Ever Tolerated High CC Fees for Points?

kevmev12 on 01/03/2018 - 10:53

I have a strata bill of approximately $700 to pay. I normally pay via direct debit to avoid credit card fees, but I noticed they accept AMEX payments on their website. However, the credit card fee is around 1.5% - which takes the total payment to around $710. I sorta see that as 710 MR points for around $10, since if I pay via direct debit I don't pay fees but I also don't get any points. Is that a good way of looking at it? Is it worth paying that CC fee to get 710 points?

Have you ever paid off a large bill and tolerated a CC fee just to get the points?

Financial

Comments

  • John Kimble on 01/03/2018 - 11:03
    +9

    It's just maths. If you come out ahead, why not.

    • Donaldhump on 01/03/2018 - 12:10
      +1

      yes, i pay my ATO bills on CC sometimes.

  • zonra on 01/03/2018 - 11:06

    Have you ever paid off a large bill and tolerated a CC fee just to get the points?

    If the points are worth more than the fee, then yes (which is rarely ever the case for me).
    Are the 710 MR points worth more than $10 to you?

  • Nugs on 01/03/2018 - 11:17

    no

  • AbsX on 01/03/2018 - 11:18

    Only if I'm trying to meet the minimum spend for bonus points, otherwise no its not worth it

  • donbot on 01/03/2018 - 11:20

    Yes, but generally only where I can get the spend to count toward a minimum spend bonus.

    Eg. 50,000 points if spend $3,000 in 3 months. If I can pay a big strata fee to count towards this spend, even if it incurs $10-20 of fees, then I will. Otherwise - generally not.

  • Kenb0 on 01/03/2018 - 12:48
    +1

    Depends what you subsequently spend the 710 MR points on. If you can exchange that/redeem that amount of points for more than $10, then its worth it.

    Like someone else said, simple maths.

  • geek001 on 01/03/2018 - 12:54
    +1

    Back when ING Direct had the 2% cashback on debit cards, I would use it to pay for my Aldi shopping because the credit card charge is 0.5%, I still come out ahead.

  • Stoozer on 01/03/2018 - 14:07

    Is the bill tax deductible?

  • [Deactivated] on 01/03/2018 - 14:20

    Last time I looked points were worth a surcharge of between 0.35% and 0.8%. You then have to take into account if in the interest-free period you can use that money to offset a mortgage or something. But pretty much anything over 1% kills it dead. Points schemes are getting worth less and less these days. What points are worth for me just devalued another 5% this month @ CBA, and the extra bonus points from AMEX are now only applicable to a very few stores.

    My Strata fees are one of the few things I pay via direct debit, the points are not worth it for me.

  • Seraphin7 on 01/03/2018 - 15:09

    I have. From memory the surcharge was about 0.4% and the effective cashback was about 1%. Money for nothing.

  • LemonShapedRock on 01/03/2018 - 19:34

    If the cost converts to 1c per point or less I always do it

  • realfancyman on 02/03/2018 - 09:38

    What dollar value do you put on those points? Does it surpass the cost of the credit card fee? If false, pay via credit card.

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