Points Intervention: Paying Bills with a Credit Card

May 29, 2015

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In Points Intervention, I help people get their awards earning on track. This month I’m working with small-business owners — just in time for them to take advantage of the Chase Ink Plus Business card’s current offer of 50,000 bonus points after a spend of $5,000 within the first three months.

Intervention: Christophe Carón Episode 3

This week I am working with Christophe Carón, owner and manager of Délice and Sarrasin, a crêperie in the West Village in New York City. He wants to choose the right business credit card for his spending and traveling patterns to maximize the accrual of points and miles, as well as benefits for his business.

In yesterday’s video, I recommended a few credit card choices that might be best for Christophe and his business, including one that gives him a percentage of cash back for every dollar he spends on the card.

Wouldn’t it be great if Christophe could use that cash-back credit card to pay all of his bills so he can get cash back for the considerable amount of spending that is required for a new business?

Christophe laments that when he pays bills online, he has to do an Automated Clearing House (ACH) transaction in which he transfers money from a bank account, instead of charging the bill to his credit card, otherwise the vendor will charge him a fee.

To Charge or Not?

I help him work out the numbers to determine whether or not the fee is worth it. With the Capital One Spark Cash for Business Card, he would be getting 2% back on his spending, so if the fee is less than that, he would still benefit. If the fee is the same, there are still advantages to using a credit card versus an ACH transaction or (gasp) mailing a check:

  • With a credit card, you have purchase protection.
  • Paying all your bills with a credit card can organize your spending better, since many companies give you analytics and spending reports.

points intervention
It Never Hurts to Ask

I can’t say this enough: It never hurts to ask for what you want. Some vendors will try to charge you a fee for paying with a credit card, but you can always ask them to waive the fee. If they want your business, they just might eat that cost themselves.

Speaking of eating, if you’re in the West Village anytime soon, Christophe recommends the kale, scallops and coriander galette — the number one item on the menu at Délice and Sarrasin!

After this high-level conversation about utilizing the right credit card for his business, Christophe might have more questions, but at least he’s off to a good start.

If you missed the previous episodes of our conversation, visit them here:

Episode 1: Saving on Foreign Transaction Fees
Episode 2: Using a Cash-Back Business Credit Card

And if you or your small business needs a Points Intervention, email intervention@thepointsguy.com.

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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