Paying tax by credit card and earning points...true

Discussion in 'Open Discussion' started by dvmcl54, May 25, 2005.

  1. dvmcl54

    dvmcl54 Junior Member

    May 20, 2005
    10
    0
    Melbourne
    I accidently discovered that as I pay my accountants bill by credit card through a very well known branded product who have branched out to providing business services, I thought I would try to pay my bas last qtr to the accountant and he paid it for me with my funds from the credit card.
    so now I have an $8k tax bill over 12 mths so I will pay by credit card initial lump sum and then instalments.

    You will all be busting to know which company it is so think about it...... Quick...not
    I think I will pay for my next overseas trip on October 05 to the travel agent $10k this way and pass m it through y the bill o paying b facility.

    If no one else can use this facility maybe you need to meet my accountant
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    Regards to all
    dvmcl54
     
  2. ozstamps

    ozstamps Member

    Aug 30, 2003
    314
    31
    Sunny Sydney
  3. thadocta

    thadocta Active Member

    Probably something to do with the fact that the ATO will not accept credit cards, but his/her accountant will, so get the accountant to pay the outstanding liability and then pay the accountant using the card - thereby getting points.

    Dave
     
  4. Guest

    Guest Guest

    lol - watch your accountant charge you 10% for using a CC.

    If they don't, you're paying them too much.
     
  5. PaulZ

    PaulZ Member

    Jan 11, 2005
    215
    0
    Merchant Fees

    I want to know what banks charge their customers for processing credit card transactions (visa and mastercard).

    I ask because i am thinking about earning points by charging my own credit card. For example, if i were to charge $220,000 or so and they charge like 1.5% (and it may be less for such large volume), then the cost in fees is only $3,300, and the points earned could get you to London in Business Class which would cost what $7,000.

    Any thoughts?

    Am i Crazy??


    I would love it if my accountant accepted Credit Card. Though i would also like to see pigs fly. Dont count on the ATO ever accepting Credit - I doubt they would want to contribute to Australians getting into further debt. That must be the reason for it?
     
  6. NM

    NM
    Moderator

    Aug 27, 2004
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    Re: Merchant Fees

    The amount is usually a percentage of the transaction, and it can vary depending on the size of your business with the provider.

    To get a feel for what the percentages are, look at what Telstra charge for paying your phone bill by credit card. The amount is different between Visa/Mastercard and Amex/Diners, which reflects the different amount the providers scrape off the transaction.
     
  7. Guest

    Guest Guest

    Re: Merchant Fees

    No you're not crazy, and yes it is a great oldie for getting bulk points. Do it too often and some red flags will get raised by your merchant bank. 1.5% is at the low end of the scale in australia. Many FT'ers do it in USA where the rates are around 1% for any medium sized business and of course this is greater value since points over there go further.
     
  8. Guest

    Guest Guest

    I had an idea a few years ago to make a business out of charging cards.... for example.. you need 100k points - I charge your card 101,000 and refund you 100k minus the fees incurred by the transactions, and you keep your 200k miles =)

    (if anyone does this, 20% is fine, thanks)
     
  9. arun

    arun Member

    Sep 5, 2002
    311
    0
    Sydney
    I think dcmvl's accountant uses MYOB's M-powered payments facility which allows making payment to anyone from an account or credit card. MYOB will charge the credit card and then remit the money to ATO. There is a small charge.
     
  10. Karen

    Karen Intern

    Mar 4, 2005
    58
    0
    Sydney
    I'll do this. I only pay 0.8% credit card fees to my merchant faciltiy providor. So for $800 you could have 100k points...worth it do you think?
     
  11. straitman

    Moderator

    Apr 27, 2003
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    Depends how much you value your points Karen. At 1 cent each you are $200 ahead, at 2 cents each you are $1200 ahead etc.

