ATO (tax office) payments by credit card

[Cruiser Elite]

Wouldn't a fairer way for banks to do this is.

Banks being fair with customers? Bah humbug - that notion is way dead - maximising shareholder wealth is the only notion that controls bank actions in the modern age.

 

[RAM]

am lucky enough, that my BAS is a good one, and the fact that the surcharge is tax deductible for business, i think it's still worthwhile
albeit halved, but better than nothing

It may be deductible but that means you only get 30% of the surcharge back the other 70% you wear.

0.7 *1.5 = 1.05% COST (and time value of money on top)

 

[RAM]

Yes, but I'm hoping someone with some banking knowledge might be able to be more specific about how much it costs, them and do they actually lose money, or is it that they just break even, or make a small profit, but not enough to be worth it for them.
This will cause Westpac to lose a lot of good will amongst some high net worth clients. There is definitely a cost to them associated with that.

ON a profit basis:

Good will = zero value if you are an "aware" customer who knows the rorts. In fact you probably end up as a net-cost customer.

Best customer = a revolver - keeps an outstanding balance and pays min or close to each month.
Worse customer - a clearer - clears total outstanding balance on due date.
Worst customer - an AFF member and a clearer - gets value for points, uses them within 12 months and talks about the method.

Underlying hope for banks & CC issuers - turn a 'clearer' into a 'revolver' through credit limit increases OR cutting free cash flow by increasing loan commitments (personal loan etc) so that you are forced to become a 'revolver'.

Once you pass a loss level then any decent system will flag you on an exceptions report. Then it is just a matter of whether a 'drone' or a 'thinker' goes through the report. Luckily many drones and very, very few thinkers.

 

[amaroo]

That "Golden Goose" hasn't got many feathers left! Double dipping will probably see it put out of its misery...

Banks like customers that rack up double digit interest rates .... not ones that cycle large amounts and drain their lolly jar.

 

[Mark3000]

ON a profit basis:

Good will = zero value if you are an "aware" customer who knows the rorts. In fact you probably end up as a net-cost customer.

Best customer = a revolver - keeps an outstanding balance and pays min or close to each month.
Worse customer - a clearer - clears total outstanding balance on due date.
Worst customer - an AFF member and a clearer - gets value for points, uses them within 12 months and talks about the method.

Underlying hope for banks & CC issuers - turn a 'clearer' into a 'revolver' through credit limit increases OR cutting free cash flow by increasing loan commitments (personal loan etc) so that you are forced to become a 'revolver'.

Once you pass a loss level then any decent system will flag you on an exceptions report. Then it is just a matter of whether a 'drone' or a 'thinker' goes through the report. Luckily many drones and very, very few thinkers.

fascinating insights, thanks very much.
You sound like you know what you are talking about! Do you have any ideas on whether they actually lose money from ATO payments or break even??

 

[burmans]

fascinating insights, thanks very much.
You sound like you know what you are talking about! Do you have any ideas on whether they actually lose money from ATO payments or break even??

I think the point is that you can't isolate spending and repayment patterns. Revolvers will make the banks good money even if they are spending on the ATO.

 

[BillytheFIsh]

Ah sheeet.

 

[deka2]

Ah sheeet.

Well said BillytheFIsh

 

[Cruiser Elite]

Billy OT but I gotta ask?

Ah sheeet.

The Wire?

 

[beardoc]

I'm thinking that the overseas credit card with a no currency conversion fees might be the best option.

 

[legroom]

I'm thinking that the overseas credit card with a no currency conversion fees might be the best option.

Yes & No

Yes, it is a good idea.

No, most cannot get one.

 

[cove]

Beardoc that is a great idea but I will have to get a different one to keep the Kris Miles growing. I am ok for QF and AA still but I will have to read up on One Mile At A Time and other blogs to solve this new problem.
My next run to the US is in 2 months so I won't need to speed read.
I am very glad that I have squirreled away points/miles in warehouses but they would only last a few years.

 

[BillytheFIsh]

Billy OT but I gotta ask? The Wire?

Indeed. My office this afternoon:

https://www.youtube.com/watch?v=l1dnqKGuezo

 

[BillytheFIsh]

I must say, it hadn't occurred to me until now how vulnerable my non-QF earn was to a change like this. I've only been a sole trader for a short time, so I'm only just now getting some substantial BAS and installment payments coming through. At least points for domestic QF J tickets won't be in short supply in the immediate future, I guess (let's see how long those cards last !). The game rolls on.

[I guess I had better start reading those AA and Lifemiles threads for EU trips 2015+. I don't want to take the thread OT, but if someone could PM me a good starting point for current info on that front, I would be appreciative.]

 

[Pushka]

Just as I get the hang of all this and yesterday booked my first SQ flight. Oh well. Cove will find another way for us.

 

[burmans]

Just as I get the hang of all this and yesterday booked my first SQ flight. Oh well. Cove will find another way for us.

SQ is still going to work with a WBC Krysflyer card.

 

[BillytheFIsh]

SQ is still going to work with a WBC Krysflyer card.

For the moment... how long will that last though?

 

[cove]

The Westpac deal would need to be varied by Singapore Airlines and they may not like tampering with the contract so the Westpac Platinum Kris Flyer card may continue paying 1.5 points on Amex and 0.5 points on Visa for quite a while longer.

 

[amaroo]

The Westpac deal would need to be varied by Singapore Airlines and they may not like tampering with the contract so the Westpac Platinum Kris Flyer card may continue paying 1.5 points on Amex and 0.5 points on Visa for quite a while longer.

Sorry Cove. The writing is clearly on the wall. Don't take this the wrong way .... It's still a game - but the whales are going to make this game extinct.

Go hard and go strong - I suppose!

 

[BillytheFIsh]

Let's hope so Cove. I'm going to apply - I reckon it's worth the $250 punt for me if I get another 6-12 months out of it.