🚀 go-pugleaf

For David Ades, yes, his plan is perfect. For HIM. However, in my 
case, Hell will freeze over before I pay ANYONE, ANYTHING to use my 
credit card to pay ANY kind of bill. Period. End of story.

"Alan Baggett" <AlanBaggett@volcanomail.com> wrote in message 
news:a6a08b74-5189-4c18-a108-b7591482d003@googlegroups.com...
> Paying your income tax bill with a credit card : CRA SOTW
>
> Plastiq lets you use a credit card to pay taxes owing to the 
> Canada Revenue Agency, but beware high interest rates.
>
> By:Ellen RosemanOn Your Side, Published on Tue Apr 23 2013
>
> David Ades recently did his 2012 income tax return. He found he 
> owed $10,000 to the Canada Revenue Agency.
>
> While most people write cheques to cover any taxes owing, Ades 
> used his CIBC Aerogold credit card and received Aeroplan points 
> in return.
>
> The Canada Revenue Agency is giving taxpayers a plastic option 
> this year � or to be more specific, a Plastiq option.
>
> You can use your Visa, MasterCard or American Express credit card 
> to pay your tax bill if you go through an online payment company 
> called Plastiq.
>
> Ades is chief revenue officer for Boston-based Plastiq , a 
> startup company owned and run by two 23-year-old Harvard 
> University graduates.
>
> Before taking the job, he was senior vice-president of sales and 
> marketing at Moneris Solutions, one of North America�s largest 
> payment processors.
>
> �They�re youngsters,� he says about chief executive officer Eliot 
> Buchanan and chief operating officer Daniel Choi. �In aggregate, 
> they�re still younger than I am.�
>
> Buchanan, born in Edmonton, got the idea of facilitating online 
> payments when he heard his father complaining about having to 
> wire money to the United States to pay for his tuition.
>
> �I could see it was a consumer pain point,� he says. �Credit 
> cards had been around for a long time. Could they be a simpler 
> way to resolve this hassle?�
>
> The problem with credit cards is high transaction costs. 
> Retailers absorb most of these costs, which are a big irritant to 
> the industry.
>
> Most universities don�t take credit card payments in order to 
> keep costs low. Neither do most government departments.
>
> Plastiq was designed to get around the problem. Customers foot 
> the bill by agreeing to a two per cent surcharge. Merchants pay 
> nothing.
>
> Let�s go back to David Ades, who wants to get 10,000 Aeroplan 
> miles for his payment to the Canada Revenue Agency.
>
> �If I buy 10,000 miles directly from Aeroplan, I pay 3 cents 
> apiece or $300,� he says. �If I use Plastiq, I�m paying two per 
> cent or $200.
>
> �I get convenience, points and extra time to pay off the debt. I�m 
> extending my deadline by 21 days by using the float that credit 
> cards offer.�
>
> That�s a great strategy if you have enough cash to pay in full 
> when your credit card bill arrives in May. But if you have to 
> make partial payments, you�re better off avoiding credit cards.
>
> The annual interest rate for standard credit cards goes from 18 
> to 21 per cent. CIBC Aerogold�s rate is 19.99 per cent for 
> purchases and 21.99 per cent for cash advances, balance transfers 
> and convenience cheques.
>
> You�ll save money using a line of credit to pay your tax bill 
> gradually, especially if you have secured line with a rate of 
> under 10 per cent.
>
> Even better, the Canada Revenue Agency charges only five per cent 
> interest if you need time to pay your taxes owing. It�s one of 
> the best deals around.
>
> Still, Plastiq offers convenience for those who want to use their 
> preferred credit cards to pay their tax bills. You don�t have to 
> register online or carry another card in your wallet.
> �In my case, I�m paying $10,000 to the CRA and I�m billed $200 
> extra on the card I�m using. It�s two separate transactions,� 
> says Ades.
>
> Plastiq has raised $8.25 million from venture capital firms in 
> two rounds of financing. Its goal is to bring credit cards into 
> markets where they haven�t been accepted before.
>
> As well as education and income taxes � H& R Block Canada 
> announced a marketing deal with Plastiq last month � the company 
> plans to get into apartment rentals by working with large 
> property management firms.
>
> �We tried to develop a product that was very simple. All payments 
> happen securely at Plastiq.com,� says Buchanan.
>
> As for Ades, he likes working with a team of young people the 
> same age as his children.
> �Half of them show up in hoodies and half in suits. It�s a real 
> mix,� he says.
>
> Ellen Roseman writes about personal finance and consumer issues. 
> You can reach her at eroseman@thestar.ca or www.ellenroseman.com
>
> ----------------------------------------------------------- 
> Miss a Tax Tale Miss a lot!
> Visit the CRA SOTW Library at 
> http://canada.revenue.agency.angelfire.com
> ------------------------------------------------------------ 
> Alan Baggett � Tax Collector�s Bible - 
> http://taxcollectorsbible.com/ 

Sharx35 wrote:
> For David Ades, yes, his plan is perfect. For HIM. However, in my
> case, Hell will freeze over before I pay ANYONE, ANYTHING to use my
> credit card to pay ANY kind of bill. Period. End of story.

It's a brilliant business plan, not quite as good as Donate Now which 
handles charitable donations via credit cards, taking 3.2% off the top AND 
are a registered charity themselves so tax free revenue.  Last year they did 
$200 million in donations.

Now thats a business plan.

-- 
PV

I like to tell people I have the heart of a small boy. Then I say it's
in a jar on my desk." - Stephen King

On 07/05/2013 2:19 PM, Sharx35 wrote:
> For David Ades, yes, his plan is perfect. For HIM. However, in my case,
> Hell will freeze over before I pay ANYONE, ANYTHING to use my credit
> card to pay ANY kind of bill. Period. End of story.

Agreed.  Having to us Plastiq and not pay direct sure sounds like 
another corrupt scam preying on the stupid.

Plastiq probably wants a hidden fee or some BS commitment that is stupid.

If you could pay your taxes direct on the credit card, it would be good. 
  I could pay Ottawa $10,000 for taxes and get $100 back as my card pays 
me to use it.

But I suspect Plastiq has a gimmick....and found it, turns out they 
charge a members fee, carrying charges and 2% for the transactions.  A 
suckers play for chronic debtors.


-- 
Liberal-socialism is a great idea so long as the credit is good and 
other people pay for it.  When the credit runs out and those that pay 
for it leave, they can all share having nothing but debt and discontentment.

On 08/05/2013 10:29 PM, PV wrote:
> Sharx35 wrote:
>> For David Ades, yes, his plan is perfect. For HIM. However, in my
>> case, Hell will freeze over before I pay ANYONE, ANYTHING to use my
>> credit card to pay ANY kind of bill. Period. End of story.
>
> It's a brilliant business plan, not quite as good as Donate Now which
> handles charitable donations via credit cards, taking 3.2% off the top AND
> are a registered charity themselves so tax free revenue.  Last year they did
> $200 million in donations.
>
> Now thats a business plan.

Plastiq is a scam.  Just another source of high priced credit.

Why not do a check or direct transfer to the charitable organization and 
let them get 100% of the value to them and no fee to me?

My monthly balance assures I don't get bank fees for transfers and 
checks, so why pay this Plastiq middle man anything?

Anyone doing minimally sound economics management of their personal 
lives would never have any use for this organization.
-- 
Liberal-socialism is a great idea so long as the credit is good and 
other people pay for it.  When the credit runs out and those that pay 
for it leave, they can all share having nothing but debt and discontentment.