What business credit card is best for $250,000 month spend for travel?

By Dewy | Jan 17, 2019, 10:54 PM
We secured a deal with a supplier to pay $250k+ / month on a credit card facility to obtain interest free days and flyer points.
We are currently banking with ANZ and they are suggesting ANZ black to 250k with .5 points converted to QF points as an example, giving us 125,00/month, more than enough I think (new to this) to get us a heap of trips annually for owners and staff.
I've ben following this community for ages, yet i'm still unsure if this CC is a good deal or not with our potential points accrued???
And i'm such a newbie I "assume" the points get assigned to a FF programme that I can access flights easily? and transferred to staff?
sounds like a lot I know but the whole area seems very confusing.
Be grateful to any help at all as i'm really inexperienced with this space.

Thanks
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By sid | Jan 18, 2019, 05:39 AM
Can you pay by Amex? The Platinum Charge card will net you 1.125 points per dollar from April.
Last edited by sid at Jan 18, 2019, 05.40 AM.
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carl@hebelinnovations.com.au

By MRYJDrake | Jan 18, 2019, 09:14 AM
Chris is going to have a lot of fun when he sees this one
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By Dewy | Jan 18, 2019, 12:20 PM
Can you pay by Amex? The Platinum Charge card will net you 1.125 points per dollar from April.
Last edited by sid at Jan 18, 2019, 05.40 AM.

I will check on Amex, I think they mentioned that would be a charge over the agreed no fee for Visa, Mastercard, worth asking the question, thanks.
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By mnc | Jan 18, 2019, 08:59 PM
i'd be suprised if there isnt a surcharge passed on for AMEX
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By Dewy | Jan 18, 2019, 11:17 PM
Looks like I might have a small surcharge maybe .75-1% using Amex, looks like that could be worth paying?
With accumulating a lot of points like this in a small business can you then via a FF programme buy tickets for others? like staff, family etc, would really like to give to staff as rewards for their hard work?
Should I get a AMEX platinum and then assign to whichever FF programme I want considering the potential to accrue a good number of points?
If so I think i'll go AMEX and ANZ black for all other purchases that Amex don't cover, has anyone done that?
cheers all
Last edited by Dewy at Jan 18, 2019, 11.18 PM.
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By Hockey Monkey | Jan 19, 2019, 01:03 AM
Bank of Melbourne / St George / Bank SA Signature Visa give uncapped 0.825 point per dollar once the annual birthday bonus is factored in
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By Dewy | Jan 19, 2019, 02:54 PM
Dewy - If 250K is the spend per month then you need to approach each financial institution and ask for their best offer to obtain your business. YOU are in the power position here my friend. Put out a tender and make them compete for you.
B

OK, never really thought of it like that at all. So will they then maybe tailor it to our needs in there offer as well? There is a chance the monthly spend will go up to $400k so maybe that again makes it more enticing for the banks to compete for the business? I didn't mention that as I thought it mightn't be what they offer on cc. I've got some learning to do in this space, sounds like some negotiating going on next week.
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By Dewy | Jan 19, 2019, 08:38 PM
Is there an easy way to filter the CC offers to show only unlimited points earning and those offering choice of where you send points to? seems there are only a few form looking through the lists here.
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By Hockey Monkey | Jan 20, 2019, 10:37 PM
Is there an easy way to filter the CC offers to show only unlimited points earning and those offering choice of where you send points to? seems there are only a few form looking through the lists here.

Not to my knowledge. I think it is only the Westpac Black or St George / Bank of Melbourne Signature card in the Visa/MC category that has unlimited QF points at 0.75 per dollar or greater with the latter having the 10% annual birthday bonus
Last edited by Hockey Monkey at Jan 20, 2019, 10.51 PM.
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By Dewy | Jan 21, 2019, 07:10 PM
Chris is going to have a lot of fun when he sees this one

Hopefully in a good way...
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By bobbinbrisco | Jan 23, 2019, 08:52 AM
Got to remember with credit cards there's a limit so you are asking for the bank for at least 250k and flexibility upwards.. probably less hassle with a charge card
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By Dewy | Jan 23, 2019, 12:06 PM
Got to remember with credit cards there's a limit so you are asking for the bank for at least 250k and flexibility upwards.. probably less hassle with a charge card
i'm thinking it might be a bit of both (Amex & CC) as the charge card does all I want but on a $3m+ spend annually IF I incur the fees (or reduced part of them like 1%) its circa $30k, but I don't have to provide residential security on the charge card, so that frees up capital for investment instead, catch 22 a bit I think.
AMEX greater points earn but increased fee cost v CC security less points.
I'm leaning towards CC as we will spend a large dollar amount on it, so points volume shouldn't be the focus even if earn is .5 - .75 per $1 spent.
On a CC I can pay this $250k / month without a fee, so seems the field is narrowing.
Now to find a CC that lets me sweep wherever I want rather than locked to an airline ... any suggestions welcome.
Cheers

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By ChrisCh | Jan 23, 2019, 12:54 PM
While we can't provide readers with personal financial advice, we can suggest simply looking at the AMEX Qantas Business Rewards Card as well, which has an annual fee of $450 yet an uncapped earn rate of 1.25 Qantas Points per $1 spent on most purchases, compared to 1.125/$1 on the Business Platinum Charge Card through Membership Rewards from April (and the Platinum's much higher $1750 annual fee), as the QBR card earn rate isn't changing.

If you spend lots on Qantas flights, the QBR card also earns more points on those bookings giving 2/$1 spent from the card, and triple Qantas Business Rewards points earned from the flight itself into a business' QBR account. However, on insurance and utility payments, the earn rate is only 0.5/$1 (versus 1.125/$1 on the Business Platinum from mid-April), so you'd need to do your own sums and pick the card that works best for you.

As one final note on points, the QBR card credits these to a business' QBR account - not to a personal Qantas Frequent Flyer account - and from there, they can be converted by the business to any Qantas Frequent Flyer member and used accordingly, whereas AMEX Membership Rewards points can only be converted into frequent flyer points when transferring to the primary cardholder's personal frequent flyer accounts, and some programs (like Qantas, KrisFlyer etc.) have restrictions as to who those points can be used for, so you need to think about that as well if you were planning to use points for client or employee travel.
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By Dewy | Jan 23, 2019, 02:19 PM
Thanks Chris, that last paragraph is an important one for me, so I will dig into that for sure.
Does anyone know is an AMEX credit card is viewed when paying fees? e.g a company I deal with charges 2,5% for AMEX, 1% for CC, so technically its a credit card right???
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By ChrisCh | Jan 25, 2019, 03:00 PM
Thanks Chris, that last paragraph is an important one for me, so I will dig into that for sure.
Does anyone know is an AMEX credit card is viewed when paying fees? e.g a company I deal with charges 2,5% for AMEX, 1% for CC, so technically its a credit card right???

Sorry Dewy, I'm not sure what you're trying to ask there, but if you meant to ask whether AMEX credit cards and AMEX charge cards are processed in the same way by merchants, the answer is yes: to them, you're simply paying by AMEX.

Unlike Visa and Mastercard which can charge fees at a whole host of different processing rates depending on where the card is from, the type of card and so on, in Australia, businesses normally pay a set fee to process AMEX transactions, which is the same whether it's a credit card or a charge card / a business, personal, corporate or government card / a standard, gold, platinum or 'black' card, and so on. As a fun piece of trivia, businesses that accept AMEX in Australia can also automatically accept JCB cards, which are processed over the same network as AMEX with the same transaction fee as AMEX, which is handy for businesses who get lots of customers from Japan, particularly those in the tourism and leisure industries.
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