Terms and Conditions
You have requested that all eligible purchases of $%IOLET_SpendTheshold% or more charged and posted to your account between %IOLET_PromoStartDate% and %IOLET_PromoEndDate% be automatically set up in the American Express Installment program. The purchases will be payable over %IOLET_Duration% equal monthly installments with a %IOLET_Fee%% fee and an interest rate of 0%. The fee is spread out over the repayment period and interest will remain at 0% for each qualifying purchase as long as it continues to participate in the program.
Once enrolled, qualifying purchases charged to the Basic or associated Supplementary Card(s) during the offer period will participate in the program.
What does it mean to participate in the program?
Once you choose your dollar threshold, repayment period and fee, all qualifying purchases that are made and which also post to your account during the offer period will automatically be placed in the program. There is no requirement to take any additional steps. Purchases that participate in the program are not charged interest as long as they continue to participate in the program. Instead, you will be required to repay the amount of the qualifying purchase plus the associated installment fee in accordance with the next two sections.
Calculating the monthly installment amount:
For each qualifying purchase, we will calculate how much you have to pay to us each month as follows: (i) we will calculate the total fee by multiplying the purchase amount by the fee percentage. If the calculation of the total fee results in an amount that includes a fraction that is less than one cent, we will round up to the next cent from and including $0.005 and round down if less than $0.005; (ii) we will then add the total fee to the purchase amount to get the total obligation; and (iii) to get the monthly installment amount (principal and fee), we will divide the total obligation by the number of months in the repayment period. If the monthly installment amount includes a fraction of a cent, we will always round up to the next cent.
The monthly installment amount will be the same each month during the repayment period, subject to minor adjustments in the final month of the repayment period. These adjustments are to ensure the correct amount of principal and fee is paid after amounts are rounded to allow for equal payments. In the first month, the full amount of the installment will be applied to principal. In the second month you will be required to pay the fee for both months #1 and #2 and the amount of principal will be reduced to keep the installment payment the same.
The following is a simple example where there is no need for rounding or for adjustment in the final month of the repayment period. If the purchase amount is $1,200, the repayment period is 6 months and the fee is 3%, your monthly installments will be calculated and billed as follows:
$36 fee($1,200 x 3%)
$1,236 total obligation($1,200 + $36)
$6 monthly fee
($36 / 6 month repayment period)
$206 monthly installment
($1,236/ 6 month repayment period)
Monthly installment (inclusive of fee) = $206
Month 1: $206 (all principal)
Month 2: $206 ($194 principal + $6 [fee for month 1] + $6 [fee for month 2])
Month 3: $206 ($200 principal + $6 [fee for month 3])
Month 4: $206 ($200 principal + $6 [fee for month 4])
Month 5: $206 ($200 principal + $6 [fee for month 5])
Month 6: $206 ($200 principal + $6 [fee for month 6])
Total: $1,236 ($1,200 principal + $36 fee)
When do installments have to be repaid?
The first installment will appear on the first monthly billing statement after a qualifying purchase posts to your account. Installments will then be billed each month for the duration of the repayment period applicable to each qualifying purchase.
How will this affect the minimum payment due?
The installment amount for all qualifying purchases will be a required part of your minimum payment amount each month and will have to be repaid by the payment due date. Each time a new qualifying purchase participates in the program, it will cause your minimum payment amount to increase more than if the purchase was not participating in the program. You are responsible for managing your monthly payment obligations and for keeping your card account up to date.
What if the minimum payment amount isn’t paid on time?
If we don’t receive at least the minimum payment amount by the date of the next billing statement, you will be considered to have had a missed payment. If you have a missed payment, the program will terminate and all deferred amounts (for all purchases that are then participating in the program) will be subject to interest charges at the rate then applicable for purchases, in accordance with the information box and disclosure statement. Purchases that post to your account after the missed payment will not qualify for participation in the program. Having a missed payment may result in other consequences outside the program. Please see your Cardmember agreement for details.
What are deferred amounts?
