RewardPay for IRD/ACC Payment with AmEx Card

inmeltingpot on 04/01/2023 - 00:33
Last edited 04/01/2023 - 00:34

Hello Cheapies,
Has anyone used RewardPay to pay for IRD or ACC payment with AmEX card?
Link is here:
https://www.rewardpay.co.nz/pay-with-rewardpay.htm

I have revently got the Airpoints Platinum Amex card and am trying to use $1,500 to get the bonus 300 airpoints dollars.
I have seen an ad from Facebook about this RewardPay (it sounds like I pay them with my AmEX card, then they will do the direct credit to ACC/IRD), but to be honest it sounds a bit dodgy and not sure whether I can trust them.
Perhaps I should ask IRD whether this is a legit?
If there is anyone who used this successfully, please share your experience with cheapies.
Or any other AmEX tips for a first user like me.

Cheers.

General Discussion

Related Stores

RewardPay
RewardPay

Comments

  • mattk1 on 04/01/2023 - 04:04

    Haven't used it, but note in the T&Cs is you need to be a New Zealand Business with a New Zealand business number. They charge 1.67%, which seems low for an Amex payment.

    • inmeltingpot on 04/01/2023 - 10:28

      Thanks. I'm just self-employed with IRD number but without a NZBN, so it seems like I can't sign up for their service!

      • Alan6984 on 04/01/2023 - 10:34

        Not sure on this, but can't you get an NZBN for the business that you run in your own name?

        Also, I would seriously consider incorporating and transferring the business into a company regardless - might be much less risky for you.

  • bigcheese on 04/01/2023 - 07:17

    Seems legit.
    Here’s a recent review on MoneyHub.

  • gooddeals on 04/01/2023 - 16:01
    +2

    If the purpose is to spend the $1500 then spending normally and buy paknsave Christmas club card and top up your spent to $1500 assuming you shop at paknsave. Over Christmas you also get extra money from Christmas club and no extra credit charge.

    • huffboy on 04/01/2023 - 17:51

      can you top up a christmas club online? or just in store?

    • n908671 on 05/01/2023 - 09:05

      Or buy supermarket giftcards (Countdown or wherever you shop)- you miss out on the Christmas Club rewards but can use them anytime from now rather than waiting until the end of the year.

      • gooddeals on 05/01/2023 - 10:17

        Pak n save Christmas club can be used any time actually. Only the amount left at the end of Nov counts towards bonus.

        Note countdown Christmas club do not topped up via credit card currently.

  • gooddeals on 04/01/2023 - 18:33
    +1

    In store or online. See FAQ. https://www.paknsavechristmas.co.nz/faqs#q10

  • AssociatedChloe @ RewardPay on 05/01/2023 - 16:24

    @inmeltingpot
    @bigcheese

    You are correct RewardPay has recently launched in New Zealand in partnership with American Express and working closely with the IRD. RewardPay enables NZ business owners to use their Amex card ( business or personal) to make payments to the IRD or ACC. RewardPay has been in Australia for 10 years successfully and has now extended the offering to New Zealand business owners.

    RewardPay is the only way in New Zealand to pay the IRD with your Amex. The key benefit is earning extra points for paying bills you pay anyway and use these points for free flights, accommodation etc for you and your family / work colleagues. Feel free to contact RewardPay on 0800 449477 or speak to your Amex account manager or the IRD for further clarification.

    I hope that helps a little, I'm happy to answer any other questions as I'm part of the RewardPay team.

    • inmeltingpot on 05/01/2023 - 17:03

      So I am going to do GST return soon, what do I need to do from IRD-end when I finally file the GST? Do I choose Direct Credit payment option from IRD, then pay to RewardPay with AmEx card - then RewardPay will do the direct credit to IRD?

  • AssociatedChloe @ RewardPay on 05/01/2023 - 17:38

    Yes, you need to chose the Direct Credit option. You will then need to make your payment via RewardPay www.rewardpay.co.nz. Please note that your payment to the IRD via RewardPay will be paid the next business day after you submit your payment.

  • Madao on 02/05/2023 - 17:23

    Thought I'd add to this discussion rather than starting a new forum topic.

