How to Convert Credit Card Payments to EMI with American Express

Wondering how to convert credit card payments to EMI using American Express? As a credit card expert, I’ve examined this useful feature. This article will guide you through the process of converting your credit card payments into EMIs with American Express, providing easy-to-follow steps to enhance your financial planning.

How to Convert Credit Card Payment to EMI with American Express

To convert credit card payments to EMI with American Express, you have two convenient options: pre-purchase and post-purchase. Let’s break down each method so you can choose what works best for you.

A phone and three credit cards placed against the wall

Pre-Purchase EMI

When I’m about to make a purchase, and I know I want to spread out the payments, the pre-purchase EMI option is super handy. Here’s how it works:

In-Store Purchases: Before you make the purchase, just ask for the EMI option at the Point of Sale (POS). It’s that simple.
Online Shopping: During checkout, when you reach the SafeKey OTP screen, select the EMI option. This way, your purchase is directly converted into EMI immediately.

Post Purchase EMI

Sometimes, I decide to convert a purchase into EMI after making it. American Express makes this easy too. Here’s what you can do:

Through SMS: Send a text from your registered mobile number with the format: EMINOW <Amount> Transaction Date <DDMMYY> Merchant Name <XXXX> EMI Tenure <3/6/9/12/18/24> to 5616166.
Online Form: Visit the official American Express website and fill out the EMI conversion form.
By Email: You can also send an email to [email protected] with your transaction details and preferred EMI tenure.

Are There Additional Charges for Converting Payments to EMI?

When it comes to converting payments to EMI on your American Express card, it really depends on the type of EMI you choose. If you opt for the No Cost EMI option, available through certain merchants, there are no additional charges – you just pay the principal amount over the chosen tenure. It’s a great deal, especially for bigger purchases like furniture items or expensive pieces of jewelry, where you want to avoid extra costs.

However, there might be additional charges for standard EMI conversions that aren’t part of the No Cost EMI scheme. These could include interest or processing fees, varying based on the tenure and amount of the EMI. It’s always a good idea to check the specific terms and conditions for the EMI option you’re considering, so you know exactly what the conversion will cost you.

What Are the Fees and Charges for American Express® Credit Card EMI?

When you’re considering converting your American Express® card purchases into EMIs, it’s important to be aware of the various fees and charges that apply. These can vary depending on whether you opt for pre-purchase or post-purchase EMIs. Let’s break down what each option entails:

Pre-Purchase EMIs

When opting for pre-purchase EMIs with your American Express® card, you’re looking at a cost-effective way to manage your payments. Here are the specifics:

Processing Fee: Good news here – there’s no processing fee for pre-purchase EMIs.
Interest Rate: The interest rate is set at 14% per annum, which is about 1.17% per month.
Foreclosure Charges: Another plus – there are no foreclosure charges if you decide to pay off your EMI early.

Post Purchase EMIs

For post-purchase EMIs, there are some additional costs to consider, yet they still offer a flexible way to handle larger expenses. Here’s what you need to know:

Processing Fee: For post-purchase EMIs, there’s a 2% processing fee on the transaction amount.
Interest Rate: The interest rate is slightly higher at 16% per annum, or 1.33% per month.
Foreclosure Charges: Just like with pre-purchase EMIs, there are no charges for early foreclosure.

What Is the Eligibility Criteria for American Express® Credit Card EMI?

If you’re considering converting your purchases into EMIs with an American Express® credit card, knowing if your card is eligible is important. Not all Amex cards offer this facility – American Express Charge Cards, for instance, are excluded. However, if you have one of the select cards like the American Express SmartEarn Credit Card or the Platinum Travel Credit Card, you’re in luck.

Here’s a quick rundown of the eligibility criteria:

A man holding a credit card while a laptop is on a table

Eligible Cards: The EMI option is available on specific cards, including the American Express Membership Rewards Card and the American Express Platinum ReserveSM Card.
Minimum Transaction Amount: Your purchase needs to be Rs. 5,000 ($60) or more to qualify for EMI conversion. However, for Amazon purchases, the threshold is lower at Rs. 3,000 ($36).
Timing of Conversion: You must opt for EMI conversion before the payment due date of the statement that includes the transaction.
Excluded Categories: Transactions in certain categories, like gold and jewelry, aren’t eligible for conversion into EMIs.
Transaction Limit: Eligible cardmembers can convert up to 6 transactions into EMIs, as long as it’s within their credit limit.

Conclusion

In this guide, I’ve explained how to convert credit card payments to EMI with American Express, outlining pre-purchase and post-purchase options along with their respective fees and eligibility criteria. Additionally, I’ve covered how Amex calculates interest, helping you make informed decisions about your card expenses.