Supplier now accepting Cc - which card to use?

[Platinum One]

A supplier to my business has recently announced they will accept credit card payments for their services. My monthly spend with them is approx $500k.

The credit card service fees will be: MasterCard and Visa 0.8% (inc. GST); American Express 2.15% (inc. GST).

We hold bank issued MasterCard and Visa for employee and minor spends. I am a long term (also long suffering) AMEX Centurion Card holder.

I have my annual renewal day for AMEX rolling around soon, so will have a brief opportunity to collect my 2x earning, before the cap of 750,000 kicks in.

Given service fees and monthly spend, would be interested in your collective thoughts re best card for greatest point earn. Typically spend points on OneWorld affiliates for F/J redemption to east and west coast USA, domestic upgrades and QF JASA's.

Happy to be very creative to find a solution.

 

[bismarck]

There'll be others who are more knowledgeable than I, but sounds like a case for Citi Select (direct to Krisflyer/Virgin). I know that doesn't meet your current usage, but based on $500k a month you'd get an awful lot of Suites flights.

 

[cove]

Citi Select has been really good for each of us except for anything ATO. We end up with Qantas, Singapore and Virgin Australia points and have put them to good use. The non Qantas Citi Select is my favourite as I can warehouse the points to avoid points expiring anywhere.
The next cards we use are Westpac Black Altitude and Earth.
Woolworths EDRCC I tend to keep for personal stuff.

 

[Simo]

I wouldn't use AMEX due to the surcharge.

.8% on Mcard will be an extra $4000 per month app.

2.15 will be just over $10k in fees per month.

IMHO don't use it unless you know of a good deal to use the points.

Hope my maths is correct

 

[cove]

Yes that is correct Simo.
Then there is the added cost of putting a life sized photo in your work seat !!

 

[Simo]

Yes that is correct Simo.
Then there is the added cost of putting a life sized photo in your work seat !!

I am glad I got my math's correct

 

[cove]

Next step would be the life sized photo for the empty work seat seeing your new job becomes that of flying a lot more to stop those pesky points moving up into multi millions.

 

[DaveB]

With that amount of monthly spend, no need to pay more than 1% as you will have points to burn unless you intend to take the whole footy team in F/J away each season.
Citi Select has been great for me with the warehousing to SQ & VA (1.33x points) and CX (1:$1) ensuring you will always fly at least in J without much trouble. Compared to QF, the seat availability is mind blowing.
Citi Rewards is also great allowing you to spend $1,000 for every $58,000 spend so you can easily buy seats outright on any flight or on other travel such as cruises.
The only hassles with Select are no ATO and can no longer load the card by more than $10,000. Even on the max. stated limit, it now takes me a week to process monthly payments whereas it previously could be done in a day.
I always find suppliers are more than happy to obtain a Visa/MC service at 1% which they then waive on the basis of receiving more regular payments than the standard 30 days.

 

[rweir]

note that the max initial limit for Select is $30k, which you'll go through 17 times in a month. even at the max limit ($100k), that's 5 charge/bpay cycles. maybe citibank will go above for $100k for super big spenders with flawless payment histories?

ps don't forget to see if they'll waive the cc surcharge, since they're getting their money more or less immediately.

 

[Platinum One]

note that the max initial limit for Select is $30k, which you'll go through 17 times in a month. even at the max limit ($100k), that's 5 charge/bpay cycles. maybe citibank will go above for $100k for super big spenders with flawless payment histories?

ps don't forget to see if they'll waive the cc surcharge, since they're getting their money more or less immediately.

The main advantage Amex offers is the high limit I have in place meaning I can make single payments, vs select with relatively low limits needing multiple payments.

there is no benefit to the supplier in terms of payment days, as currently paid via direct debit on due date.

working with supplier to get the AMEX surcharge in the .5-.8% range. If this gets through, happy days.

 

[cove]

Amex under 1% surcharge.....not likely!
Even Coles and Woolworths pay more I think unless you take the 10% gst off.
I think we started Citi Select with $50,000 and $40,000 and now we are at $75,000 and $60,000.

 

[Beta4Me]

note that the max initial limit for Select is $30k

I don't believe this is correct seeing max initial Signature limit is $50K.

 

[rweir]

you're correct - I mixed up Select and Signature.

 

[Beta4Me]

you're correct - I mixed up Select and Signature.

Strangely I was told by the call centre when applying that the max initial Signature limit is also $50K. Weird...

 

[rweir]

it's possible, but the website says $30k...