There are American Express charge cards and American Express credit cards.
The charge card gives you an unsecured line of credit that you must pay off in full every month and requires an annual membership fee of $50.
Do you have to pay American Express balance every month?
You don’t have to pay off all American Express cards every month. Most Amex credit cards allow you to carry a balance from month to month, requiring only a monthly minimum payment to keep your account in good standing.
Do you have to pay off American Express Platinum every month?
Amex Platinum is a charge card, which means you’ll have to pay the balance in full every month. Plus it has a $550 annual fee. So you need to make sure you’ll get your money’s worth from its travel perks before you apply.
What happens if you don’t pay your Amex charge card in full?
With AmEx charge cards, if you fail to pay your required monthly balance in full, you will incur a late fee, which can be as bad as credit card finance charges. With a charge card, you have to pay the whole balance to avoid a late fee. That makes charge cards less flexible when it comes to making payments.
How does American Express payments work?
When a customer uses an American Express card to make a purchase, the store or company where the purchase is made sends the transaction directly to American Express. The store is then paid directly by American Express for the amount charged by the customer, minus any processing fees incurred by the store.