RewardPay question | Australian Frequent Flyer
Australian Frequent Flyer

Welcome to Australia's leading independent Frequent Flyer and Travel Resource since 1998!
Our site contains tons of information that will improve your travel experience.

Joining AFF is fast, simple & absolutely free - register now and take immediate advantage of these great BENEFITS.

Once registered, this box will disappear. And you will see fewer advertisements :)

Login Now to remove this and all advertisements (GOLD and SILVER members)
Not a member? Register Now for free

RewardPay question

Letzblaze6432

Newbie
Joined
Jan 19, 2020
Messages
7
Hey guys,

I have a quick question regarding RewardPay.

I recently got a AMEX Business Platinum Card and none of my suppliers use any credit card facilities.

I roughly spend around $200,000 on supplier bills and ATO bills per month and was wondering if using RewardPay is worth while using. I know there is a fee involved with transactions and that would be tax deductible, but I really wanted to know if the fee vs points is worth it for me or not.

Kind regards,
 

Dr Ralph

Enthusiast
Joined
Jan 21, 2014
Messages
10,485
Qantas
Bronze
Virgin
Red
Flights
My Map
Only you can answer this question and your answer depends upon how much value you place on points. Is it 1 cent per point, 2 cents per point or some other value that you hold?
 

Letzblaze6432

Newbie
Joined
Jan 19, 2020
Messages
7
Only you can answer this question and your answer depends upon how much value you place on points. Is it 1 cent per point, 2 cents per point or some other value that you hold?
Hey mate,

I don't really understand your reply.

Just on face value in $ worth is it worth for me using it in my situation that I posted.

At the moment I'm just using EFT for my supplier bills.

Cheers,
 

daft009

Established Member
Joined
Feb 21, 2014
Messages
1,669
Qantas
Bronze
Virgin
Red
Flights
My Map
What Ralph is saying... how will you use the points once you earn them?
then you can doing the same with $ vs points, what does that equate when its $ per point.

EG: Syd to Melb & back on Tiger might be $120 return and fine for you.
the same with points on Qantas/Virgin might need 30,000 points.
in this case, (120/30000) = 0.4c/point of value

then how much is rewardpay (or another payment processor) charging you in fees.
on the $200k/month how much fees will you be paying?
accordingly you can work out the cost of 1point.
you would hope the cost of earning a point is less than what you use it for
otherwise just stick to paying cash.

have a read here, Simple Point Value Calculator - Point Hacks
 

Letzblaze6432

Newbie
Joined
Jan 19, 2020
Messages
7
What Ralph is saying... how will you use the points once you earn them?
then you can doing the same with $ vs points, what does that equate when its $ per point.

EG: Syd to Melb & back on Tiger might be $120 return and fine for you.
the same with points on Qantas/Virgin might need 30,000 points.
in this case, (120/30000) = 0.4c/point of value

then how much is rewardpay (or another payment processor) charging you in fees.
on the $200k/month how much fees will you be paying?
accordingly you can work out the cost of 1point.
you would hope the cost of earning a point is less than what you use it for
otherwise just stick to paying cash.

have a read here, Simple Point Value Calculator - Point Hacks
Ah I see.

This is all new to me so it's abit hard wrapping my head around it.

According the RewardPay site this would be my bracket.

20k to < 100k2.10%1.47%
 

daft009

Established Member
Joined
Feb 21, 2014
Messages
1,669
Qantas
Bronze
Virgin
Red
Flights
My Map
It was new to all of us at one time or another. Rules and how to play the game change every so often so we're always learning

So 2.1% of 200k is $4200 in fees. And it earns you approx 459k Amex points. Just under 1c per Amex point How will you use them? Whats the conversion factor from Amex to your chosen transferee?
 

Letzblaze6432

Newbie
Joined
Jan 19, 2020
Messages
7
It was new to all of us at one time or another. Rules and how to play the game change every so often so we're always learning

So 2.1% of 200k is $4200 in fees. And it earns you approx 459k Amex points. Just under 1c per Amex point How will you use them? Whats the conversion factor from Amex to your chosen transferee?
Hmm it seems very expensive that's around 50k worth of fees per year.

I would probably use them for flights - business and pleasure. Have not explored what else I could use the points for.

It looks like it would be just cheaper to not even use this service?

Cheers,
 

Dr Ralph

Enthusiast
Joined
Jan 21, 2014
Messages
10,485
Qantas
Bronze
Virgin
Red
Flights
My Map
It was new to all of us at one time or another.
So true!

So much reading and learning for any one new to all this! No short cuts in the learning process either.

I'd never flown in anything other than Y before joing AFF. But I've never flown in anything less than J since joining AFF :)
 

kpc

Senior Member
Joined
Mar 11, 2003
Messages
6,328
Qantas
Platinum
Virgin
Gold
The short answer is that because of the Amex earn devaluation (by 50%) last year, the RP fees are now too expensive even allowing for tax deducting their fees. A lot of us stopped using RP then...then along came Easy Bill Pay for MC / Visa at 0.8 % fees...but this was then increased to 1.3% last October! When it was 0.8%, I cycled several million dollars through EBP :)
 

Bell21

Member
Joined
Jan 11, 2018
Messages
450
Hey guys,

I have a quick question regarding RewardPay.

I recently got a AMEX Business Platinum Card and none of my suppliers use any credit card facilities.

I roughly spend around $200,000 on supplier bills and ATO bills per month and was wondering if using RewardPay is worth while using. I know there is a fee involved with transactions and that would be tax deductible, but I really wanted to know if the fee vs points is worth it for me or not.

Kind regards,
I posted the above table in another thread on online payment processors - if you search up RP or some of the other names above, there's a lot that's been written about them - I've included RP above at the rate you've stated - I haven't checked the table in a few months, so I'm unaware if rates have changed. Also, there are reports that Ferni's platform isn't working (and it's cheaper than RP if operational)

But in essence, it comes back to Dr Ralph's first comment to you --- what do you want to earn points at and what do you think you can spend them at, assuming you can get availability.

My rough rule of thumb is to try and earn points around 1 cent / airline point and use them at 2+ cents / airline point, but that just works for me and I vary it depending on what I'm trying to achieve - if I'm aiming to fly SQ for instance, I'd be tempted to pay slightly higher per point, since I might have more chance at availability - however, recently, I purchased Marriott points at around 2 cents / points, which I'd not normally do, but in a very specific circumstance, it turned out good value and better than actually paying with cash for the accommodation, so YMMV and good luck!
 

amaroo

Enthusiast
Joined
Sep 22, 2011
Messages
12,183
Qantas
Platinum 1
Flights
My Map
Hmm it seems very expensive that's around 50k worth of fees per year.

I would probably use them for flights - business and pleasure. Have not explored what else I could use the points for.

It looks like it would be just cheaper to not even use this service?

Cheers,
IMHO, better to spend that $50k on actual flights and not have to worry about restrictive award bookings.... build up status along the way if you fly enough.
 

Bell21

Member
Joined
Jan 11, 2018
Messages
450
1579427300555.png

sorry, error in first table posted - I believe the 2.1% you refer to is GST exclusive - if I'm mistaken I'll repost table - happy to PM if you want further explanation on any facts in table
 

Community Statistics

Threads
85,758
Messages
2,039,114
Members
53,036
Latest member
KIZI
Top