Chase Pay Over Time Fee Explained (Calculator + Video)

Are you considering using the Chase Pay Over Time option? This article will help Chase customers understand the Chase Pay Over Time fee and provide a free Chase Pay Over Time calculator (spreadsheet download) for additional transparency before initiating a plan.

The Chase Pay Over Time plan is also referred to as My Chase Plan. However, an email to customers dated January 30th, 2024. 

My Chase Plan® will become part of Chase Pay Over Time. For eligible accounts, there are no changes to the functionality of this feature or active plans. Starting in 2024, there will be name changes throughout your experience with us.

The goal of this article is to:

• Help Chase customers better understand the Chase Pay Over Time fee. 
• Provide a Chase Pay Over Time calculator spreadsheet that converts the monthly fee into an effective annual percentage rate (APR).
• Demonstrate how the Chase Pay Over Time program is better than the typical interest rate costs, giving customers more information to make the best decision for their objectives.

What is Chase Pay Over Time?

The Chase Pay Over Time Plan program offers customers a built-in “buy-now-pay-later” option for one-time purchases. Customers pay a flat monthly fee instead of interest.

The monthly fee is ultimately lower than the credit card annual percentage rates (APRs) for those who don’t pay the balance in full. It is a good product. 

Payment plans span three to 24 months, lowering your monthly payments on individual items. I personally use the program, but sparingly.

Chase is transparent with the payments and Chase Pay Over Time fee amounts when setting up a plan.

However, Chase does not provide an estimated “effective APR” (or interest rate) when you initiate a plan. So, comparing the cost against the card’s interest rate is challenging.

My research uncovered that the effective APR for our family’s Chase Pay Over Time options ranges from about 6.48% to 10.86% (updated 11/20/2023). Our family has two accounts, and the rates differ between accounts (see table below).

This range will vary for you based on several factors, including creditworthiness and other undisclosed factors. Federal Reserve interest rate changes or other external factors may also alter the range. It may also vary with the Treasury yield curve.

However, Chase states that:

Monthly fee of up to 1.72% of the amount of each eligible purchase transaction or amount you select to pay over time with no interest, just a fixed monthly fee.

That means Chase may charge up to 20.64% (1.72% X 12) of the purchase amount per year for some customers. That’s $20.64 on a $100 purchase. 

Chase Pay Over Time is a good option compared to incurring interest on unpaid balances or cash advances, which are in the 15% to 30% range (varying by customer and creditworthiness). Customers with excellent credit can get much lower rates than usual. 

This resource aims to give Chase customers more transparency on the program and a free calculator spreadsheet to help them better understand fees. You’ll need to use the calculator to determine your specific effective APRs. 

Download the calculator below and use this video to learn how to use it. 

Chase Pay Over Time Calculator (Free Download)

The Chase Pay Over Time calculator on Chase’s website is insufficient because it does not include information regarding the effective APR. 

It is transparent about the flat monthly fee, total payment and fees, and maximum monthly fee. We applaud credit card transparency.

However, the Chase calculator provided does not give the full picture because it excludes an effective APR to compare against traditional credit card interest. 

I’m calling this an “effective APR” because Chase has clearly stated it is not charging interest, only a flat fee. But we’re converting the flat fee into an APR for comparison’s sake. 

I’ve created a free Chase Pay Over Time Fee Calculator available for download. Use it to input your specific purchase scenarios. 

Download Calculator

Using the above example, when I select the Red Sox tickets purchase (to see the Pirates at Fenway), the calculator gives us the following results as of 11/20/2023:

The amount customers pay to the bank for this service is ultimately lower than the standard interest rate. However, it takes a spreadsheet calculator to convert the fixed monthly fee to an effective APR.

The Chase Pay Over Time calculator download I provide on this web page helps customers understand what they’re getting into when they start a payment plan. 

Please use the calculator to fully understand the Chase Pay Over Time fees for your account. Your fees WILL DIFFER from mine. Our family has two cards, and the rates are different for each. 

How Does Chase Pay Over Time Work?

When customers log into their Chase credit card account on the website or via the Chase mobile app, they may see an option to “Pay over time”. 

It looks like this:

Only transactions over $100 will have the option to pay over time. But some purchases may be ineligible.

When you click the Pay over time link, it opens a side window showing you the payment plan options.

There are three options for purchases under $25,000. Over $25,000, there will only be two.

Each payment plan option gives you the following:

• Total payment per month
• Number of payments
• The monthly fee (not interest)

It does not provide an effective APR for customers to compare against their standard credit card interest rate. 

When you select your preferred option, it takes you to a new screen with more detail. I’ve selected the 6-month plan in this example, which will cost me $0.67 per month for a total of $4.02 over the duration of the payment plan. 

Click next again to get to the confirmation page. Note that starting a Chase Pay Over Time plan is not reversible. But customers can pay off the plan with no penalty. 

The “Start this plan” button is the final confirmation to initiate the plan. 

What is the Chase Pay Over Time Fee? We Explain

Generally, shorter durations and lower purchase amounts result in lower effective APRs. Longer durations and higher purchase amounts result in higher effective APRs. 

The Chase Pay Over Time fees are calculated based on the purchase price and duration of the payment plan using annual percentage rates (APRs). This is not stated explicitly by Chase. 

When I calculate the total fees over the payment durations and convert the fees to an APR, I discover patterns that help explain the Chase Pay Over Time fees. 

I ran several purchase amounts between $100 and $30,000 and found that the precise fee percentage does indeed vary depending on the duration and purchase amount. 

As the purchase amount rises, the calculated effective APRs gravitate toward the numbers in the table and chart below (subject to change). Note that our family’s two accounts receive different effective rates. I’ve provided a range in the table below to show the difference. Yours may be higher or lower.