    I used Reward Pay to cover last years personal tax bill a few weeks ago and have used again to cover this years provisional tax. Simple to use and a separate invoice for the fee, which is tax deductible.

    No big fancy company, just a LTC with a couple investment properties (don't boo me). All up, with my Amex card's earning rate, is about 26,000 membership reward points earnt. Not to be sniffed at.

    • rkl on 02/05/2023 - 17:29

      Good to know. Im in the process of getting myself setup with Amex cards do do this for the business.
      Found out I can get a free gold card via one of my suppliers, so might do that

    • sunshinenz on 02/05/2023 - 21:35

      So if your tax bill is say 20k per payment you'll need a credit card limit of around 20k? Is it easy to get a 20k limit with Amex?

      • Madao on 03/05/2023 - 05:45

        Perhaps easier if a business CC however the personal Amex Platinum card is a charge card, in theory no limit as terms are the balance has to be repaid in full each period.

        Alternatively, pay 20k to the CC so it’s in credit then make the Reward Pay Payment

        • sunshinenz on 13/05/2023 - 16:33

          I've seen that membership reward points don't expire. But is that still the case if you close your Amex card?

    • Joe on 18/02/2024 - 14:14

      Boo :)
      Have pm'd you

  • sunshinenz on 03/05/2023 - 14:25

    If my company total gst+income tax bill is 100k, Reward Pay fee is $1,670, or $1202 after company tax rate of 28% ($1019 after 39% tax rate).
    Paying 100k earns me 200k membership points = 1,333 Airpoints dollars, so profit = $131.

    (You'll probably get better value by converting the membership points to other airlines points and using on business class tickets, but doesn't suit my case.)

    If I use my visa card to pay, the convenience fee is 1.42%, so $1,420 (=$1,022 after tax). If I get 2.5% reward from my BNZ visa card through petrol = $2,500, then profit =$1,478.

    Am I missing something here? Will using my visa to pay IRD be considered as tax advances? I've never used credit cards to pay tax bills.

    • Alan6984 on 03/05/2023 - 15:31

      Give BNZ a call and ask them?

    • Madao on 03/05/2023 - 15:50

      Agree, converting to Airpoints or retailer vouchers isn't the best use of MR points. Targeting rewards seats - business, premium or even economy - is the way to go but fair enough if that doesn't suit your need.

      Unsure what you mean with 2.5% reward through petrol? My understanding is paying IRD direct with a credit card wouldnt be considered a cash advance by CC company.

  • sunshinenz on 03/05/2023 - 16:30

    If I use my BNZ visa card to pay 100k, I get 6,667 flybuys. For every 4 flybuys I get 3c/litre off for up to 50 litres, so 6667 flybuys gives me 6,667/30.0350=$2,500 worth of petrol at Z or Caltex, which is well over $1,000 worth of "profit".

    I used credit card to pay for council rates before. It had a convenience fee of nearly 2% but wasn't treated as a cash advance.

    • sunshinenz on 03/05/2023 - 18:37

      6,667/4 x3 x50=$2,500

    • bigcheese on 03/05/2023 - 18:43

      Doesn't the Z Fuel through Flybuys need to be used by the end of the month after you received the credit?
      $2500 is a lot of petrol to use in that time!

      • sunshinenz on 03/05/2023 - 19:03

        There are at least 4 tax payments, so expect no more than $700 per payment, $700 over almost 2 calendar months is not a lot. We fill up 3-4 tanks each month.

        • bigcheese on 03/05/2023 - 19:08

          I was wondering how you would possibly use $2500 in such a short period.
          $700 makes a lot more sense.

  • sunshinenz on 03/05/2023 - 22:25

    According to this website, paying tax bills by credit card is effectively treated as cash advances
    https://www.finder.com/nz/pay-your-tax-bill-by-credit-card

    Some cards that offer interest-free days specify they are only available for “eligible purchases”. As paying the IRD is not considered an eligible purchase, interest is charged from the date you pay your tax bill.

    No, you cannot earn Airpoints when you pay your tax bill using an Airpoints credit card because it is not classed as eligible spending.

    But this site says you can earn points
    https://generateaccounting.co.nz/2014/09/08/can-i-pay-tax-wi…

Login or Join to leave a comment
Login Join