RewardPay Worth it?

[The Analyst]

Hi guys, we are doing some small developments around Melbourne and was wondering if using Rewardpay to pay our builder is still a worthwhile thing to do as the fees seems a bit high? So it's business to business.

We will probably end up paying $1m for the development. Currently holding a Amex Explorer and a Westpac Black Mastercard. Do i need to register for a business credit card first?

Sorry, i think i might've posted in the wrong section. Please kindly move this for me mods.

Thanks.

 

[NM]

Sorry, i think i might've posted in the wrong section. Please kindly move this for me mods.

I have moved here to the General Credit Card Discussion forum for you. Might be the best place for it. Sorry, I can't really comment on the question asked other than to suggest that only you can determine the value of the points that may be earned verses the cost of obtaining the points.

 

[33kft]

I would start by having some baseline as to what the points are worth to you. For me personally (and this is only me) I would not do it for a transaction of $1m if the cost of acquiring points exceeded .6cpp (for QFF, YMMV)

Not sure if going into detail on why that is my safe spot is necessary but it comes down to ensuring I will get more value for the points than the fees spent, with significant upside potential if I use them efficiently.

From there, I would work out the true cost based on payment mode fee, points per dollar on the card used and tax offset.

If B is greater than A, just write them a cheque.

 

[Pointy Bird]

It is better to get the builder to setup credit card facilities just for you. He may charge you directly for the extra costs, but that is something you can negotiate with him if he is keen to get your business. I have does this successfully the past, but that was with Explorer / Edge combination and post April devaluation of points it is probably not with it depending on tax deductibility and the credit card fees they pass onto you.

 

[albyd]

You can make it easier for your builder and get them to set up as a Square merchant 1.9% - better than RewardPay at 2.64%. Probably a good idea to maximize your payments before 14 April changeover but I wouldn’t trust prepaying that sort of $$ to a builder so best to do what you’re comfortable doing now then re assessing after April 15 should RP reduce their fee.

Alternative is EasyBillPay at 0.8% but that is for MC/Visa. Might be worth it depending on the MC/Visa you have. Less cost than Amex but might be more cost effective.

 

[hossein_au]

I am not sure what price you are willing to pay to earn points and what sort of Visa/MC card you hold, but even for a card that pays only 0.5 point per dollar, EasyBillPay equates to 1.6 cents per point* (0.8% fee). For a card that pays, say, 0.8 point per dollar, you end up paying 1 cent per point.

Depending on what sort of AmEx you have, RewardsPay, with 2.64% fee, might 'currently' be better or worse.

*) 1.6 cents per point is way more than what I am happy to pay.

 

[albyd]

I agree. RP only works as there is currently a tax benefit for some payments (run past your accountantfirst). I’ve been using another service run by a fellow AFFer @ferni which is 1.95%. After deval when earn rate in Expkorer halves, won’t be worth it for me.

EBP works for me with my Dragon card but works out at 1-cent per point for non business payments and a little less for business payments subject to accountants guidance.

Otherwise agree these methods do have some costto create points earn opportunities where there are none (eg payees who don’t accept cards). Not for everyone. Important to do the math.

 

[hossein_au]

I agree. RP only works as there is currently a tax benefit for some payments ...

Isn't this regardless of the service provider? I.e. you'll get the same tax benefit using a (business) card on either RP or EBP?

 

[33kft]

Isn't this regardless of the service provider? I.e. you'll get the same tax benefit using a (business) card on either RP or EBP?

Yes. Meanwhile EBP at 0.8% is entirely workable for some cards (ie 1=1 cards) for non business payments. RP both isn't and is not targeted at this market (hence requirement for ABN).

 

[NJSteve]

Hi guys, we are doing some small developments around Melbourne and was wondering if using Rewardpay to pay our builder is still a worthwhile thing to do as the fees seems a bit high? So it's business to business.

We will probably end up paying $1m for the development. Currently holding a Amex Explorer and a Westpac Black Mastercard. Do i need to register for a business credit card first?

Sorry, i think i might've posted in the wrong section. Please kindly move this for me mods.

Thanks.

No idea if you ever found a suitable platform, hopefully you did. We're using Payment Logic for our Amex and Yak Pay for our Visa/MC and they're suiting us great thus far - definitely worth a shout.