Using a credit card to pay income taxes, municipal taxes, or utility bills might seem unwise due to the fees often associated with this service. However, if you’re looking to meet the minimum spending threshold for welcome bonuses on certain credit cards, it could be a beneficial choice, even after considering the associated costs. Thankfully, one platform facilitates this process – paysimply.ca.
Introducing Paysimply.ca
Paysimply.ca is an online platform that allows you to make credit card payments for bills – at a cost – and converts these payments into electronic bank transfers recognized by the service providers. This option is particularly useful for settling payments with entities that only accept direct bank transfers, such as the Canada Revenue Agency, various municipalities, and numerous utility companies.
Due to the typically high amounts due, many individuals prefer credit cards for payment, enabling them to accumulate points that could outweigh any incurred fees.
Steps to Pay Taxes and Bills Using a Credit Card
Paying your bills and taxes is straightforward. Follow these simple steps:
- 1. Visit paysimply.ca and search for the service provider you need to settle. For instance, “City of Toronto.”
- 2. Click on the appropriate search result.
- 3. Input necessary details, such as your name, account number, and the payment amount.
- 4. Select your payment method.
- 5. Fill in your payment information and confirm the transaction.
Upon completion, you’ll receive an email confirming your transaction, and the payment will be processed as per your provided details.
What are the Fees for Using Paysimply.ca?
Paysimply.ca imposes a 2.5% fee on all credit card transactions. For instance, a $5,000 charge would incur a $125 fee.
They accept payments via Visa, MasterCard, and American Express, with consistent fees across all issuers.
Is Utilizing Paysimply.ca a Good Idea?
While paying your taxes or bills directly via your bank account incurs no fees, it’s worth considering Paysimply under specific circumstances.
Achieving Minimum Spend Requirements
Using a credit card for taxes or bills can help you meet the minimum spending requirements of new cards. This is especially significant for some of Canada’s top credit cards, which often have high thresholds to unlock welcome bonuses.
For example, the American Express Platinum Card, recognized as one of Canada’s leading travel cards, typically offers a welcome bonus ranging from 70,000 to 120,000 points, but it demands a minimum spend of $7,500 to $10,000 within the initial three months. Utilizing Paysimply to cover taxes or bills can assist in achieving that spending threshold.
Value Exceeds the Cost
If the points accrued from bill payments surpass the 2.5% fee, Paysimply could be a worthwhile option. Loyalty programs often run promotions that reward bonus points or status for reaching spending minimums within a designated timeframe, akin to receiving a welcome bonus but with different incentives.
Managing Cash Flow
Late payments on taxes and bills often lead to penalties, posing challenges for those who may not have immediate funds available. With Paysimply’s option to use credit cards, you gain at least 21 days of interest-free grace before payment is due. This can be an advantageous solution for individuals expecting incoming funds soon but who presently lack liquidity.
Even though a 2.5% fee might appear substantial, if you’re using a cashback credit card, you may earn up to 2% back, effectively reducing your net cost to only 0.5%. Nevertheless, this cash flow management strategy is only beneficial if you’re diligent about paying your entire credit card statement promptly to avoid high-interest rates.
Do You Need an Account with Paysimply.ca?
No account creation is necessary to make a payment through paysimply.ca. Since there is no option for account registration, you won’t have to remember additional login details. However, this means you will have to re-enter your information each time you decide to make a payment, as credit card details cannot be saved. On the plus side, your information remains secure since it’s not stored on the platform.
Keep in mind, though, that you cannot access a payment history, so it’s crucial to retain your confirmation emails and detailed records.
Concluding Thoughts
I have a favorable impression of Paysimply. Although I wouldn’t advocate for using it for regular tax and bill payments due to the processing fee, it serves as an excellent tool for anyone aiming to meet credit card minimum spending requirements. Welcome bonuses can often surpass $500, ensuring you benefit even after accounting for the fee. If your property taxes amount to several thousand dollars per year, making a payment through this platform could justify applying for one of the premier travel credit cards to benefit from available welcome bonuses.