Amex adds forbearance for business card customers
With many small US businesses reeling under the impact of the pandemic, American Express is trying to help keep them afloat – and prevent a spiral in customer delinquency rates. The card giant announced the rollout of an option which will help its small- and medium-sized business to have Pay Over Time on their Green, Gold and Platinum Business Cards which will start at their November billing cycle.
Speaking at an investor conference in June, AmEx CFO Jeff Campbell said, “we have swung into place very quickly a variety of what we call ‘customer pandemic relief programs’ to help those consumers and small businesses who need a little bit of temporary help in terms of managing their finances”.
According to the Vice President of global commercial card lending at American Express, Brett Sussman, the latest move will help businesses with “the flexible solutions they need to easily and efficiently manage payments and cash flow”. The plan will be applicable to existing as well as new users.
This option will allow businesses to either carry a balance with an interest on purchases with $100 or more or they can pay the balance in full. The cardholders have an option of switching this on or off at their end which will give them greater control.
While this option was already in existence and had been opted into by 55% of existing Business Card Members, AmEx said in its press release that this will now be available from day one.