This innovative credit card installment plan helps Cardmembers better manage their big-ticket purchases
TORONTO, Nov. 1, 2016 /CNW/ - American Express Installments launched today, giving Cardmembers the control, convenience and flexibility to use this built-in feature of their credit card to pay for their larger purchases in equal monthly installments.
"We designed this feature with our customers' needs at the core," said Aileen Kheraj, Vice President, Lending Products & Partnerships, American Express Canada. "Whether our Cardmembers are getting married, planning a trip, starting a family or renovating their home, our research shows that they could definitely use this type of solution when managing larger purchases."
Today, almost half (47%) of Canadians say they have trouble saving for large purchases, according to a recent omnibus survey conducted by American Express. Over the next year, many Canadians are planning to travel (47%), move or conduct renovations (29%), or buy expensive electronics (21%), and 42 per cent of these people say they prefer to pay for large purchases over time.
To help Canadians better manage their upcoming purchases, American Express Installments will give Cardmembers the ability to pay for large purchases in equal monthly installments, while still earning rewards points. Instead of being charged interest common on credit card balances, they are charged a small fee based on the length of the installments they choose.
"With Installments we put the Cardmember in control of their finances. Customers have certainty over when their purchase will be paid off, they will always know the total cost including any fees, and can cancel the installment at any time," said Kheraj.
Eligible customers have the ability to enrol in this feature and set their preferences. Here's how it works:
- Select a minimum purchase amount of $250, $500 or $1,000. Eligible purchases over the chosen amount will automatically be set up as installment plans in the program;
- Select a repayment term of 3, 6 or 12 months;
- Make a purchase over your selected minimum purchase amount on your existing Card.
Installment plans have a small fee of 2% to 5%, based on the length of the term selected. For instance, if an enrolled Cardmember purchased a new piece of furniture for $600, here's what they would owe depending on their chosen repayment plan:
- 3 months - Total Installment Fee of 2% on $600 purchase equals $12
- Cardmember pays $204 per month for 3 months, for a total cost of $612
- 6 months - Total Installment Fee of 3% on $600 purchase equals $18
- Cardmember pays $103 per month for 6 months, for a total cost of $618
- 12 months - Total Installment Fee of 5% on $600 purchase equals $30
- Cardmember pays $52.50 per month for 12 months, for a total cost of $630
The option is easy-to-enroll in and customers can manage their installments through the Amex mobile app or online account.
From September 12th to September 13th 2016 an online survey was conducted among 1,522 randomly selected Canadian adults who are Angus Reid Forum panelists. The margin of error—which measures sampling variability—is +/- 2.5%, 19 times out of 20. The results have been statistically weighted according to education, age, gender and region. Census data to ensure a sample representative of the entire adult population of Canada. Discrepancies in or between totals are due to rounding.
About American Express in Canada
American Express in Canada operates as Amex Bank of Canada and Amex Canada Inc. Both are wholly owned subsidiaries of the New York based American Express Travel Related Services Company, Inc., the largest operating unit of the American Express Company. Amex Bank of Canada is the issuer of American Express charge and credit cards, with outstanding products like The SimplyCash™ Card from American Express ©, The American Express® Gold Rewards Card, and the American Express® AeroplanPlus® Gold Card. American Express opened its first offices in Toronto and Hamilton in 1853. For more information, visit AmericanExpress.ca or connect with us at Facebook.com/AmericanExpressCanada and YouTube.com/AmericanExpressCAD.
SOURCE American Express Canada
For further information: please reach out to: Raneal Engineer on behalf of American Express, [email protected], 416-644-2263.