American Express offers both charge cards and credit cards. The AMEX Green, Gold and Platinum cards are charge cards and other cards offered are credit cards.
AMEX has done several things to blur the line between the products by adding features to the charge cards that make them more like credit cards. The most obvious is the Pay Over Time feature, which lets you carry a balance on your charge card.
I just received a notice from AMEX for our Green Card to alert us about an upcoming change to the Pay Over Time benefit. Previously, you could move any charge over $100 into the Pay Over Time category. Starting on October 1. 2021, all charges will automatically go into the Pay Over Time category if you have the setting activated on your card.
Starting October 1, 2021, if your Pay Over Time setting is set to Active, all eligible charges, regardless of dollar amount, will be automatically added to your Pay Over Time balance, up to your Pay Over Time Limit. When your bill is due you can choose to pay your Account Total New Balance in full each month, the Minimum Payment Due, or any amount in between. If you do not pay your Account Total New Balance (or, if you have a Plan balance, your Adjusted Balance on your billing statement) in full by your payment due date each month, interest will be charged starting from the date each eligible charge is added to your Pay Over Time Balance until the date it is paid.
That sounds a lot like how a credit card works. The only difference is that you still have the option to turn off Pay Over Time and here are the instructions on how to do it.
This change is not surprising as American Express already counts the Green Card as a credit card when it comes to your four credit card limit.
With AMEX Green cardholders being able to carry a balance for any charge, I see a future where the Green Card shifts to a credit card. They’re more than halfway there already. All AMEX would need to do is eliminate the ability to turn off Pay Over Time.
With AMEX already counting the Green Card to your credit card limit, it’s apparent they are on the path to make it a credit card. This development brings them closer to achieving that goal. Even if it happens, I doubt that most cardholders would notice a difference.
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This post first appeared on Your Mileage May Vary