Pay for your TM3 with a credit card and reap credit card rewards!

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Triangles

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#1
I wish I had discovered Plastiq a month ago before I picked up my TM3. for a 2.5% processing fee you can use a credit card where you usually cannot, like final payment on your TM3. BI had an article about a guy who did this and for just under $1.5K got about $5K in travel rewards. So if you have the cash and the 2.5% fee is less than what you'd get for travel rewards, This just might be an option. Just make sure you actually have the money to pay off the card immediately.
 
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garsh

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#2
I took a quick look at this a few weeks ago.

I only use cash-back credit cards - I don't travel enough to want to get stuck with rewards with a single travel company. On a non-gas, non-grocery, non-pharmacy purchase, the most I'll get back is 2%. So that was the end of my investigation into this approach. :)
 
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Triangles

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#3
Ordinarily I would agree but I have some travel plans later this year that It would have saved me at least double what the 2.5% fee would have been. So yeah it only makes sense if the reward is something you'd actually use and it's worth more than the 2.5% fee.
 

lairdb

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#9
I only use cash-back credit cards - I don't travel enough to want to get stuck with rewards with a single travel company. On a non-gas, non-grocery, non-pharmacy purchase, the most I'll get back is 2%. So that was the end of my investigation into this approach. :)
(Can we get much more off-topic? :)) There are a few cash rewards cards out there that do better than 2% (E.g. BofA if you qualify for Platinum Honors level can return 2.75%.) Therefore, for example, using Pay1040 which charges 1.87% could yield 0.88% net cash back -- not especially interesting on small numbers, but could be worth it on a larger payment.

Similarly, if you believe in a high valuation for certain travel points, you could regard the fee as net positive EV (expected value, not electric vehicle.)

Some resources:
https://thepointsguy.com/guide/monthly-valuations/

www.reddit.com/r/churning/comments/7kv7sm/faq_paying_federal_income_taxes_with_a_credit/

https://frequentmiler.boardingarea.com/complete-guide-to-plastiq-credit-card-payments/
 

garsh

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#10
There are a few cash rewards cards out there that do better than 2% (E.g. BofA if you qualify for Platinum Honors level can return 2.75%.)
I went to BofA's website and looked quickly, but couldn't find a cash back card that worked this way. Would you mind providing a link? Or a name and an explanation of how that works?
Therefore, for example, using Pay1040...
That can't be used for anything other than paying taxes, correct?
 

lairdb

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#11
I went to BofA's website and looked quickly, but couldn't find a cash back card that worked this way. Would you mind providing a link? Or a name and an explanation of how that works?
That can't be used for anything other than paying taxes, correct?
BofA Preferred Rewards; PointsGuy has a good writeup here: https://thepointsguy.com/2017/09/all-about-bank-of-america-preferred-rewards/ and BofA's direct link is here: https://www.bankofamerica.com/preferred-rewards/.

Right -- Pay1040 (and similar) only work for taxes; that's where Plastiq comes in, for some folks, for other bills.

I'm not as obsessive as many: I use the (previous generation) AmEx Blue Cash Preferred for groceries (6% cash) and gas (3% cash), the Chase Sapphire for travel and restaurant (about 7% ev in points) and the BofA PR for everything else (2.625% cash). I mostly don't bother with Plastiq or more complicated schemes, but YMMV.

[Edit: adjusted some mis-remembered percentages.]
 
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garsh

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#12
I'm only seeing 1.75% cash back for everyday purchases, not 2.75%.
I'm not as obsessive as many: I use the (previous generation) AmEx Blue Cash Preferred for gas (6% cash) and groceries (3% cash)
I have the original AMEX Blue Cash card. It gives 5% back on groceries, unlimited. I buy Amazon gift cards from my grocery store to do all of my other purchases. :D
 

lairdb

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#13
I'm only seeing 1.75% cash back for everyday purchases, not 2.75%.
I have the original AMEX Blue Cash card. It gives 5% back on groceries, unlimited. I buy Amazon gift cards from my grocery store to do all of my other purchases. :D
BofA: 1.5 points per dollar on all purchases, plus 0.75 bonus points if you have Platinum Honors status = 2.625% (sorry, not 2.75%); BofA PR points are directly redeemable at a penny per point.

Amex: Ha -- actually, that's the one I meant. I've got the old BCP: 6% on groceries, 3% on gas. Also, I didn't include my Amazon store account: 5% on Amazon.
 

garsh

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#14
BofA: 1.5 points per dollar on all purchases, plus 0.75 bonus points if you have Platinum Honors status = 2.625% (sorry, not 2.75%); BofA PR points are directly redeemable at a penny per point.
Doesn't sound like it. From your first link:

Points earned via the Travel Rewards Card can be redeemed to cover travel purchases on your card at a rate of 1 cent per point. You can redeem points for gift cards or cash, but you’ll get a lower value for these options so they should be avoided:
...
Cash: 4,166 points = $25
 

lairdb

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#15
Doesn't sound like it. From your first link:

Points earned via the Travel Rewards Card can be redeemed to cover travel purchases on your card at a rate of 1 cent per point. You can redeem points for gift cards or cash, but you’ll get a lower value for these options so they should be avoided:

That's the Travel Rewards card. Look at the Premium Rewards card. (Granted, as I look at that blog post, that's not entirely clear. Go straight to the BofA site, look for Premium Rewards.)

 

garsh

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#16
That's the Travel Rewards card. Look at the Premium Rewards card.
Man, you're making me work for this information.
Bank of America Premium Rewards card
Ok, so it looks like in order to get the 2.625% back, you need to:
  • pay a $95 annual fee
  • keep $100,000 or more in a BofA bank account or a Merrill Lynch investing account
Is that correct? Is there any other requirement?
 

Long Ranger

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#18
Man, you're making me work for this information.
Bank of America Premium Rewards card
Ok, so it looks like in order to get the 2.625% back, you need to:
  • pay a $95 annual fee
  • keep $100,000 or more in a BofA bank account or a Merrill Lynch investing account
Is that correct? Is there any other requirement?
Well, there is just one more thing. After you go through all of that in hopes of getting a big 0.125% reward on a Model 3 purchase (2.625% minus 2.5% Plastiq fee), you'll find out that the Bank Of America Premium Rewards VISA doesn't actually work with Plastiq:

"This card cannot be used to make payments through Plastiq as such transactions will be treated as a cash advance, and incur all cash advance-related fees & receive no card rewards."
https://plastiq.zendesk.com/hc/en-us/articles/360005215254-Visa-Personal-Card-Changes

Note that a number of other credit cards also won't work or have reduced limits when using Plastiq.
 
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lairdb

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#19
Note that a number of other credit cards also won't work or have reduced limits when using Plastiq.
Yeah, as I remarked above, I mostly don't bother with Plastiq -- too much of a PITA. (FrequentMiler's article has a good summary table of what does and doesn't work.) BofA PR with PH is a good everyday card though.
 

Omega

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#20
For future owners, let me say something short for you: NEVER USE PLASTIQ!!!

My payment was never delivered. My Tesla sale representative sent me the transaction history record every day to confirm with me. I had to file multiple complaints on BBB and Consumer Financial Protection Bureau. I was almost hiring a lawyer to file a claim against their business. If you go to BBB, there are plenty of people who stepped on the same trap with me through the paid article from Business Insider: https://www.businessinsider.com/tesla-travel-rewards-credit-card-plastiq-2018-6

Attachments below are my complaints with them. They still have not resolved my issue. Is it worth for you to go through this whole process like me? Don't, don't ever use PLASTIQ!!!

 
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