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The upside of Amex changes in April 2019

B2Bpay still the most profitable way to pay all of your business expenses.

On 15 April 2019, American Express made changes to points earning and redeeming rates. You can visit their website here and see how your card has changed.

The good news is, regardless of which card you have; you are still better off using your American Express card to pay all your business payments using B2Bpay to earn credit card points, and to earn Qantas Points on top of that. Although the points transfer value has reduced by up to 50% when transferring your American Express Rewards Points to airline points, the earn rate has doubled or more than doubled on some cards.

As Steve Hui ‘The Points Whisperer’ founder of iflyflat.com.au helps business with strategies to earn more points says “ensuring you have the right card is the first step, then deciding where to travel is the second step”. “Then you can focus on using it to maximise points and that’s where B2Bpay comes in by helping you earn full points on bills like your ATO BAS bill and by earning extra Qantas Points too”.

B2Bpay is reducing American Express card processing fees

Some more good news is that as of 17 April 2019, B2Bpay reduced card processing fees for paying with American Express cards from 2.4% to 2.2% (1.54% after tax deduction) excluding GST.

So which cards earn more points than before?

A good example of this is the  American Express Platinum Business Card and the American Express Platinum Card.

B2Bpay payments fall into the ‘all other spend’ category’ ,with this earning rate:

Before 15 April:              1 Membership Reward point per $1

From 15 April:                 2.25 Membership Reward points $1

In addition to these changes to the points you earn, American Express has also halved the redemption rate for when transferring Membership Rewards points to airline or hotel points.

But, because the earning rate has more than doubled, you are still ahead and will earn more points than before. Plus you will pay the reduced B2Bpay processing fee.  Winner!

Example:

Let’s use paying the ATO as an example of how you can earn even more points using B2Bpay after 15th April…

A customer uses B2Bpay to pay a $10,000 ATO bill (or any other bill):

Before 15 April:

Earn 10,000 American Express Membership Rewards Points

= this can be transferred to 10,000 Qantas Points

Plus at least 100 Qantas Points from B2Bpay

TOTAL: 10,100 Qantas Points 

From 15 April:

Earn 22,500 American Express Membership Rewards Points

= this can be transferred to 11,250 Qantas Points

Plus at least 100 Qantas Points from B2Bpay

TOTAL: 11,350 Qantas Points