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Need explanation on Amex payment on the green card

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Frequent Contributor

Need explanation on Amex payment on the green card

The person I know got 2 weeks ago the green card and has a balance and today he made a charge that took a to over thousand dollars balance so he got this email
👇🏻

We recently approved a transaction on your account. However, it is important that you make a payment on your account soon to continue to enjoy uninterrupted use of your Card.

What is that means since he doesn’t have a payment due yet?

Also you got a different email of any amount of over $1000 will have to be paid in full
Which we know it’s a charge card


An important reminder about spending over your
Pay Over Time Limit.

We are sending you this notice because the transaction below caused your balance to exceed your Pay Over Time Limit. As a result, this transaction will be due in full on your next billing statement.








BEDBATHANDBEYOND COM



$304.77










Pay Over Time Limit



$1,000.00










Balance*



$1,178.00



*Includes charges approved but not yet posted

You may continue to spend on your account. However, please keep in mind that any future transaction that causes your total balance to exceed your Pay Over Time Limit will be due in full.

Charges that do not cause your balance to exceed your Pay Ove

Does this mean the limit is 1000$ and they still approve over charge ?
Message 1 of 11
10 REPLIES 10
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Frequent Contributor

Re: Need explanation on Amex payment on the green card

It's all internal stuff with Amex. They've internally qualified your friend a Pay Over Time limit of $1000. Any spending over that $1000 will be due in full by the next payment date. So, if $1600 is spent & reported on the statement, the amount due on the next payment date would be $600 (amount over $1000) plus whatever the minimum amount due on the qualifying $1000 Pay Over Time charges. I believe that is correct....at least I hope my description is.

Message 2 of 11
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Frequent Contributor

Re: Need explanation on Amex payment on the green card

So this is why he gets This email to pay it now wen it’s not even due yet for whatever he was over the $1000
I guess maybe


This is the email
Dear ******

We recently approved a transaction on your account. However, it is important that you make a payment on your account soon to continue to enjoy uninterrupted use of your Card.

We provide many convenient ways to pay:

Make a payment at americanexpress.com/pbc and then enroll in
Message 3 of 11
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Community Leader
Senior Contributor

Re: Need explanation on Amex payment on the green card

Here’s how it works:

Pay Over Time allows a card member to put charges over $100 into a revolving category on the charge card. At the end of the month, what is due is the entire balance of charges that are not in POT, plus some portion of the POT balance, with the remainder of the charges in POT accruing interest and revolving into the next statements.

Amex will give a limit as to how much they’ll allow a user to have in POT. For your friend, they were willing to allow up to $1000 of charges over $100 each to go into it. Your friend exceeded that POT limit, so in addition to their normal charges due at the end of the month, the portion of POT charges over the $1000 limit must also be paid, as well as any further $100+ transactions until the POT balance is paid down. Amex isn’t willing to allow your friend to put additional purchases into POT to revolve them, so they’ll have to be paid off before POT can be used again.

My Gold card has a $15k POT limit. If I charge $1500 in various smaller purchases and $500 at Best Buy for a TV, I will owe the $1500 in smaller (less than $100 per) purchases, plus a portion of the $500 TV purchase on the due date, since the TV’s $500 cost will go into my POT bank. The remainder of that POT valance will be subject to interest charges and chipped away at over a period of months.

Does that clarify it somewhat?


Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $95,400 | Agg. Util under 5%
Message 4 of 11
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Frequent Contributor

Re: Need explanation on Amex payment on the green card

Thanks of clarify
So that means the he can still do charges now until the minimum due but This Chargers He does now won’t go into the POT category unless he pays the over POT limit amount he was over now

Does with time the POT limit get increased?
Message 5 of 11
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Community Leader
Senior Contributor

Re: Need explanation on Amex payment on the green card


@Jccflat wrote:
Thanks of clarify
So that means the he can still do charges now until the minimum due but This Chargers He does now won’t go into the POT category unless he pays the over POT limit amount he was over now

correct - he's maxed out the POT limit and can't defer anything else with it until he makes room, so all further charges will be due at the end of the billing cycle

Does with time the POT limit get increased?

it can be at Amex's discretion - it has happened for others

 



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $95,400 | Agg. Util under 5%
Message 6 of 11
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Frequent Contributor

Re: Need explanation on Amex payment on the green card

Thanks
I guess the gold Amex has a higher POT limit than the green ?
Message 7 of 11
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Community Leader
Senior Contributor

Re: Need explanation on Amex payment on the green card

I think it's more profile- and history-dependent than anything else. I have $15k, but I've seen from $10k to $35k on Gold and Plat. I don't think they tier it based on the card since they aren't different "levels" of the same card, they have different intended audiences.



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $95,400 | Agg. Util under 5%
Message 8 of 11
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Senior Contributor

Re: Need explanation on Amex payment on the green card

IDK, the wording to me appears as if this person has reached their internal limit. And perhaps Amex wants the card paid down, to be able toi keep using it? Although that sounds more like a revolver than a charge. But we know from past DP's that some account sdo haev lower spend limits on Charge Cards. 

 

Maybe OP should call Amex to confirm exactly what the is going on.






Message 9 of 11
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Community Leader
Senior Contributor

Re: Need explanation on Amex payment on the green card

Reading back through the two emails, it seems to be both actually, that POT is over max and won't continue until it's paid, and also that a payment is needed to continue use of the card.

 

OP, is your friend new to Amex? If so, running over a thousand dollars in the first two weeks may be pushing it with no payment history. Your friend should do as @Janus suggests and call in to clarify with a CSR exactly what Amex would like to see, and also make a good-size payment to them to show good intent and ease any fears they may have that he is overspending his means.

 

Easing into a relationship with a new lender is never a bad idea. My first couple months I spent less than $500 per month on my Gold, and then started increasing. My payment this month that's due 12/2 is $1564, and yet I'm able to use my card freely - I eased into the Gold and its usage as it's my first charge card with Amex, although I do have a year with them as a revolver cardholder, and I'm sure that history helps too.



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $95,400 | Agg. Util under 5%
Message 10 of 11
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