AMEX launches credit card feature dubbed “Pay Your Way”
AMEX has introduced a feature that allows cardholders to spread payments for large purchases into small monthly installments on a 0% interest rate. The new facility dubbed “Pay your Way” was created in response to customers who wanted more control over their finances.
“Two-thirds of Australian credit card holders use their card to pay for large purchases because of the security and convenience it offers,” said AMEX spokesperson, Austin Huntsdale.
“With Pay Your Way, customers have the additional comfort of 0% instalments so they have greater control over their repayments.”
Who is eligible?
Australians with personal AMEX cards issued by American Express.
How it works:
1. Cardholders opt to select a minimum purchase amount of $300, $500 or $1,000, then choose a repayment term of 3, 6 or 12 months.
2. Next, they can start shopping at any retailer that accepts AMEX. During their chosen term, purchases equal to or above the selected purchase amount will be automatically converted into instalment plans.
T’s and C’s to keep in mind:
Purchase plans are capped at 85% of the customer’s credit limit. A fee is charged for each plan of: 2% for 3 month plans, 3% for 6 month plans, and 4% for 12 month plans.
“Pay your Way” hypothetical scenario:
Say you made a $600 purchase on a 6 month “Pay Your Way” plan. You would incur an $18 establishment fee and make monthly payments of $103. Thanks to the 0% interest rate, the total cost of your shop would be $618.
Like the idea of being charged at zero interest while making steady repayments to pay off your debt? Read about the world of 0% purchase rate cards and compare them at our credit cards hub now!
If you liked this, try reading: What are the benefits of a rewards card?