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What should I know about American Express's "Pay It", "Plan It", and "Make Payment" options?

Personal Finance & Money Asked on August 3, 2021

The Amex app is well made and, technically speaking, a pleasure to use. That being said, I have no idea how making a payment works.

About me: I am on top of every charge, and I make a payment whenever I am able, even if it means i’ll have a negative balance.

Unfortunately, Amex limits the amount you can pay. I wish I could just build up a negative balance so I wouldn’t have to go in and out of the app every day, but sometimes the app will say "Please enter an amount less than $_.__" (I have no idea how this amount is calculated, and it’s never the same). Other times, it will say "No balance due at this time."

What makes this even more frustrating is the fact that each transaction has a "Pay It" option, which allows you to pay off individual transactions, regardless of the above-mentioned circumstances. So, the way I understand it, you can pay (for example) for 50 coffees at $2 a piece individually but you can’t just make a "lump sum" payment of $100.

Another inconvenience is that, it seems–none of this seems to be clear or consistent–for large purchases, there may be a "Plan It" option, which let’s you pay for the purchase in increments over time, but there is no "Pay It" option for those who might be interested in settling their debts as soon as they’re able.

Is there a purpose to all of this that I am not seeing?

2 Answers

I just pay my Amex “balance due” a couple days before the due date. I don’t recall if Amex charges a fee and/or interest for these other “plan it” type options, I suspect their goal is to get people used to “planning it” while there’s no fee then charging for this service later. The point of these options is that people can’t simply pay the total or want to delay payment in full.

When I log in I have a “make payment” option listed under my total balance. And even though I don’t have a balance due I can make a payment of $100 right now. Just use that rather than micro managing the charges; life is too short. You definitely don’t have to go in and out of the app every day.

Answered by quid on August 3, 2021

There is more information about "Pay it" and "Plan it" here: https://www.americanexpress.com/us/credit-cards/features-benefits/plan-it/

In summary I think you are not using a credit card the way most people use a credit card / the way Amex expect people to be using it.

If you have enough money to pay off the balance every month (which it sounds like you do), then just do that via auto payment. You won't be accruing any interest in this scenario.

I don't understand the benefit to you of micro-managing the individual transactions in this way.

Answered by Vicky on August 3, 2021

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