How Credit Cards Work

Understanding American Express Credit Cards – Useful Terms

• Statement period: The period in which the transactions reported on your statement relate to. The number of days in each statement period varies and will be 28, 29, 30 or 31 depending on the number of days in the calendar month in which the billing period ends (which is the closing date on your statement).
• Interest: When you use your Credit Card, you will be charged interest unless you repay the full closing balance by the Payment Due Date shown on your statement. Interest will be expressed as an annual percentage rate.
• Interest grace period: Interest will not be charged on purchases and you will have an interest grace period for purchases of 21 days from the closing date on your statement. Except for Quebec residents, even if we receive payment in FULL of the new balance shown on your most recent statement, you will still be charged interest on all previously billed and unpaid purchases (if any) up until the date that we receive payment in FULL of that statement. Payment in full means payment of the total new balance shown on your statement which is made up of all charges to your account (including purchases, funds advances, balance transfers and Amex cheques, fees and other charges) up to the closing date.If we do not receive payment in full by the payment due date, the grace period on your next statement will be extended to up to 25 days. The specific due date will be shown on your statement. Interest will be charged on any previous balances during this period. The grace period will revert to 21 days on the next statement after we receive payment in full.If the due date falls on a weekend or Canadian federal or applicable provincial holiday, if we receive payment in full by the next business day, you will still have an interest grace period for purchases as set out in this section.
• Credit limit: A Credit Card limit is set when you’re approved for a Credit Card and is the maximum amount which can be outstanding at any time on your account (including use by any supplementary cardmembers).
• Annual fee: An annual Credit Card fee is a fee paid once per year. Not all Credit Cards have an annual fee and American Express offers a range of no annual fee Cards. An annual fee is however charged on some Cards that provide richer rewards, features and benefits.
• Membership Rewards®: If you choose a Card that earns Membership Rewards points, you can simply charge your everyday purchases or business expenses to your Card and your points will add up quickly. Your points give you access to a wide range of exciting rewards. You can enjoy a selection of top-brand merchandise, redeem points for statement credits, shop with points at Amazon.ca or Ticketmaster.ca, redeem points for your next travel adventure, and so much more!

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