Wikipedia:Reference desk/Archives/Miscellaneous/2016 November 28

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November 28

Using credit card to pay rent

I would like to maximise the loyalty points I can amass on my credit card by using it to pay my rent. Of course, my landlord will only accept bank transfers, not credit card payments. Is there any way I can arrange it via some kind of transfer mechanism so that I am effectively using my credit card to pay my rent? This is in the UK. Thanks, --Viennese Waltz 09:17, 28 November 2016 (UTC)

The users on this Reddit thread think it's not possible, unless your landlord agrees - though a quick google shows a lot of warnings against doing it, which implies that at least some landlords will. It's worth noting that the landlord (or intermediary) will be paying a fee to the credit card company which will dwarf your cashback, so expect this to be reflected in your next rent rise or in the fees changed by any intermediary. It is possible to make your rent improve your credit score (see this article from moneysavingexpert), which might enable you to get better credit card/loan/mortgage deals down the line. MChesterMC (talk) 11:37, 28 November 2016 (UTC)

Only those who are registered with a provider to receive credit card payments can take payment by that method. A quick check suggests that large social landlords (councils and housing associations) do accept that method of payment, and it is possible that larger letting agencies may do so on behalf of private landlords. However, if you are paying directly to a private landlord who only has a small number of properties, it is very unlikely that it would be financially sensible for the landlord to register for card services - it isn't cheap.Wymspen (talk) 12:58, 28 November 2016 (UTC)

There are services, Paypal is the largest, that act as intermediaries to allow private individuals and small businesses to accept payments via credit card. As I recall, Paypal will charge 2.9% + $0.30 on credit card transactions. A trusting landlord might be convinced to accept Paypal transactions from a long-term tenant, but they would probably want to be compensated for the transaction fees. Dragons flight (talk) 13:09, 28 November 2016 (UTC)

Thanks for the replies. To clarify, what I am looking for is an arrangement whereby the landlord is still receiving money as usual direct from my bank account, with no intermediaries. He won't accept paypal or anything like that, it must be the same as usual. I googled the subject myself and found this forum thread which has an interesting post from someone who claims that it is possible to do it using Bitcoin. That's the kind of thing I'm looking for. --Viennese Waltz 13:41, 28 November 2016 (UTC)

If you just want to earn loyalty points, you don't even need to pay rent. Open up a Paypal account linked to your bank, and then use your credit card to pay yourself via Paypal. Each cycle you lose ~2.9% of the transaction but gain loyalty points. As loyalty program are generally tuned to pay back 1-2%, you'd probably lose on such a scheme, but maybe you really want the points? Because credit cards charge transaction fees to the recipient, almost any scheme that uses a credit card, whether it is via Paypal, Bitcoin, or some other medium, is going to cost you money over time. If it didn't then the transaction processor would be losing money. As I recall there was a program several years ago to promote Sacajawea dollars where the US Mint would let you buy them with no transaction fees and no shipping. The program was quickly abused by people willing to buy hundreds of thousands of gold dollars just to earn loyalty points, and so the free program was shut down. Dragons flight (talk) 14:05, 28 November 2016 (UTC)

Square is cheaper than paypal. They send you a free dongle for your phone, and you can link the app directly to a bank account. They charge 2.75% for a swiped transaction, which is cheaper than paypal. And you can deposit directly into your checking or savings account. So, if you wanted to do that scheme, you lose less using a Square reader than using a paypal account. --Jayron32 14:17, 28 November 2016 (UTC)

Be sure to check your cardholder agreement to see if PayPal or Square purchases are eligible to generate loyalty points. In some cases, credit card companies exclude this to prevent fraud (e.g. somebody paying themselves on PayPal using their credit card).--WaltCip (talk) 17:47, 28 November 2016 (UTC)

Read the terms very carefully. I did that with Square ages ago and they terminated my account. You can't charge/transfer for yourself. 🔯 Sir Joseph ^🍸(talk) 17:48, 1 December 2016 (UTC)