Q: What is the grace period after my billing cycle for American Express business cards? Also, do I have to pay my balance in full every cycle?

A: The grace period on American Express Business Cards is 25 days from the billing cycle date. In other words, if the billing cycle date falls on the 15th of the month, business card users have 25 days from that day—not from the day the bill is received—to pay the balance.

American Express urges its cardholders to pay their monthly balance in full, whenever possible, and offers many incentives to do so. For example, paying the card balance in full and not carrying over a balance gives the cardholder the opportunity to qualify for lower interest rates. Also, any balances paid in full do not have finance charges added to them.

Both of these can save card user money in the long run. However, American Express understands that payment in full isn’t always possible. Balances that are carried over from the grace period, however, are subject to finance charges and possibly other fees. Further, continually carrying a balance over may result in an adjustment of interest rates.

Card users are encouraged to learn when the billing cycle date is as it applies to the cards they use, and keep track of expenditures, especially as the billing cycle end approaches. In this way, they will not be surprised by larger balances that expected.