Remaining balances (also known as deferred amounts) are the amounts that are participating in the installment program but which are not yet due. When a purchase participates in the program, the entire amount of that purchase starts out as a deferred amount. With the billing of each monthly installment, the deferred portion is reduced by the amount of the principal that was included with that installment. Using the above example where the purchase amount was $1,200, the deferred amounts are as follows:
After the first billing statement: $994
After the second billing statement: $800
After the third billing statement: $600
After the fourth billing statement: $400
After the fifth billing statement: $200
After the sixth billing statement: $0
How do deferred amounts impact my available credit?
Deferred amounts aren’t considered to be due and owing and no interest is charged as long as such amounts continue to participate in the program. Deferred amounts do, however, reduce the amount of credit available to you.
What if I pay more than the minimum payment amount?
If you pay more than the minimum payment amount, any additional amounts you pay will be applied toward remaining balances on your account in accordance with the "Allocation of Your Payments" section of your cardmember agreement. Deferred amounts are not yet due, so no amount will be applied toward their repayment. If you pay more than the total amount due in a given month (excluding deferred amounts) you could end up with a credit balance on your account.
Can I take a purchase out of the installment program?
Yes. You can remove any or all qualifying purchases from the program by calling us at the number on the back of your card and providing us with instructions. Once you remove a purchase from the program: (i) all deferred amounts related to that purchase will no longer be considered as deferred and will therefore be due and owing as if they were ordinary purchases on your account; (ii) you will no longer pay a monthly fee amount for that purchase; (iii) you will be credited for the last monthly fee you were charged for that purchase; (iv) subject to any applicable interest-free grace period, interest will be calculated on the remaining balance of that purchase from the date it is removed from the installment program; and (v) once removed from the program, the remaining purchase amount can be paid in full at any time by paying your total balance.
Can I pay a deferred installment early?
No. You have to first remove the qualifying purchase from the program. Please see the previous paragraph for details.
What happens if I make a qualifying purchase and then later return that item to the merchant?
If you return a purchase that was participating in the program, any credit you receive will be applied to your account in the ordinary course. See the section of your cardmember agreement titled "Allocation of Your Payments" for details. Credits 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 you have no other charges against which the amount could be applied, your account could end up with a credit balance. If you have a credit balance at the same time deferred amounts are still on your account and you would like to apply the credit balance against such deferred amounts, you will have to remove one or more purchases from the program. Please see the above two sections for information on how that can be done.
Additional information about the installment program:
We may, without notice, restrict: (i) the total number of qualifying purchases that are eligible for participation in the installment program; and (ii) the total dollar amount you can have participating in the installment program to a maximum percentage of your credit limit
We will email you a confirmation for each new qualifying purchase that is approved for participation. If you do not receive an email confirmation, please contact us at the number on the back of your card or log in to your account online if you want to know whether or not a specific purchase is participating in the program.
In order to participate in the program, you are required to provide us with an email address we can use to send you important details about the program. We will also use your email address to send you other communications in support of servicing your account. It will not be used for any other purpose unless you have specifically provided us with authorization to do so.
The following transactions are not considered purchases and will not qualify for the program: funds advances, fees, balance transfers, Amex cheques and charges for travellers cheques and foreign currencies.
Whether or not a purchase qualifies for the dollar threshold you choose at enrollment will depend on the final Canadian dollar amount posted to your account.
Example 1: a $US 900 transaction that posts to your account as $CAD 1,050 (inclusive of foreign exchange and foreign currency conversion fee) will count as $1,050, not $900.
Example 2: a merchant may process a charge to your card as a single purchase or as multiple smaller purchases based on shipment dates, on individual travel tickets or for any other reason. A purchase for $1,200 that is divided by the merchant into three purchases of $400 each will count as three separate $400 purchases, not as a single $1,200 purchase.
The program only applies to the account indicated. We reserve the right to withdraw this offer if your account is not in good standing, we become aware of any adverse credit information or for any other reason at our sole discretion. We are not responsible for enrollment delays or systems unavailability.