Plan It™ Terms and Conditions

The below terms and conditions are an extract from your Cardmember Agreement section titled “American Express Installment Program”. This is meant to be read in conjunction with the full Cardmember Agreement.


Plan It - The American Express Installment Program


We may permit you to participate in Plan It – the American Express Installment Program which allows you to repay certain balances over time, in equal installments, subject to the conditions set out in this section. Additional terms, including the specifics of a particular offer, will be provided to you if applicable. All such additional terms are deemed part of this agreement. 


For the purposes of this section:


installment plan means the repayment plan applicable to each balance you move from your account’s purchases category to the installment program. You may have several installment plans active at the same time, all of which being part of the installment program;


installment program means the feature on your account that permits you to create one or more installment plans. The installment program is a way in which you can access the existing credit limit on your account and is not a separate loan or account;


monthly installment fee means the fee we charge each month for each separate installment plan, calculated in accordance with the section below titled ‘Calculation of the Monthly Installment Fee’; 


original balance means, for each new installment plan you create, the initial principal amount you move from your account’s purchases category to the installment program. It is this original balance, together with all applicable monthly installment fees, that has to be repaid over the repayment period;


repayment period means the term, in months, over which you are required to repay each installment plan. Different installment plans may be created at different times and may have different repayment periods.


How Do You Participate?


We may allow you to create one or more installment plans in order to participate in the installment program. Your ability to create each new installment plan will depend on an assessment of eligibility made at the time you seek to create an installment plan. In order to be eligible, you must either: (i) have at least one new purchase appearing on your current statement; or (ii) have at least one purchase that has posted to your account but has not yet appeared on a statement. Prior months’ balances that have carried over are not eligible. Similarly, balances related to funds advances and balances at special rates of interest will also not be eligible unless we make a specific offer to you. We may also limit or otherwise restrict your ability to move balances to the installment program based on your account’s available credit or for any other reason.


We may also restrict your ability to create new installment plans at certain times.  For example, for new balances appearing on a statement, you will typically be restricted from creating a new installment plan each month from your payment due date until the end of the billing period. For balances that have not yet appeared on a statement, you will be restricted from creating a new installment plan each month on the last day of your billing period.


When you create a new installment plan, you will be required to choose: (i) a dollar amount (which may or may not refer to a specific purchase) to move to a new installment plan (this amount is the original balance); and (ii) a repayment period. You will be required to repay each installment plan in accordance with its terms.


Monthly Installment Amount and Monthly Installment Fee


Calculation of the Monthly Installment Fee


When you create an installment plan, you will be charged a monthly installment fee.

The monthly installment fee is calculated by first multiplying (A) the original balance with (B) the monthly installment fee percentage, which is disclosed to you in the Information Box and Disclosure Statement and specified in an offer we make to you with (C) the number of months in the repayment period. Then, this total fee amount (A x B x C) is rounded up or down to the nearest $0.01. The monthly fee is calculated by taking the total fee amount after rounding and dividing by the number of months in the repayment period. This amount is then rounded up to the nearest $0.01.


The following example, for illustrative purposes, assumes an original balance that has been billed to your current statement (A) of $1422.00, a monthly fee percentage (B) of 0.90% and a repayment period (C) of 12 months. 


     Ax B x C = $1422.00 x 0.0090 x 12 = $153.576, rounded up to $153.58

    monthly installment fee: $153.58/12 = $12.798, rounded up to $12.80


Calculation of the Monthly Installment for Balances that are on the Current Monthly Statement


The monthly installment amount for each new installment plan created is calculated by (i) adding the original balance to the total fee amount after rounding; (ii) dividing that number by the number of months in the repayment period; and (iii) rounding the total up to the nearest $0.01. Continuing from the previous example:


Original balance: $1422.00

Total fee over the repayment period: $153.58 

Add the total fee over the repayment period to the original balance amount: $153.58 + $1422.00 = $1575.58

Divide by the number of months in the repayment period: ($1575.58 / 12 = $131.298)

Round up the total to the nearest $0.01: $131.30


Months #1 to #11: $131.30 ($118.50 principal + $12.80 fee)

Month #12: $131.28 ($118.50 principal + $12.80 fee - $0.02 [adjustment from rounding fee in earlier months])

Total: $1575.58 ($1422 principal + $153.58 fee)


Calculation of the Monthly Installment for Balances That Have Not Yet Appeared on a Statement


When creating  an installment plan for purchases that have not yet appeared on a statement, the first month’s installment amount due will be applied in full towards the principal. In the second month you will be required to pay the fee for both months 1 and 2 and the amount of the principal will be reduced to keep the installment payments the same. See below for example:


Original balance:  $1422.00

Total fee over the repayment period:  $153.58

Add the total fee over the repayment period to the original balance amount:  $153.58 + $1422 = $1575.58

Divide by the number of months in the repayment period: ($1575.58/ 12 = $131.298)

Round up the total to the nearest $0.01:  $131.30


Month #1: $131.30 (all principal)

Month #2: $131.30 ($105.70 principal + $12.80 [fee for month 1] + $12.80 [fee for month 2])

Months #3 to #11: $131.30 ($118.50 principal + $12.80 fee)

Month #12: $131.28 ($118.50 principal + $12.80 fee - $0.02 [adjustment from rounding fee in earlier months])

Total: $1575.58 ($1422 principal + $153.58 fee)




The monthly installment amount will be the same each month during the repayment period, subject to minor adjustments in the final month. These adjustments are to ensure the correct amount of principal and fee is paid after amounts are rounded to allow for equal payments.


