$400k per month in credit card charges

Discussion in 'Newbies' started by jonwashburn, Jul 23, 2015.  |  Print Topic

  1. jonwashburn

    jonwashburn New Member

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    I have a business where I need to spend about $400k monthly on my credit card. What is the best way to maximize the points / cash back? For the last year or so I have been using a card that pays 1.25% cash rebate. Recently I just signed up for Amex Platinum and Chase Sapphire.

    I'd like to do some traveling.
     
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  2. cybaslacka

    cybaslacka Silver Member

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    that's easy. paypal buddy
     
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  3. cybaslacka

    cybaslacka Silver Member

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    or venmo or google wallet. just eat the 3% fee
     
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  4. satman40

    satman40 Gold Member

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    We spend 400k,,and use INK...when we can...but prefer the cash discount.:D
     
  5. traveltoomuch

    traveltoomuch Silver Member

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    What a great opportunity!

    What category is the spending in? If it is something that any card offers a bonus on, that might drive the choice. (e.g. telecom/internet services --> Ink, travel --> CSP; airfare --> Amex PRG). If the spending is not on travel/dining, Chase Sapphire is probably not a great choice for the spending. Amex Platinum is almost never the right choice for the spend - as an incremental improvement, you'd be better off with Amex Everyday Preferred and making some tiny purchases to get you up to the 30 transaction/month threshold for the 50% bonus. And there are probably much better options.

    And how much (premium cabin) travel can you stand to make? Even we assume you only get 1 mile/$, 400k miles per month will go a very, very long way, especially if you're willing to be diligent/flexible in your booking patterns and not just burn for "standard" or "rule-breaker" airline awards. Again, based on bonus categories, I would be tempted to build a "sufficient" hoard of miles/points, then switch back to cash. Keep in mind that mile and point programs can (and do) devalue; you don't want to be hoarding excessively.

    FIA card services offers a co-branded Fidelity Amex (three of them!) that returns 2%. Assuming you can get that card, that should probably be your baseline of value. If you can't get more than a 2% return elsewhere (e.g. 1 point/$, when you value each point at $.025), then just take the cash and spend or invest it as you like.
     
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  6. satman40

    satman40 Gold Member

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    At 400k, per month, our rate of spend is $3,600 per hour, so 30 transaction could be a waste of time for an employee making $300.00 an hour,

    There are always kick back from suppliers, rebates on ads from newspapers, trade show write offs,

    Let's be honest the only goal is to make a profit, and keep the books clean,

    Profit is the bottom line, and the business is always for sale, so stay away from all forms of mistrust,

    Bottom line you draw $7500.00 every 2 weeks go home tired, and happiest to be home and pat the dog on the head,

    As for the travel, most of the miles get given away, a for of Charity,

    My view from the cheap seat. :)
     
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  7. edekba

    edekba Gold Member

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    You might want to look at this post.
    http://frequentmiler.boardingarea.com/2012/12/10/best-big-spend-bonuses/

    But then again, at $400k/monthly you're looking at $4.8M yearly? Citi DoubleCash would theoretically put $96k a year back which is more than enough imo to go anywhere you want, earn points/miles for that; at least twice.

    Now ... at $400k monthly ... I sure hope you're paying that off weekly as I have no idea what credit card has a Limit that high unless its a corporate card linked to the business... or you're just very well off. Our company has a "theoretical" limit of $500k on our Amex but that's combined between a few individuals and linked to our company, not to anyone SSN. Since you stated you got the CSP and AMXPLT but you didn't specify if it was business/personal but either way that is connected to your SSN (to determine liability/credit line etc).
     
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  8. mikeef
    Original Member

    mikeef Silver Member

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    Welcome to MP!

    The answer, as always, is "it depends." There are a couple of things we need to know, such as what categories you are spending in. For cash back, the Discover It Miles card is giving back 3% for the first year. If you have >$100K with B of A, you become eligible for their top tier status, which gets you a 75% bonus on credit card rewards, which gets you 2.65% back on travel purchases. If you only want miles and don't want cash back, the right card may actually be a hotel card, SPG Amex, which converts at a rate of 20K points = 25K miles for many programs.

    Obviously, there are an infinite number of "if/then" statements. The more we know about what you want, the better!

    Mike
     
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  9. Kalboz
    Original Member

    Kalboz Gold Member

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    Get them both: AMEX SPG Business and Chase INK ;)

    Every other month you can convert SPG points to 500K airlines miles and go see the world in style. You can also enjoy the best SPG accommodations on points: http://pizzainmotion.boardingarea.c...nefit-gives-starwood-an-advantage-over-hyatt/

    Every other month you can also convert your Chase UR points to Hyatt points at the rate 1:1 and have the best accommodation and access to lounges around the world.
     
  10. satman40

    satman40 Gold Member

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    I often enjoy putting the 400k into prospective, most in that bracket do not care about Milage, and HR handles the travel accounts and goes for the discounts.

    I ran my business many years in Credit a Cards, and still do, my wife's side is not into and they think I am a little silly sometimes, but then I enjoy it,

    Once in a while someone will go for it, but they soon decide it is not worth it, but it has been for me, and still is...just like planting a garden, it is nice, to be first with the best tomatoes, and green beans...

    3A is a great ride..,on an International Flight.

    Amex Business Express is giving 5% back at office supply stores, 3% on you category of choice..Kalboz..
     
  11. traveltoomuch

    traveltoomuch Silver Member

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    We might be talking past each other. I'm assuming you're referring to my comment about Amex Everyday Preferred and the 30 transactions/month.

    Consider: without the 50% bonus, the OP would get 400k MR points per month. Not bad. Not bad at all. But with the bonus, he'd get 600k. How much are 200k MR points worth? To me, it would be worth buying my morning coffee with the card every day. Or ordering 30 cheap items off of Ebay.
     
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  12. satman40

    satman40 Gold Member

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    I understand, but that $300.00 an hour employee is generating $5100.00 in billable hour of income for the business.

    I love the miles game, but a P&L puts it in perspective.

    After a period of time most of us have more miles than we have time to use.

    Life is not fair, I spent most of my younger days working, now that I have time to travel, the bones are tired....and home just feels great...

    I encourage all to go for the miles...after the first million, the rest are easy...

    Enjoy the Saeco machine...
     
  13. traveltoomuch

    traveltoomuch Silver Member

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    I tend to forget about these threshold bonuses because I don't spend that much on cards. But since you do, there are some very tempting bonuses here.

    The Southwest companion pass and the BA 2-for-1 award cert would be valuable to me.

    Some people think HHonors diamond is much better than gold; it could be worthwhile to put some spend on an HHonors card for that.
     
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  14. satman40

    satman40 Gold Member

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    My wife and I rotate the CP, on WN, the BA has a fuel surcharge, we do not spend a great deal on the CC, and pay them off every month.,it is funny sometime when a Lowe's cashier would say your CC is declined, and we laugh and pull out another one,

    I have built houses with CC, and sold them before they were finished, we have also ran a business and sold the job before the CC bill hit the door. I am sure many here have done the same thing,

    I took all the credit I could get when I was younger, it was OPM, back then we had inflation working for us, today it is a different world, but it can still be done.
     
  15. MSPeconomist
    Original Member

    MSPeconomist Gold Member

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    OP might want to look at the Centurion card benefits and decide whether to routinely put enough spending on the AmEx card to get a Centurion invitation.
     

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