    Good luck. let us know how you go. :D
     
  12. Karen

    Karen Intern

    Mar 4, 2005
    58
    0
    Sydney
    I wasn't saying I would do it myself. I was offering to provide the service to anyone who wants to avail themselves of it. :D
     
  13. straitman

    Moderator

    Apr 27, 2003
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    Sorry Karen, I've just checked my wallet and don't have a spare $101,000 just at the moment. :oops: :oops: :oops:
     
  14. Karen

    Karen Intern

    Mar 4, 2005
    58
    0
    Sydney
    Well I wasn't thinking you'd have it in cash....over the credit card limit then? We could space it over a few months if it will help you out. :D
     
  15. PaulZ

    PaulZ Member

    Jan 11, 2005
    215
    0
    Hi Karen,

    Let me get this straight. You would charge someones visa/mastercard for say $100,000 and then refund via cheque or EFT $99,200? and that way I would get 100,000 points and it would cost me $800.

    I think that seems like a fair deal. What about the trust issues though? And are there any taxation implications?

    How do you get such a low merchant fee?

    Do you accept AMEX? If so at what rate?

    Paul
     
  16. Karen

    Karen Intern

    Mar 4, 2005
    58
    0
    Sydney
    I get such a low rate cause I'm special :oops: , actually I get it because I belong to a particular accountants network which has negotiated a discounted rate with a major Australian bank. You need to be an accountant in professional practice to get it.

    Of course AMEX is not supported. Although I may look into that one as some AMEX cards offer 1.5 for $1 spent, so depending on what I could negotiate it may be worth considering. Obviously my professional conduct standards and ethical obligations would prevent me from ripping you off, as tempting as it may seem. :roll:

    How much do Qantas charge for that many points? I have no idea, the idea of purchasing points myself just seems to take all the fun out of it.
     
  17. PaulZ

    PaulZ Member

    Jan 11, 2005
    215
    0
    " * Points may be purchased in blocks of 500.
    * Minimum 500 to maximum 20,000 points per purchase.
    * Points may only be purchased with a specific Award flight in mind.
    * Members may not purchase more than 15% of the points needed for the Award flight.
    * Points must be purchased by the member on their own behalf.
    * Each member may only purchase points once every 12 months.

    Cost of 20,000 Pts is A$557.50."

    Your method is better. I mean if i were to buy 256,000 points, it would cost me $2048 (purchasing them from you at 0.8%) (+ a little bonus for your work i guess), and the points will allow me a business class trip to london which would have cost $8,000 - $10,000 i guess.

    I agree it does take the fun out of it if you just buy the points, however it is the most economical.

    The more points the better - they are valuable to me. I am one who has never had probs using points for flights (when doing it way in advance) and it is just a cheaper way to get ppints quickly.

    So Karen, i may take you up on your offer - if it was an offer. But i would obviously need more details. Perhaps PM me.

    Paul
     
  18. Karen

    Karen Intern

    Mar 4, 2005
    58
    0
    Sydney
    I want to check something first and then I'll pm you Paul. :wink:
     
  19. Guest

    Guest Guest

    $800 for 100,000 points isnt' a bad deal...

    that's roughly $2100 SYD-LHR return, business, including taxes.

    To make it really worthwhile, you need a CC that gives you double or tripple points ...then the savings really roll in!

    And of course theres no need to do 100k at once, since your merchant pays DAILY, you could easilly have a sliding process worked up where you charge a card 5-10k per day, and that amount is automatically re-deposited into a nominated account ...and keep it going forever and ever and ever and ever...you get the idea... ;)

    Now...about my cut..
     
  20. robertz

    robertz Member

    Sep 15, 2005
    134
    2
    Atlanta, GA, US
    Howdy All.
    Just signed up and thought i'd throw my 2 cents in.

    Karen, you better check, because there is no way your getting 0.8% merchant fee.
    The Banks put their % fee on top of what Visa/MC charge. If your getting 0.8%, then this means the Bank is charging you less than the cost of the service from the CC company. Which would be an absolute first for any Australian Bank.

    The 0.8% you might find is the bank fee + the standard rate from Visa/MC.

    Maybe........
    Rob
     
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