Worth paying on credit card when there's an extra fee?

[Rebekkap]

Hi folks,

am just trying to work out whether it's worth putting gym membership, which costs $37 a week, on Amex or Woolworths Qantas Mastercard, given the fees.

This is what the fees thing says:

"All direct debit memberships: Once off setup fee $2.20 Debit from a bank account $1.10 per transaction Debit from a credit card is 2.2% of transaction for Visa/Mastercard or 4.4% of transaction for Amex/Diners (a minimum fee of $1.10 is applied)"

So if I pay it by direct debt I'm paying $1.10 a week on top of the $37 - but no FF points.
If I pay by Woolies card, I pay $1.10 and get 37 FF points.
If I pay by Amex I pay approx $1.63 and get 55 FF points

Clearly it's a no-brainer that you wouldn't do direct debit - my question is whether the extra 18 points is worth the extra 53 cents?

This may seem insignificant (probably because it is!) but I'm trying to get my head around reasonable cost of points...

cheers
Rebekka

 

[DeKa]

I would find a different gym, or challenge them on the fees! That's very expensive.

 

[Rebekkap]

It includes unlimited pilates and yoga classes, plus two pilates reformer classes - that's actually exceptionally cheap! Usually a single pilates reformer class is over $30.

 

[MAX_1]

2.2% of $37 is 0.814c not $1.10 .

 

[oz_mark]

2.2% of $37 is 0.814c not $1.10 .

a minimum fee of $1.10 is applied.

Philosophically, I am against places that want you to direct debit, then charge a fee however you go about it....

 

[Rebekkap]

Leaving aside helpful suggestions about the cost of the gym and the philosophical objections to direct debit fees, since I am going to sign up for said gym and am going to have to pay them somehow, does anyone have an opinion on whether the extra points are worth the marginal extra cost?

 

[oz_mark]

Leaving aside helpful suggestions about the cost of the gym and the philosophical objections to direct debit fees, since I am going to sign up for said gym and am going to have to pay them somehow, does anyone have an opinion on whether the extra points are worth the marginal extra cost?

Not much to split between the two credit card options. 1.5 x the fee gets 1.5 x the points.

 

[Rebekkap]

Not much to split between the two credit card options. 1.5 x the fee gets 1.5 x the points.

Yes, but how much is a reasonable price to pay for a point?

 

[oz_mark]

Yes, but how much is a reasonable price to pay for a point?

Your basically paying 3c a point, so it depends what you are using your points for. Some people around here value their points higher than that, and some lower. What sort of things do you use your points for?

 

[Rebekkap]

Your basically paying 3c a point, so it depends what you are using your points for. Some people around here value their points higher than that, and some lower.

ok, thanks - I largely use my points for upgrades, discount economy to business, so probably reasonable on that basis, since in dollar value that gives you best return.

 

[netgrom]

Yes, but how much is a reasonable price to pay for a point?

Unfortunately as discussed here many times there is no easy answer to that question. It is all on how you perceive them and how you choose to burn them.

My opinion only, but if your investing to get points and feel it is worthwhile while not invest the extra .53c to get the extra points

 

[UP4014]

We all have opinions, so here is mine.

I wouldn't join the gym at all, but spend my dollars on flights somewhere :mrgreen:

Matt - never been in a gym.
PS, where a fee is involved I try to pay cash, out of principal I'm on a one man crusade to avoid fees.

 

[rechoboam]

I would pay on the dearer card myself because I am prepared to pay serious money for serious points. And about to be bumped to WP so availability will be better for seats I just booked 3 j fares to Asia and Y from there all on points. That's worth I don't know $20000 or something and I would have paid far less to get the points (although still a few thousand dollars I guess)

 

[amaroo]

Once you get over the high fee & the evil thoughts that are conjured along with it -

Over 12 months you will spend an additional $27.56 with AMEX but will earn an additional 936 points.

Not many flight you can purchase with QF for $27.56 that generate 936 points......I would use AMEX.

 

[Cruiser Elite]

IMHO 2.2% for V/MC and 4.4% for A/DSC outrageous in itself - blatant profiteering - but of course our fabulous Reserve Bank who opened the floodgates here will prolly be to gutless to close them.

Rebekkap just do your maths - I am a points junkie and chase pts wherever I can - at the end of the day it is the 'average cost' of pts in a given period which is the important figure - but only you can determine what is value and what is not value.

 

[Rebekkap]

Once you get over the high fee & the evil thoughts that are conjured along with it -

Over 12 months you will spend an additional $27.56 with AMEX but will earn an additional 936 points.

Not many flight you can purchase with QF for $27.56 that generate 936 points......I would use AMEX.

Pity we can't get flights for $27.56! When you put it that way, it makes sense.

 

[burmans]

Pity we can't get flights for $27.56! When you put it that way, it makes sense.

Guys, think about it. This is not an apples with apples comparison. If (you wish) you were able to purchase a flight for $27.56 you wouldn't just get the 936 points, you would get the filght as well. In this case you are spending $27.56 and getting nothing other than the points. Hard to justify 3c a point I think, I judge earning activities against other earning activities, there are so many in the 1-2c range I wouldn't be considering this as a good option.

 

[Alanslegal]

Over a 52 week period:-

Woolworths: Pay $57.20 to earn 1924 points [ie $29.70 per 1,000]
Amex: Pay $84.76 to earn 2860 points [ie $29.64 per 1,000]

Either way the difference per 1,000 points is very negligble.

 

[smit0847]

That's an extremely expensive gym membership. My gym membership is about $11 a week with no fees to pay by credit card.

Hope this helps.

 

[Rebekkap]

That's an extremely expensive gym membership. My gym membership is about $11 a week with no fees to pay by credit card.

Hope this helps.

Does your gym membership include two pilates reformer classes? Because this one does, and they're normally over $30 EACH so this is actually a bargain. I could get an ordinary gym membership far cheaper, I know that, but it's not what I want.