ATO (tax office) payments by credit card

[sumthinfornuthin]

I am using my Jetstar Platinum card substantially more now. Woolies EDR will loose possibly $ 60/80,000 from me in the next 12 months. How is that good business ???

 

[Deleted User]

I am using my Jetstar Platinum card substantially more now. Woolies EDR will loose possibly $ 60/80,000 from me in the next 12 months. How is that good business ???

This may be true, but to Woolies / HSBC it's purely a numbers game, and for you the numbers do not favour them, there are "others" with better "numbers" than you and this is their target...

remember, we are not the only ones playing "The Game"...

 

[sumthinfornuthin]

I am sure they are looking for the cardholders who don't clear their cards at the end of the cycle but surely cardholders sweeping substantial money through their cards and paying off each month ( = NO FINANCIAL RISK OF DEFAULT FOR CARD COMPANY) produces good profit for them ??

 

[Deleted User]

I am sure they are looking for the cardholders who don't clear their cards at the end of the cycle but surely cardholders sweeping substantial money through their cards and paying off each month ( = NO FINANCIAL RISK OF DEFAULT FOR CARD COMPANY) produces good profit for them ??

Financial risk they accept and is included in their product pricing, because its the driving factor for the BIG profits they seek.

Why settle for good profit when you can make a motza....

But I agree with your general theory, not many businesses out there that limit your spending such as this card does, as I have said before, its a game and should be played as such...

 

[sumthinfornuthin]

Check............................ !

 

[Moopere]

I am sure they are looking for the cardholders who don't clear their cards at the end of the cycle but surely cardholders sweeping substantial money through their cards and paying off each month ( = NO FINANCIAL RISK OF DEFAULT FOR CARD COMPANY) produces good profit for them ??

I agree. It boggles my tiny brain that card issuers would want to limit card spend in any way. I've moaned about this across several threads over the months and years. I really can't understand it. Yet, its very prevalent, there is this artificial (to me) demarcation line between personal cards and business cards.

In thinking about the EDRCC though. I wonder if I'm sniffing around the truth of it with:

1) Its a reasonably generous scheme. 1:1 earn on spend, plus, with the EDR swipe card (not the CC) you can get another 1 point/$ (almost... minus the first $30) _plus_ you'll probably pick up a fuel voucher and might choose to swap cents discount for 2 more points per litre + the 1p per dollar you'll get on the petrol spend as well.....

2) Is all of point 1) really about customer retention and accrual? ie; Your customers become almost captive to your own branded commodities? Although I struggle to believe it, perhaps there is no money to be made on the CC whatsoever, assuming that most punters are paying off their cards in fully monthly, and that the card system is being cross subsidised by food and petrol sales? I notice that the EDRCC, despite apparently being a 'platinum' card, offers none of the additional benefits usually attached to such cards (no insurance for example).

3) If 2) is close to being correct, then all spend done outside of your own branded products might not be very profitable at all, perhaps break even? Perhaps its so close to the line that loss is possible? If so, then every transaction thats not going to go near your own product is something you'd want to limit.

Completely guessing of course, but there must be something real behind what otherwise looks like a pretty artificial demarcation. I'm coming from a thought process that spend is spend and all spend is good, but perhaps in reality there is more subtlety?

 

[Deleted User]

card offers & loyalty schemes come and go, and until your QEDRCC account gets shut down, enjoy the cheap JASA's and upgrades from this great little card and the ATO

I'm with cove in thinking the world is not ending....yet

Just make sure you put plenty of personal spend on this card to make the Business & ATO stuff look not so bad, if they can see that you are using their brands, then you might be lower on their hit list since it may affect the brand loyalty you have with them as mentioned in point 2 of your previous post

ie. User using ATO portal for payments + doing weekly spend at many WOW brands is a much better customer than the one doing the ATO payments alone on this card with no other spend to "subsidise" the ATO points earn...

 

[Moopere]

card offers & loyalty schemes come and go, and until your QEDRCC account gets shut down, enjoy the cheap JASA's and upgrades from this great little card and the ATO

Yep. Thats pretty much the deal with all my cards. I keep a bunch and try, as much as is reasonable, to have different cards from different providers. If something goes pear shaped I can fall back to the other cards and go hunting in new pastures for a replacement.

 

[wafliron]

I agree. It boggles my tiny brain that card issuers would want to limit card spend in any way. I've moaned about this across several threads over the months and years. I really can't understand it. Yet, its very prevalent, there is this artificial (to me) demarcation line between personal cards and business cards.

<snip>

Completely guessing of course, but there must be something real behind what otherwise looks like a pretty artificial demarcation. I'm coming from a thought process that spend is spend and all spend is good, but perhaps in reality there is more subtlety?

