Sniip accepting Amex at same rate as Visa/Mastercard

[Asaiyo]

Looks like DEFT has dropped AMEX surcharge to 1.5% directly:

Card transactions (including direct debit arrangements and one-off payments)

Visa Debit: 0.40% surcharge Visa Credit: 1.50% surcharge Visa International: 4.00% surcharge MasterCard Debit: 0.40% surcharge MasterCard Credit: 1.20% surcharge MasterCard International: 4.80% surcharge American Express: 1.5% surcharge Diners Club: 3.773% surcharge *The surcharge is a percentage of the transaction amount.

Just confirming we earn 100% points paying DEFT with AMEX right? No point to continue using Sniip then?

 

[bobbinbrisco]

paying deft via snip + amex never worked in the first place

 

[Asaiyo]

@bobbinbrisco I guess waiting for Sniip is pointless now that we can go direct with DEFT for 1.5%?

I guess Im looking for clarification that I'll earn full AMEX points paying directly with DEFT right?

 

[bobbinbrisco]

yeah just use DEFT directly you'll get full points

 

[albyd]

That's great news on Amex with DEFT - assumed they didn't want to give a cut of the fees to Sniip so they just cut the fee to us directly which is great - less fiddling around. Shame it took Sniip coming into the market to get to this. Poor old Diners still in the stratosphere.

 

[dansyd]

Keen to hear how much you value AMEX MR points at if you’re using Sniip with a 1.5% surcharge?

 

[albyd]

The way I look at it is that it is a "business" expense so it's reduced by my tax rate then the cash value of MR points so washes its face. There is upside if the airline point devals aren't as horrific as they might be when things get going again. I'm thinking of this as "upside" given the value of airline miles might not be as high post COVID as they were before.

YMMV.

 

[dansyd]

so washes its face

What does that mean?

 

[aleaf]

What does that mean?

Breaks even.

 

[dansyd]

Breaks even.

Thanks very much.

The way I look at it is that it is a "business" expense so it's reduced by my tax rate then the cash value of MR points so washes its face. There is upside if the airline point devals aren't as horrific as they might be when things get going again. I'm thinking of this as "upside" given the value of airline miles might not be as high post COVID as they were before.

YMMV.

I’d love to see your calculations around breaking even.

 

[albyd]

In my case:
Gross Fee 1.50%
less:
Tax benefit@30% -0.45%
Amex MR Cash eq -1.125%
Net cost: -0.075% (profit)

Everyone's results will vary depending on the Amex card and MR earn rate (ie Platinum & Centurion worthwhile, others maybe there's a cost). I'm using an example rate of tax for instance for companies - just use yours (eg personal tax at 50% has a greater impact). Talk to your accountant first before deciding if this methodology applies to you as I don't know your personal tax situation. YMMV.

 

[Pumbaa]

I think the 1.5% includes GST, so you get that back too as a business expense.

 

[VPS]

I'm thinking about signing up for Sniip but just want to check if it can now be used for DEFT payments now @Miss Sniip

 

[Miss Sniip]

I'm thinking about signing up for Sniip but just want to check if it can now be used for DEFT payments now @Miss Sniip

Hi there @VPS that's a great question!

Unfortunately DEFT payments don’t allow us to see who the final bill provider is, and as such they are not currently approved with Amex. We're working with Amex on a solution and hope to turn DEFT payments back on in the near future for our Amex users.

You are still able to use a Visa or Mastercard for DEFT payments