Terlato 11 August 2016

American Express

Spread big repayments over small, interest-free installments.

American Express has launched a new promotional program for credit card customers, offering the flexibility to spread payments for large purchases over monthly installments.

The new facility, Pay Your Way, was developed in response to consumers seeking more control over their spending and finances.

Here's how it works:

  • Spread payments for large purchases across smaller fixed monthly amounts at a reduced interest rate.
  • Choose the minimum purchase amount to be converted into installment plans and the duration of your plans.
  • Cancel your installment plans at any time.

Cardholders can choose a minimum eligible purchase amount of either $300, $500 or $1,000. There's no fixed maximum eligible purchase amount but purchases won't be converted to a Pay Your Way plan if they exceed your credit limit or bring your Pay Your Way balance to 85% or more of your credit limit.

Repayment plans can extend over a period of either three, six or 12 months.

The current interest rate for each plan is 0% p.a. However, an establishment fee applies for each plan, calculated at 2%, 3% or 4% of the purchase amount depending on the plan duration you select.

The establishment fee is charged at the end of your statement period in which the eligible purchase was made. If you cancel your plan before the end of this period, the fee will be voided.

For example, you can purchase a $1200 laptop on a six month repayment plan at $206 per month, pay a 3% establishment fee of $36, and your total outgoings will be $1236.

“Two-thirds of Australian credit card holders use their card to pay for large purchases because of the security and convenience it offers," Australia & NZ vice president consumer products Austin Huntsdale said.

"With Pay Your Way, customers have the additional comfort of zero percent installments so they have greater control over their repayments."

Pay Your Way will be exclusively available to Australian customers before eventually being rolled out globally.

To find out if you're eligible to use this new program, you can call the number on the back of your American Express card or find out more information on the company's website.

Compare the best credit card rates, rewards and options using our up-to-date guide and calculate your credit card monthly repayments to gain control of your debt.

Picture: Nadalina / Shutterstock.com

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