American Express Membership Rewards - Warning- Online payment funds withdrawn INSTANTLY

I've been paying all my amex accounts online for several years-- My experience has been that the funds are quickly withdrawn, the same day if the payment is initiated in the morning, the next day if initiated at night.

however . . .

Last Friday as I was leaving the office (around 5 PM) I sent an online payment, and was shocked on Saturday morning to see that it had been deducted by midnight Friday. I hadn't expected it to hit the account until Monday. I'm not sure if this was a unique Friday occurance (since bank hours are extended) or if payments are now deducted "on the fly" but be forewarned--

even a several hour "float" may be a thing of the past.

I've been paying all my amex accounts online for several years-- My experience has been that the funds are quickly withdrawn, the same day if the payment is initiated in the morning, the next day if initiated at night.

however . . .

Last Friday as I was leaving the office (around 5 PM) I sent an online payment, and was shocked on Saturday morning to see that it had been deducted by midnight Friday. I hadn't expected it to hit the account until Monday. I'm not sure if this was a unique Friday occurance (since bank hours are extended) or if payments are now deducted "on the fly" but be forewarned--

even a several hour "float" may be a thing of the past.

Yeah. American Express as well as other banks (Citibank and Chase in my experience) have started this practice. Although Chase takes 2-3 business days to post on their end, the withdraw is instant. I believe the
Check 21 Act (http://www.federalreserve.gov/paymentsystems/truncation/default.htm) has played a major role in losing the float between payment of your credit card and debts. In fact, I have seen checks deposited into my FMA accounts much faster. It has its benefits and shortcomings, but overall I'm fairly happy with losing the float.

I never played "the float game" but for convenience did sometimes do my online banking on the way to the bank. Never again. Bank first. Then online banking.

I too like the speeded-up-bank-world where one can transfer funds to/from brokerage accounts and pay bills online with ease.

It's fair enough. I've always appreciated the fact that Amex immediately credits my payments. Quid pro quo:they have the right to immediately grab the funds.

I have always paid electronically on the Amex website, and I appreciate that payments have been credited same day to my Plat Card...but I have found that payments are taken from my current account (checking a/c) within 2 business days (for instance, I paid my Plat account last Wednesday and the payment was taken from my checking account by Friday morning). Amex still credited the payment as of Wednesday.

My experience with AMEX online payments have been consistent.

I always set it up as soon as I get my oline statement (to be paid one day before due date) and the paymet is posted the same day (one day before due date) but my checking account has always been deducted the next business day. If that next business day falls on the weekend, it will deduct on Monday.

I was wondering if the same posting speeds also apply to the SPG AMEX credit card, or is it only for charge cards? I know many here have posted the fact that the spg card usually has a much lower limit, thus making it difficult to charge a lot on the card.

Thank for your replies

Mike

I was wondering if the same posting speeds also apply to the SPG AMEX credit card, or is it only for charge cards? I know many here have posted the fact that the spg card usually has a much lower limit, thus making it difficult to charge a lot on the card.

Thank for your replies

Mike
My SPG Amex payments post from my checking account the morning following the payment.As to the lower limits-I can't speak about that-mine is 25,000-not sure how they arrived at that amount

Tried it again this Friday, just for "fun"-- sure enough, it was deducted by midnight.

Perhaps the speed has to do with the bank one uses? These payments were deducted from Wells Fargo.

My prior experience was identical to those reported on this thread-- it always cleared on the next business day.

My most recent payment was initiated on the americanexpress.com website on Thursday at 1:13PM mountain time and was deducted from my account on Friday around 9am mountain time.