American Express Updates Pay Over Time: What Cardholders Should Know

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American Express is changing how Pay Over Time works on eligible charge cards. Doctor of Credit reports that Amex has told cardholders that Pay Over Time will automatically stay active starting February 1, 2027, and users will no longer be able to turn the feature off. Amex’s updated terms also confirm that the setting will become permanently active on that date.

That does not mean Amex will automatically charge interest. Cardholders can still pay the full balance each month as usual. The difference is that the option to keep eligible purchases entirely under a traditional pay-in-full structure will no longer be available.

Charge cards have historically differed from standard credit cards because balances were expected to be paid in full each month. Pay Over Time adds a revolving-credit component to eligible American Express charge cards.

When the feature is active, eligible purchases are moved automatically into a separate Pay Over Time balance, up to a limit set by Amex. At the end of the billing cycle, cardholders can choose to pay the full statement balance, make the minimum payment, or pay an amount in between.

If an eligible Pay Over Time balance remains unpaid after the due date, Amex may charge interest at the applicable APR.

It is also important to note that the Pay Over Time Limit is not the same as the spending limit. Amex may still approve purchases above that amount. Transactions that are not eligible for Pay Over Time may instead be placed in the Pay In Full balance and must be paid by the relevant due date.

What Changes Starting February 1, 2027?

At present, Pay Over Time can be set to Active or Inactive. Cardholders who prefer the traditional charge-card model can turn it off so that new eligible purchases remain in the Pay In Full balance.

That option will go away starting February 1, 2027.

Amex says Pay Over Time will be permanently set to Active, and the ability to change that setting will be disabled. Eligible new charges will therefore be added automatically to the Pay Over Time balance, subject to the card’s Pay Over Time Limit.

Why the Change Matters

For cardholders who already pay their full balance every month, the practical impact is limited. Amex says you will not be charged interest on eligible purchases placed into Pay Over Time if you pay your Account Total New Balance in full by the payment due date.

In other words, someone who uses an Amex Platinum or Gold Card like a traditional charge card can keep doing so. The real difference is behavioral.

In the past, cardholders who did not want revolving-credit features could simply disable them. Going forward, Amex will automatically make the option to carry balances available to eligible users.

That may help someone dealing with a large one-time expense or a short-term cash-flow problem. But it also makes it easier to turn a product that was once pay-in-full into interest-bearing debt.

Your Rewards Stay the Same

Turning on Pay Over Time does not change how Membership Rewards points are earned. Amex says cardholders continue to earn rewards as usual on qualifying purchases. Whether an eligible purchase is paid right away or carried through Pay Over Time does not create extra rewards.

That matters because carrying a balance just to earn points usually does not make financial sense. The value of rewards is typically far lower than the cost of interest on revolving debt.

Review Your Statement Carefully

Beginning in February 2027, statements may include both Pay Over Time and Pay In Full amounts. The minimum payment will account for applicable Pay In Full charges, part of the Pay Over Time balance, accrued interest, and other required amounts. Amex also keeps the right to raise or lower your Pay Over Time Limit.

Because of that, cardholders should not confuse the minimum payment with the amount they actually want to pay. If your goal is to avoid interest, the key figure is still your Account Total New Balance.

What Cardholders Should Do

For most readers, the approach is simple: continue paying the full statement balance by the due date whenever possible. Permanent activation of Pay Over Time does not force you to carry a balance.

It is also wise to review your Pay Over Time APR and limit so you understand the terms tied to your account. If you ever decide to use the feature, make sure you know exactly what it will cost.

And remember that having the feature available does not make it an attractive borrowing tool. Flexibility can be useful in an emergency, but Membership Rewards points are rarely worth paying significant credit-card interest to earn.

The Pundit’s View

This change is notable because it blurs the line even further between a traditional charge card and a regular credit card.

Pay Over Time has existed for years, and many cardholders already use it. What changes in February is choice. Amex will no longer allow eligible cardholders to switch it off.

For anyone who always pays in full, this should not change much. Keep paying your Account Total New Balance and interest can still be avoided. Still, the psychology is different: instead of requiring full payment unless borrowing is deliberately enabled, Amex will make revolving credit the default permanent option.

Personally, I would keep using these cards the same way: earn the points, use the benefits, and pay the balance in full.

Would you prefer to have Pay Over Time available, or should Amex keep the option to disable it? Share your thoughts in the comments.