Credit Card payment for Rent

[majesus]

The other day I asked about money orders with Credit cards...
Today it is something a little different but on the same type of topic... I would like some expertise because you guys are always helpful :)


I would like to get the Canadian Tire 3% cash back card as discussed in this redflag thread. (http://www.redflagdeals.com/forums/showthread.php?t=238544&page=1&pp=15)

However, to get myself into the 3% cashback tier, I must spend more than $1500/month. Now I can't do that, unless I can pay my rent using my Credit Card.

In otherwords: I am trying to get myself into a credit card monthly spending bracket that enables me to receive the 3% cashback through this credit card. If I can use my rent as leverage, then I'd get 3% cash back reward for my groceries, items, etc...

I live in an apartment building, but management does not take credit card as a method of rental payment. Is there a service (a company) in Canada that pays my rent "Vancouver Apartment Management Ltd" but then charges me by credit card. I don't care if this company charges a service fee, as long as its less than 3% because the credit card cashback reward back will cancel this fee.

Doubt this service exist.

I thought maybe money orders could work.
But I learnt from my last post, you can't purchase money order on credit. (Makes sense)

[ynot]

The problem with CCs is that the vendor, in this case the Landlord, has to pay somewhere between 2-5% (depending on the CC) fee for having such a service available. So, it's unlikely a company would offer this service if they can't charge you more than 3%.

[mork]

The other day I asked about money orders with Credit cards...
Today it is something a little different but on the same type of topic... I would like some expertise because you guys are always helpful :)


I accept credit cards for rent... sort of. I had a tenant that REALLY wanted to pay by automatic withdrawal as he didn't trust himself to be able to stay on top of his rent without it.

So.. we used Paypal.. :) You can setup up a 'subscription' and he can pay by whatever means Paypal accepts (including CC or bank withdrawal).

As someone above noted, nothing is free.. it cost me a few bucks, but I didn't mind as it saved me the hassle of chasing down the rent-cheque every month.

Like someone said above, merchants pay CC fee's.. that 2-3% cashback you get comes from somewhere (not from the generosity of the CC company).

[majesus]

True. I know what you mean. I just wanted to swing it by RFD and see what came out. Thanks for the input.

[a_1_a]

I accept credit cards for rent... sort of. I had a tenant that REALLY wanted to pay by automatic withdrawal as he didn't trust himself to be able to stay on top of his rent without it.

So.. we used Paypal.. :) You can setup up a 'subscription' and he can pay by whatever means Paypal accepts (including CC or bank withdrawal).

As someone above noted, nothing is free.. it cost me a few bucks, but I didn't mind as it saved me the hassle of chasing down the rent-cheque every month.

Like someone said above, merchants pay CC fee's.. that 2-3% cashback you get comes from somewhere (not from the generosity of the CC company).
what do you mean by 'You can setup up a 'subscription' ?

[Drew_W]

what do you mean by 'You can setup up a 'subscription' ?

Recurring billing.

[rilhouse]

most cc's offer cheques that you can write on your cc account. however they are treated as cash advances and the interest starts the day they are cashed.

[gman]

most cc's offer cheques that you can write on your cc account. however they are treated as cash advances and the interest starts the day they are cashed.

Cash advance gives you no reward.

[ratface]

Use Paypal to pay yourself by cc, then withdraw the cash and use it to pay your rent. Paypal cc fee is 2.9% + $0.55.

[Sylvestre]

back in 01 I rented an apartment in Ottawa, from Minto. They allowed CC rent payments

[Drew_W]

Use Paypal to pay yourself by cc, then withdraw the cash and use it to pay your rent. Paypal cc fee is 2.9% + $0.55.

This is using PayPal to do a cash advance and is strictly against PayPal and your credit card's rules. They have automated systems that sniff out this sort of stuff and they will cancel your account if you do it.

[HoTiCE_]

Pay someone else then...get someone you trust and have him set up something as if you're paying for a magazine subscription

[st7860]

Use Paypal to pay yourself by cc, then withdraw the cash and use it to pay your rent. Paypal cc fee is 2.9% + $0.55.

make sure you setup the second paypal account from a different IP and different PC.

or, alternatively, you could buy some CIBC Aeroplan checks from people. go to www.deja.com and search for "aerogold checks"

[mork]

Use Paypal to pay yourself by cc, then withdraw the cash and use it to pay your rent. Paypal cc fee is 2.9% + $0.55.