I won't chip in again with my thoughts on the profitability of ATO payments for CC providers as we've already discussed them earlier in this thread, but I will add another, new possibility: WOW's ruthlessness with regards to cancelling cards used for business spend may have something to do with the National Consumer Credit Protection (NCCP) Act that has been rolled out over the past few years.

One of the things which can get a finance company into lots of trouble under the NCCP legislation is providing a business finance product to a person who is not legitimately using it for business purposes - e.g., in the space I work in (car finance), providing a Lease / Hire Purchase / Chattel Mortgage to someone to finance a car which they won't be using more than 50% of the time for business purposes. AFAIK there is no prohibition against going the other way (providing a consumer finance product for business purposes), but perhaps WOW / HSBC are being super-cautious here and taking the view that they could run afoul of the law if they allow that.

No idea how likely this is, but I figure it's possible given that in some ways / areas ASIC have done a terrible job of adequately informing businesses of their obligations under NCCP, and hence some businesses are taking a super-cautious approach to implementing it.

Just make sure you put plenty of personal spend on this card to make the Business & ATO stuff look not so bad, if they can see that you are using their brands, then you might be lower on their hit list since it may affect the brand loyalty you have with them as mentioned in point 2 of your previous post

That's exactly what I'm doing with my WOW EDR: putting plenty of ATO payments through it, but also using it as my main Visa/Master card for "everyday" purchases (particularly at Woolworths-group shops) to hopefully keep me off their radar.

 

[cove]

Heading off to London in the middle of next week has caused a flurry of activity on my credit cards as we have a BAS monthly and some BAS quarterlies together with quarterly taxes.Mostly I have used the lowest cost cards as I really enjoy producing low cost frequent flyer points. Now that isn't always possible when you have all the quarterlies and a squeezed up time frame to handle it.Probably I should have just treated this month like any other and just logged on from London to keep the payments rolling along. Better not to leave anything up in the air is what I have been thinking.Mrscove wants a hassle free holiday so fixing taxes is one loose end that needs to be wrapped up.Now where are those Olympic tickets....we are still waiting on a delivery!

 

[angusburns]

Bon voyage and hope you have a great time.

 

[cove]

Only 2 more payments and all the accounts with the ATO will be done.
Our second set of Olympic tickets are showing as having arrived at the Belmont depot of Fed Ex so we are very happy that loose end should be fixed tomorrow.
Looking forward to catching up with some of the AFF members in London over the next 4 weeks. I am hoping that it is as much fun in London as it was at the Sydney Olympics.

 

[Deleted User]

Only 2 more payments and all the accounts with the ATO will be done.
Our second set of Olympic tickets are showing as having arrived at the Belmont depot of Fed Ex so we are very happy that loose end should be fixed tomorrow.
Looking forward to catching up with some of the AFF members in London over the next 4 weeks. I am hoping that it is as much fun in London as it was at the Sydney Olympics.

With enough "wish"ing I will be at the next one lol

 

[AFY]

Have a great time in London!

 

[cove]

For ATO inspiration let me tell you about our points flight SIN-LHR. With the plane switch from first on the 777 we got put into SQ Suites. We got a seat/suite for dining and then one made up for sleeping. KRUG,Dom Perignon,Duck and caviar are all there to get you wanting to pay more taxes.

 

[Flashback]

For ATO inspiration let me tell you about our points flight SIN-LHR. With the plane switch from first on the 777 we got put into SQ Suites. We got a seat/suite for dining and then one made up for sleeping. KRUG,Dom Perignon,Duck and caviar are all there to get you wanting to pay more taxes.

What about Book the Cook? Lobster Thermidor? :shock:

 

[drross]

For ATO inspiration let me tell you about our points flight SIN-LHR. With the plane switch from first on the 777 we got put into SQ Suites. We got a seat/suite for dining and then one made up for sleeping. KRUG,Dom Perignon,Duck and caviar are all there to get you wanting to pay more taxes.

thank you. very inspirational

 

[cove]

Went for the main menu rather than Book the Cook.
Today was a very,very good use of FF points we made using Citi at 0.36 cents per point so thank you Citi and ATO.
We look like we have 3 more A380 Suites flights as a result of aircraft changes.

 

[Flashback]

Went for the main menu rather than Book the Cook.
Today was a very,very good use of FF points we made using Citi at 0.36 cents per point so thank you Citi and ATO.
We look like we have 3 more A380 Suites flights as a result of aircraft changes.

You'll be please to know Fi is good for the count now, so we're counting on a nice evening out!

 

[penegal]

Went for the main menu rather than Book the Cook.
Today was a very,very good use of FF points we made using Citi at 0.36 cents per point so thank you Citi and ATO.
We look like we have 3 more A380 Suites flights as a result of aircraft changes.

I think BTC is a bit overrated, and the menu never seems to change, although the lobster is good (if you are into that).

Nice work on the Equip changes