RewardPay question

[Letzblaze6432]

Hey guys,

I have a quick question regarding RewardPay.

I recently got a AMEX Business Platinum Card and none of my suppliers use any credit card facilities.

I roughly spend around $200,000 on supplier bills and ATO bills per month and was wondering if using RewardPay is worth while using. I know there is a fee involved with transactions and that would be tax deductible, but I really wanted to know if the fee vs points is worth it for me or not.

Kind regards,

 

[Dr Ralph]

Only you can answer this question and your answer depends upon how much value you place on points. Is it 1 cent per point, 2 cents per point or some other value that you hold?

 

[Letzblaze6432]

Only you can answer this question and your answer depends upon how much value you place on points. Is it 1 cent per point, 2 cents per point or some other value that you hold?

Hey mate,

I don't really understand your reply.

Just on face value in $ worth is it worth for me using it in my situation that I posted.

At the moment I'm just using EFT for my supplier bills.

Cheers,

 

[daft009]

What Ralph is saying... how will you use the points once you earn them?
then you can doing the same with $ vs points, what does that equate when its $ per point.

EG: Syd to Melb & back on Tiger might be $120 return and fine for you.
the same with points on Qantas/Virgin might need 30,000 points.
in this case, (120/30000) = 0.4c/point of value

then how much is rewardpay (or another payment processor) charging you in fees.
on the $200k/month how much fees will you be paying?
accordingly you can work out the cost of 1point.
you would hope the cost of earning a point is less than what you use it for
otherwise just stick to paying cash.

have a read here, Simple Point Value Calculator - Point Hacks

 

[Letzblaze6432]

What Ralph is saying... how will you use the points once you earn them?
then you can doing the same with $ vs points, what does that equate when its $ per point.

EG: Syd to Melb & back on Tiger might be $120 return and fine for you.
the same with points on Qantas/Virgin might need 30,000 points.
in this case, (120/30000) = 0.4c/point of value

then how much is rewardpay (or another payment processor) charging you in fees.
on the $200k/month how much fees will you be paying?
accordingly you can work out the cost of 1point.
you would hope the cost of earning a point is less than what you use it for
otherwise just stick to paying cash.

have a read here, Simple Point Value Calculator - Point Hacks

Ah I see.

This is all new to me so it's abit hard wrapping my head around it.

According the RewardPay site this would be my bracket.

20k to < 100k

2.10%

1.47%

 

[daft009]

It was new to all of us at one time or another. Rules and how to play the game change every so often so we're always learning

So 2.1% of 200k is $4200 in fees. And it earns you approx 459k Amex points. Just under 1c per Amex point How will you use them? Whats the conversion factor from Amex to your chosen transferee?

 

[Letzblaze6432]

It was new to all of us at one time or another. Rules and how to play the game change every so often so we're always learning

So 2.1% of 200k is $4200 in fees. And it earns you approx 459k Amex points. Just under 1c per Amex point How will you use them? Whats the conversion factor from Amex to your chosen transferee?

Hmm it seems very expensive that's around 50k worth of fees per year.

I would probably use them for flights - business and pleasure. Have not explored what else I could use the points for.

It looks like it would be just cheaper to not even use this service?

Cheers,

 

[daft009]

It looks like it would be just cheaper to not even use this service?

Lol and we're back to Ralph's reply now.. Only you can answer that question

Different for everyone as there are so many ways to use those points.

 

[Dr Ralph]

It was new to all of us at one time or another.

So true!

So much reading and learning for any one new to all this! No short cuts in the learning process either.

I'd never flown in anything other than Y before joing AFF. But I've never flown in anything less than J since joining AFF

 

[kpc]

The short answer is that because of the Amex earn devaluation (by 50%) last year, the RP fees are now too expensive even allowing for tax deducting their fees. A lot of us stopped using RP then...then along came Easy Bill Pay for MC / Visa at 0.8 % fees...but this was then increased to 1.3% last October! When it was 0.8%, I cycled several million dollars through EBP

 

[Bell21]

Hey guys,

I have a quick question regarding RewardPay.

I recently got a AMEX Business Platinum Card and none of my suppliers use any credit card facilities.

I roughly spend around $200,000 on supplier bills and ATO bills per month and was wondering if using RewardPay is worth while using. I know there is a fee involved with transactions and that would be tax deductible, but I really wanted to know if the fee vs points is worth it for me or not.

Kind regards,

I posted the above table in another thread on online payment processors - if you search up RP or some of the other names above, there's a lot that's been written about them - I've included RP above at the rate you've stated - I haven't checked the table in a few months, so I'm unaware if rates have changed. Also, there are reports that Ferni's platform isn't working (and it's cheaper than RP if operational)

But in essence, it comes back to Dr Ralph's first comment to you --- what do you want to earn points at and what do you think you can spend them at, assuming you can get availability.

My rough rule of thumb is to try and earn points around 1 cent / airline point and use them at 2+ cents / airline point, but that just works for me and I vary it depending on what I'm trying to achieve - if I'm aiming to fly SQ for instance, I'd be tempted to pay slightly higher per point, since I might have more chance at availability - however, recently, I purchased Marriott points at around 2 cents / points, which I'd not normally do, but in a very specific circumstance, it turned out good value and better than actually paying with cash for the accommodation, so YMMV and good luck!

 

[amaroo]

Hmm it seems very expensive that's around 50k worth of fees per year.

I would probably use them for flights - business and pleasure. Have not explored what else I could use the points for.

It looks like it would be just cheaper to not even use this service?

Cheers,

IMHO, better to spend that $50k on actual flights and not have to worry about restrictive award bookings.... build up status along the way if you fly enough.

 

[Bell21]

sorry, error in first table posted - I believe the 2.1% you refer to is GST exclusive - if I'm mistaken I'll repost table - happy to PM if you want further explanation on any facts in table

 

[Cruiser Elite]

I roughly spend around $200,000 on supplier bills and ATO bills per month and was wondering if using RewardPay is worth while using.

Whole different equation if you forget AMEX / RP and head over to a St G / YakPay combo

 

[greenie]

You might want to consider using Bluechain instead as they charge 1.95% + GST for Amex.

 

[daft009]

You might want to consider using Bluechain instead as they charge 1.95% + GST for Amex.

never heard of these guys till now.
been using them a while?

 

[greenie]

never heard of these guys till now.
been using them a while?

I started using them a couple of months ago (when ferni's method stopped working). Very easy to use and support was great too.

 

[get me outta here]

Hmm it seems very expensive that's around 50k worth of fees per year.

I would probably use them for flights - business and pleasure. Have not explored what else I could use the points for.

It looks like it would be just cheaper to not even use this service?

Cheers,

50 K?

 

[Bell21]

I think it's meant to be approx $5k isn't it?

 

[daft009]

50 K?

$200k/month
so 2.4mil/yr.
2.1% of that is ~$50k