This fee likely kills the reward he seeks (1% or 2%) and results in a net loss.

[majesus]

I also thought of the Paypal idea... using it as a cash advance to myself: 2.9% + 50 cents is less than the 3% cashback on the CC.

But good thing you said it is against Paypal's rules... I didn't know that. I was going to contact them anyways...

However, why would PAYPAL care?
They still make the 2.9% off the transaction. It is the CC that loses out. But then some CC are offering 0% balance transfers such as CITI or MBNA (MBNA has a 1% transfer fee thou.) The Canadian Tire CC is offering a 3% cashback, they are hoping that people would default on their payments and thus the CC would make their money back.

Why would the CC care if I charged myself a bill with paypal to get a Cash advance... In the end it is just another CC transaction that I still have to pay back.

[Gee]

back in 01 I rented an apartment in Ottawa, from Minto. They allowed CC rent payments

The Minto Suites?

They are a hotel downtown

[HoTiCE_]

I also thought of the Paypal idea... using it as a cash advance to myself: 2.9% + 50 cents is less than the 3% cashback on the CC.

But good thing you said it is against Paypal's rules... I didn't know that. I was going to contact them anyways...

However, why would PAYPAL care?
They still make the 2.9% off the transaction. It is the CC that loses out. But then some CC are offering 0% balance transfers such as CITI or MBNA (MBNA has a 1% transfer fee thou.) The Canadian Tire CC is offering a 3% cashback, they are hoping that people would default on their payments and thus the CC would make their money back.

Why would the CC care if I charged myself a bill with paypal to get a Cash advance... In the end it is just another CC transaction that I still have to pay back.

They care because normally they charge you 3894723748923749% interest on cash advances on your CC while doing it Paypal way will *only* get them 2.9% + 50cents.

[Drew_W]

I also thought of the Paypal idea... using it as a cash advance to myself: 2.9% + 50 cents is less than the 3% cashback on the CC.

But good thing you said it is against Paypal's rules... I didn't know that. I was going to contact them anyways...

However, why would PAYPAL care?
They still make the 2.9% off the transaction. It is the CC that loses out. But then some CC are offering 0% balance transfers such as CITI or MBNA (MBNA has a 1% transfer fee thou.) The Canadian Tire CC is offering a 3% cashback, they are hoping that people would default on their payments and thus the CC would make their money back.

Why would the CC care if I charged myself a bill with paypal to get a Cash advance... In the end it is just another CC transaction that I still have to pay back.


Because it's a CASH ADVANCE, not a payment for a good/service. Any merchant can get into serious trouble if they use their processing to do cash advances for people.

[Drew_W]

I also thought of the Paypal idea... using it as a cash advance to myself: 2.9% + 50 cents is less than the 3% cashback on the CC.

Are you joking? For 0.1%? If you pay $9000/yr in rent, that's a whopping $8.45 ($9-$0.55) savings. Wow.

[majesus]

Are you joking? For 0.1%? If you pay $9000/yr in rent, that's a whopping $8.45 ($9-$0.55) savings. Wow.

Yup... good job. But if you read the OP, It wasn't the 0.1% savings that I was after...


They care because normally they charge you 3894723748923749% interest on cash advances on your CC while doing it Paypal way will *only* get them 2.9% + 50cents.

Yeah that's what I thought too... But then I mentioned the 0% Balance transfers for a year that Citi and MBNA were offering. Not that it is a Cash Advance... But if CC companies offer this type of interest rate for this type of service, why not continue for the cash advance method. I know what you mean... NOT a way for them to make the big bucks! But in a sense Paypal lost the 2.9% income... Because now I won't do it.

Besides it isn't convienent method for getting a cash advance. You still have to wait for PAYPAL to deposit the amount into your account. Which is a while. So I question if it is worth while for some people to do it...

All well, not trying to badger anyone... Just curious about the system.
As always... Thanks for the input.