I have an amex account, say the balance is $200. I setup autopayment for $500 every month.

What happens to the $300 left over after the autopay? Do they just take the $200, an no more?

It is too late to cancel the auto pay for this month.

  • Why would you set such a high autopay amount? Instead of a fixed Autopay, why not have them bill the exact balance each month? – JTP - Apologise to Monica Mar 18 '15 at 2:15
  • @JoeTaxpayer ADD and Dyslexia. I am the most forgetful person ever, I make accounting mistakes and I don't like making interest payments. I typically run a $600 reserve in my bank account, but a typical credit card payment is $1000. So in the case that I forgot to pay my bill I would be left with $500 less to pay interest on. I just didnt want the autopayment to be less than my reserves, so if I do need the extra cash flow flexibility it is there, but enough to keep the interest low. It rarely happens that I need to have to keep a balance, but I need to know that I have the option if I want. – Reid Mar 18 '15 at 6:16

In your comment, you wrote "a typical credit card payment is $1000." So, on average, 9 day's of normal use will absorb that extra $300. Unless the autopay is set for the day the bill is cut, it's normal to pay the credit card 2 weeks after that bill was sent and you'd never actually have a positive balance (credit) on the account.

I have a similar set up, only 2 differences. It's a push system, my bank where I have checking is where I set up my payments. And it's only $100/mo. This is enough to make more than a minimum payment, and avoid a late fee should I somehow miss the bill. Of course, interest would accrue, but no issue from the card issuer.


Looking to revise based on comment

One of two results will happen:

(1) You will end up with a -$300 balance. Meaning you have a $300 credit on the account that will be applied to your next month's credit card balance; continuing until the credit is all used.

(2) Your credit card company will send you a check for the $300 of overpayment.

Because your automated payment is a "push" from your bank to the credit card company the bank cannot and will not change the amount you specified should be paid.

  • The autopayment is on the amex end. I don't trust bank of america with anything, never mind paying my bills. – Reid Mar 18 '15 at 0:33

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