Total Cost to You


When you add the total of the monthly installment fees you will pay for any installment plan over the repayment period, the amount will be approximately the same as if you had repaid the original balance at the interest rate applicable to purchases, assuming repayment over the same time period. If an offer is made to permit an installment plan at a special rate, the total monthly installment fees payable over the repayment period will be less than the interest that would have been payable, assuming repayment over the same time period.


The chart below compares: (i) repayment of $1422.00 under the installment program; and (ii) repayment of $1422.00 at a Preferred Rate for Purchases of 20.99%.


Calculation of interest for the purpose of this chart assumes: (i) repayment on the payment due date over twelve monthly billing periods; (ii) no other transactions on the account; (iii) repayment of the same principal amount each month, together with interest on the declining balance; and (iv) interest is not charged for any period before the first day of the billing statement on which the purchase first appears.


Calculation of the installment program fee assumes: (i) repayment each month of the required installment on the payment due date; (ii) no early repayment or missed payments.


This comparison is for illustration purposes only and is intended to show that the cost to you of participation in the program is comparable to repayment outside the program, assuming the same repayment term. Your actual Preferred Rate for Purchases and your actual monthly installment fee may be different. 


Installment Balance Carried at Preferred Rate for Purchases
Monthly Fee % 0.90% Annual Interest Rate 20.99%
Total Fee $153.58 Total Interest $153.98


Using the same assumptions as before, the effective Annual Percentage Rate (APR) is set out in the chart below. The APR that applies to your account will depend on the monthly fee that is disclosed to you prior to creating an installment plan. The effective APR calculation does not include interest charged on the original balance in cases where the remaining balance is not paid in full by the payment due date. Any reference to an APR is for illustration purposes only and is intended to provide greater transparency regarding the cost of participation in the installment program. In fact, you are charged a fee, not interest when you participate in the installment program.


Monthly Installment Fee Effective APR
0.38% 8.42%
0.51% 11.30%
0.85% 18.83%
0.90% 19.94%


Repayment of Installment Plans


The first installment will appear on the first monthly billing statement after you successfully create a new installment plan. Installments will then be billed each month for the duration of the repayment period applicable to each installment plan. Installments for each active installment plan will include both the applicable principal and fee amount and together will be billed as a required part of your minimum payment amount each month. Please see section titled “Monthly Installment Amount and Monthly Installment Fee” to learn more about how principal and fees are billed for installment plans.


You are not permitted to make additional payments toward future installments that are not yet due. Additional payments will be applied to your account in accordance with the procedure set forth in the section titled "Allocation of Your Payments", and if there are no remaining balances to which the payment can be applied, your account will have a credit balance for the difference. In order to repay an installment balance early, you have to remove the installment plan from the installment program. Please see the section titled “Cancellation and Removal of Installment Plans” for details.


If you return or dispute a purchase, any credit you receive will be applied to your account in the ordinary course. Credits or disputed balances will not result in all or even a portion of the program being paid off or cancelled, nor will it stop any installment fees from being billed. If there are no remaining balances against which the amount could be applied, your account could end up with a credit balance.


Each time a new installment plan is created, it will cause your minimum payment amount to increase more than if the original balance had not been used to create a new installment plan. Please see the “Minimum Payment” and “Allocation of Your Payments” sections for details regarding your minimum payment amount.


Cancellation and Removal of Installment Plans


If we don’t receive at least the minimum payment amount by the date of the next billing statement, all installment plans that are then active will be automatically cancelled. You may choose to remove any installment plan from the installment program at any time by calling the number on the back of your card, through online services, or by any other method we may permit from time to time.


Where an installment plan is cancelled or removed from the program prior to the end of the repayment period, all remaining balances that were part of the installment plan will be subject to interest charges at the rate then applicable for purchases, in accordance with the Information Box and Disclosure Statement. Subject to any interest-free grace period that may apply, interest will be charged as of the first date of the billing cycle following cancellation or removal from the installment program.


Effect of Installment Plans on Grace Period


If you move a balance to the installment program, you are still eligible for a grace period on both the original balance and other new purchase balances if you otherwise meet the requirements set out in this agreement. You must make a payment in FULL of the remaining balance (balance left after the original balance is moved to the installment program) by the payment due date or you will be charged interest on the original balance. The requirement to make payment in FULL to benefit from a grace period on the remaining balance does not include a requirement to pay balances in the installment program that are not yet due. Please also see the section titled “Interest” for details on how to make a payment in FULL.


If an installment plan is cancelled, any balance moved back to your purchases balance will be considered a new purchase and subject to the terms of this agreement, could be eligible for a grace period. The applicable interest rate will be the rate then in effect for purchases as disclosed in your Information Box and Disclosure Statement and not any promotional rate that may otherwise apply to your account.