What happens if Amex account is overpaid?

Lthermite81 on 20/04/2023 - 17:10
Last edited 20/04/2023 - 17:27 by 1 other user

Does anybody with an amex card know what happens if/when the card is overpaid? Or if it is overpaid and it is used to purchase something, is the overpaid balance applied to the available balance immediately or does this take some time?

For context: I recently signed up for an amex airpoints card to make use of the travel insurance. For the insurance to be valid the flights must be paid in full with the card. When I signed up I was assigned a limit by default. The flights I need to by are more than the limit, making it very tricky (or near impossible) to access the insurance.

Any suggestions on ways to make this work much appreciated, I feel like I've tried most options, but am reluctant to pay for separate insurance if I can help it…

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  Alan6984 on 20/04/2023 - 17:36

  Whilst I don't have an Amex any more, from what I recall, if you paid, say, $10,000 onto the account (and assuming no other transactions around the same time), it just means that whatever credit you had available the day before, you now have that plus $10,000 available.

  If your credit limit (overall) is $50,000 and you had nothing owing, then the $10,000 payment would put you $10,000 in credit, and you would be able to spend $60,000 on one (or multiple) transactions at that point.

  I can't recall how long it took to show up, but I'd be surprised if it was more than a day.

  If you want to be sure, call them and ask?

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    ace310 on 20/04/2023 - 19:32

    This is true for most cards but not for all. Westpac hotpoints cards allow this, and I have done it many times to buy big ticket items or airline tickets. Same didn't work for Q card. I asked them and they actually refunded me the balance back. They didn't increase the credit limit.

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      Alan6984 on 20/04/2023 - 20:40

      Not sure if you meant what you wrote, but what I posted above does not 'increase the credit limit' - it is still exactly the same after you make a payment onto the account, its just that the account balance is now in credit.

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        ace310 on 20/04/2023 - 21:11

        Sorry. I meant the available amount is more

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          Alan6984 on 20/04/2023 - 21:28

          @ace310: I think Q-Card is on the 'personal loan' side of the credit card spectrum, so that might explain it.

          I might be wrong, but I don't think Q-Card is accepted as Visa / Mastercard or similar? I know that when we took a variety of cards around ten years ago, Q-Card was not possible then, but it might have changed since then.

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  doggos2 on 20/04/2023 - 19:31

  It definitely works for a credit card, I can do a cash withdrawal with no interest when it's in credit. It should extend your credit. But definitely call them to check

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  Kiwi on 20/04/2023 - 19:37

  You can contact Amex and ask if they can extend the limit temporarily to allow the purchase, they've done that for me in the past. "I've got the money and can transfer it into the account, but I need to make this purchase that is over the limit". That would also mean you wouldn't have to wait X days for it to get into your account.

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  gooddeals on 20/04/2023 - 23:20

  I have done it in the past, works ok, as long as the timing is good… so deposit your money, money shows up at Amex account, and then pay for whatever your need right away.. or else if you leave your credit there for a while you probably get a phone from Amex and asking you to refund the money back to you.

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  Madao on 21/04/2023 - 07:54

  Side note related to the Amex Platinum Charge at least, Travel Insurance cover doesnt apply in full to secondary cardholders so bear this in mind. From my discussion with them last year they also dont cover COVID. We ended up getting seperate insurance and probably will do again for an upcoming holiday next month.

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    Jizah on 21/04/2023 - 07:59

    Yeah it's pretty poor comparatively. We end up buying some flights on another credit card to ensure both people are covered.

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      Madao on 21/04/2023 - 08:07

      I used this as leverage when my AF was due, no reducton in fee but a significant number of reward points added to my account

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  moxpearl on 21/04/2023 - 08:40

  I do all my spending on my Amex (Platinum Airpoints) and it's never actually been in debt (Eg it's always been overpaid).

  Eg I have a $10,000 limit and right now I could spend $15,000 because it's in "Credit" by $5000 etc

  Still get all the same benefits (Eg airpoints)
  When you add money to the card you will get an email from them letting you know when they have received the money.
  It normally takes a day or two after that for it to appear on your card.

  TLDR: It can be in credit fine, normally takes 2-3 days for the money to appear once you transfer it over.

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  Chops NZ on 22/04/2023 - 17:47

  I've got amex airpoints platinum.
  When I over pay. It just shows as credit.
  I've paid 10k once. I've got an 8k limit.
  It show as 10k available

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    Alan6984 on 22/04/2023 - 19:28

    Seems odd, but you must be (or were) seeing that I guess.

    I would have thought that with an $8,000 credit limit (and no existing outstanding transactions), if you pay $10,000 onto the account, it would show as $18,000 available.

    If you are correct, then what the OP is proposing to do won't work.

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      Chops NZ on 23/04/2023 - 21:42

      Oh yes, sorry, I spent the 8k the previous month.
      So yes, I paid an extra 2k on top of what I paid back, and it showed 10k available.
      So the extra money I paid was on top of what I paid.