New RewardPay Rates are not really good enough

[JennyH]

So as predicted, RewardPay has lowered their rates, but unless you are spending large $$ in single payments, I don't think it will be enough for me to keep using the service. Or am I doing my sums incorrectly?

*Single payment amount	Rate %(+GST)	**After Tax Rate
0 to < 20k	2.15%	1.51%
20k to < 100k	2.1%	1.47%
100K to < 300K	1.95%	1.37%
300K to <500K	1.90%	1.33%
500K to < 1M	1.85%	1.30%
1M+	1.75%	1.23%

 

[Bell21]

They probably need to start their rates at 1.75 and slide downwards from there, although even, it's really not worthwhile given points deval

 

[coriander]

Most of my invoices are around $20k so the drop from 2.64% to 2.15% is not much of an incentive. Looks like the dragon or platinumpay (at a pinch) from now on.

 

[amaroo]

Let's see what happens over the coming months. I suspect they are throwing darts at a board trying to find a number that keeps them in business.

I own a few businesses and certainly have the margin to not worry about the fee, but I've also got a brain and know the value of a FF point coupled with a substantial stock pile of them

 

[mrtupperware]

It’s a really good deal for those of us out there paying $1m invoices (or over), but not for anyone else. Bye bye RP, not going to use it anymore

 

[kpc]

Amex points earn rate has been 1/2ed. RP have not been reduced enough to make up for this..I'm now an ex RP user! I'm only interested in "buying" points at 1c or less for KF miles, less for Qf.

 

[Bell21]

Let's see what happens over the coming months. I suspect they are throwing darts at a board trying to find a number that keeps them in business.

I own a few businesses and certainly have the margin to not worry about the fee, but I've also got a brain and know the value of a FF point coupled with a substantial stock pile of them

Yep, I suspect that's exactly what they're trying to do

 

[Pointy Bird]

I think this is a good start. For me this is about 1c per KF point - after the next election I will be paying circa 50% tax...
But making a "limit" of 1 c per KF point implies you are only prepared to pay $3500 for a return 1st class flight to Europe. I think this flight is worth a lot more than that, hence my cut-off will be about 1.5c per KF point.

 

[amaroo]

Once the points get to a threshold > 1cpp I'd rather spend the cash and go straight to front of the award queue via status.

I already hold P1 with QF and have found this to be a pretty valuable asset for award seat release.

PPS looks to have some decent benefits and at S$25K spend .... this provides a far better bang for your buck, particularly if you've got a substantial amount of points in the expiry queue.

 

[daft009]

PPS looks to have some decent benefits and at S$25K spend .... this provides a far better bang for your buck, particularly if you've got a substantial amount of points in the expiry queue.

From what I read about PPS only paid flights in J or F/R count

 

[amaroo]

From what I read about PPS only paid flights in J or F/R count

Correct....

 

[Cruiser Elite]

From what I read about PPS only paid flights in J or F/R count

There are PPS members here now who have a very dim view of it’s value

 

[kpc]

There are PPS members here now who have a very dim view if it’s value

Many moons ago, I used to be PPS....the SGD 25K spend on J or higher fares does not include the taxes etc unless that has changed. Also, it used to be that if travelling J, a PPS member could access the Sq F lounge....that went! I think the 2 best current benefits of PPS are that KF miles don't expire and allegdly better chance of award waitlists clearing. I personally won't be rushing to get PPS again..

 

[amaroo]

The expiry benefit is the key.... only valuable if you've got a truckload of points to protect.

 

[pangwen]

Wonder if B2Bpay will also reduce their rates to match - they used to be (are?) 2.4%+GST for Amex too.

 

[Pointy Bird]

There are PPS members here now who have a very dim view if it’s value

There are many AFFers who have a dim view of paying for flights...

Although I may need this if my KF points get closer to expiring. Spending $25k each year to keep the points alive is poor value - I would rather gift points or force myself to fly more.

 

[amaroo]

There are many AFFers who have a dim view of paying for flights...

Although I may need this if my KF points get closer to expiring. Spending $25k each year to keep the points alive is poor value - I would rather gift points or force myself to fly more.

Not me. Happy to pay for flights and also earn a truck load of points. It's a beautiful thing if you can manage both!

 

[carls888]

I must admit, I am disappointed with the Reward Pay offering. I won't be using it in the immediate future that's for sure, the fee is too high for the points accumulation.
I agree with amaroo that I would rather purchase flights and hold status than invest many $$$ into a points scheme that may be changed and devalued at any time. I feel the burn from Amex's recent decision and I am wary.
It seems it is time to review my spend strategy.

 

[BillytheFIsh]

While it probably doesn't make sense at the 30% tax rate, using Platinum charge at the top personal rate is still justifiable.

 

[ninja-tim]

They must be going based off everyone else's rates as well but slightly beating it.

I, also, will stop using RP until they improve their rates. Looks like Amex spend is going to take a massive dip. Will need to apply for credit limit increase on my dragon.