* Use the Chase Pay Over Time calculator (next section) to get the precise APR for your specific account and purchases.

WordPress Table

Table updated: 11/20/2023.

Though Chase clearly provides the payment, monthly fees, and total fees, it does not include an effective annual percentage rate (APR) to compare against traditional credit card interest. This would be a helpful feature to add to their own Chase Pay Over Time calculator. However, I suspect they prefer to keep this information away from customers. 

Please note the effective date in the above chart. Rates are subject to change. 

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PLEASE NOTE: My Chase Plan/Chase Pay Over Time previously said it charges a “1.72% monthly fee” on selected purchases. 

However, in my research for the original version of this article, I found that number to be misleading. When I multiplied the purchase price or monthly payments by 1.72%, I didn’t get the same monthly fee provided by Chase. It was inconsistent and nowhere near 1.72%. 

UPDATE: Chase has modified the 1.72% statement in a January 2024 email to state “up to“. It now says: 

Monthly fee of up to 1.72% of the amount of each eligible purchase transaction or amount you select to pay over time with no interest, just a fixed monthly fee.

The “up to” qualifier is more helpful than the previously wording. Now we can calculate the maximum annual fee (20.64%) for customers with bad credit. Customers will excellent credit get much better rates. 

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Plan Durations

The payment plans offered through Chase Pay Over Time range from three months to 24-month durations. 

The options are 3, 6, 12, 18, and 24. 

But only two or three duration options are given for each purchase. Chase determines the duration options based on the purchase amount. 

Here’s a table showing my account’s payment plan duration options. The options are based on the purchase amount.

Your account settings may be different. 

WordPress Table

Chase Pay Over Time Key Features

Here are some key features and limitations of the Chase Pay Over Time. These are subject to change. 

• Only purchases over $100 are eligible.
• Only purchases in the last 90 days are eligible. 
• Chase reserves the right not to offer the service on purchases over $100.
• Customers may have up to 10 active or pending plans on their credit card accounts at a time. 

Is Chase Pay Over Time Worth It? — Chase Pay Over Time Review

The short answer is yes. Here are five reasons why. 

1. You can save money using Chase Pay Over Time vs. paying traditional interest

The Chase Pay Over Time effective interest rate ranges are well below traditional credit card interest rates for customers with excellent credit. Instead of leaving a balance at the end of the month and paying interest, initiate a Chase Pay Over Time pay-over-time agreement. 

There is no interest, only a flat fee. But the effective interest rate is cheaper by more than five percentage points. 

2. Convenient for large one-time purchases

Sometimes we need to buy expensive things to repair our homes, pay for kids’ activities, or need a vacation. If you don’t immediately have the money, Chase Pay Over Time lets you pay over time without the severe penalty of paying interest. 

A flat fee (converted to an effective interest rate) is a smarter solution to your spending needs. 

3. Easy to configure

See the screenshots above if you need more clarification about initiating a Chase Pay Over Time. The website makes it easy to do and is transparent with the flat fees and payment timelines.

4. No early payment penalty

Chase Pay Over Time payments will increase the monthly minimum amount you need to pay to avoid interest. That’s no surprise. 

If you come into additional money, you can pay extra above the “interest savings balance” and reduce the number of Chase Pay Over Time payments or eliminate them.

5. No new account to open

If you already have a Chase credit card account, you do not need to open a new account with a buy-now-pay-later platform such as Affirm or Klarna. That means fewer logins, more privacy, fewer emails, and fewer accounts to forget about. 

Chase Pay Over Time FAQs

Read the official Chase Pay Over Time FAQs here. Consider that page to be the definitive source for all questions. Here are some relevant highlights.

How Does Chase Calculate the Chase Pay Over Time Monthly Fee?

Chase uses proprietary annual percentage rates to calculate the monthly fee. The formula changes based on customer profiles (likely, creditworthiness/FICA). 

Here is the official fine print from the Chase FAQs.

Q: How do you determine the monthly fee? A: We determine the fee based on the original purchase amount, the number of billing cycles you chose to pay it in full and other factors.

This article attempts to clarify this FAQ in the Chase Pay Over Time Fee Explained above.

Users can estimate the monthly fee by using the Chase-provided calculator and the information in the sections above. 

Does Chase Pay Over Time Lower Balance?

Yes. When you pay the Chase Pay Over Time monthly payment, your credit card balance decreases by that amount. 

Does Chase Pay Over Time Increase Available Credit?

No.

Does Chase Pay Over Time Increase Affect Credit?

No. 

Does it Affect Credit Score?

Credit scoring is proprietary. We do not know a definitive answer to this. However, accounts that remain in good standing should maintain credit rating status. 

Does Chase Pay Over Time Allow Pay Off Early?

Yes. There are no penalties for early payment. 

What is the APR? 

There is no interest paid using Chase Pay Over Time. Customers pay a flat monthly fee. 

However, customers can convert the flat fee to an effective APR using the free spreadsheet available above. The Chase Pay Over Time effective APR depends on multiple factors, including the Plan duration and purchase amount. Rates may vary among customers.

Our calculations found that the Chase Pay Over Time effective APR ranges from 6.48% to 10.86% as of late November 2023 for customers with excellent credit. This range is subject to change and may be higher for customers with average to bad credit.

Conclusion

Overall, the Chase Pay Over Time is a good option for those who need it. 

The program is clearly a response to buy-now-pay-later companies such as Affirm and Klarna. 

With the Chase Pay Over Time option, Chase offers a lower-cost option for one-time purchases, similar to buy-now-pay-later services. This helps to keep Chase customers happy and within the Chase ecosystem. 

It helps customers with a flexible option to save money and alleviate monthly interest on large purchases. 

Featured dog photo via DepositPhotos used under license