Using a credit card to settle your income taxes, municipal taxes, or utility bills might seem impractical due to the associated service fees. Nevertheless, if your credit card offers a welcome bonus contingent upon reaching a minimum spending threshold, utilizing this approach can prove financially beneficial, despite the costs incurred. Paysimply.ca is the platform making this payment method viable.
What is Paysimply.ca?
Paysimply.ca is a web-based service that allows users to make payments via credit card—albeit with a fee—and transforms these transactions into electronic transfers accepted by various service providers. This feature is particularly useful for settling payments that typically require bank transfers, such as those directed to the Canada Revenue Agency, local municipalities, and several utility firms.
As some of these payments can amount to significant sums, opting to pay with a credit card is advantageous for earning points, which can outweigh any incurred fees.
How to Use Credit Card for Bill Payments
The process for paying taxes and utilities is straightforward. Just follow these steps:
- 1. Visit paysimply.ca and enter the name of the supplier, such as “City of Toronto.”
- 2. Select the appropriate search result.
- 3. Provide required details including your name, account number, and payment amount.
- 4. Opt for your payment method.
- 5. Input your payment information and finalize the transaction.
Following this, you’ll receive an email confirmation of the transaction, and the payment will proceed as per your supplied details.
What are the Costs of Using Paysimply.ca?
For credit card transactions, Paysimply.ca imposes a fee of 2.5%. For instance, a payment of $5,000 would incur a charge of $125.
The platform accommodates payments via Visa, MasterCard, and American Express, applying the same fee across all card providers.
Is Paysimply.ca a Smart Choice?
For those who can process payments through their bank without fees, Paysimply might not appear attractive. However, in specific scenarios, it can provide substantial advantages.
Hitting Minimum Spend Targets
Using a credit card for tax or bill payments enables quick achievement of minimum spending requirements for new credit cards. This is particularly important for obtaining welcome bonuses linked to some of Canada’s top credit cards.
Take, for instance, the American Express Platinum Card, recognized as one of the premier travel cards in Canada. It often presents a welcome bonus ranging from 70,000 to 120,000 points, but necessitates a minimum spend of $7,500 to $10,000 within the first three months. Making payments through Paysimply can help meet that spending criterion.
Greater Value than Cost
If the value of the points earned through bill payments surpasses the 2.5% fee, then Paysimply is certainly worth considering. Certain loyalty programs may have limited-time offers allowing bonus points or status earned if specific spending thresholds are met during a defined period. This mechanism closely resembles receiving a welcome bonus, albeit in a different format.
Cash Flow Management Needs
Missing payment deadlines for taxes and bills often leads to penalties, which can create complications for individuals lacking immediate funds. Paysimply allows credit card usage for these payments, providing at least 21 interest-free days before the payment is due. This can be an effective approach for those who expect to have the necessary resources soon.
While the 2.5% fee might seem steep, utilizing a cash back credit card could potentially yield a 2% return. Consequently, your effective fee could reduce to just 0.5%. However, it’s crucial to ensure the full statement balance is paid on time to avoid high interest rates on credit cards.
Do I Need to Sign Up for Paysimply.ca?
No account creation is required to process payments through Paysimply.ca. In fact, the platform does not offer an account setup option, eliminating the need to track yet another login. However, it means starting over for each transaction, as you cannot save your credit card details. On a positive note, since your information isn’t stored, there’s no risk of it being compromised.
An important consideration is that you won’t have access to a payment history, reinforcing the necessity to keep your confirmation emails and detailed records.
Conclusion
Overall, I find Paysimply to be a worthwhile service. While the 2.5% processing fee may deter regular use for taxes and bills, it’s an excellent avenue for reaching minimum spending requirements on credit cards. Since welcome bonuses can exceed $500 in value, factoring in the fees will still leave you with a net gain. If your annual property taxes amount to several thousand dollars, it’s a sound strategy to apply for a premium travel credit card to maximize your benefits when making payments.