Now that some "smart" person has made a Tic Toc video about Beem It credit card BPay payments, they have closed the loophole.
Before you could make Bpay super contributions through Beem It using a credit card. No more!
Has anyone made super voluntary contributions with a credit card (for points)?
I have been told that the transaction could be considered a cash advance with associated cash advance fees and immediate interest charged. Anyone able to confirm?
Other suggestions?
Making Super Voluntary Contributions with Credit Card
EveryLastCent on 21/06/2023 - 17:21
Last edited 21/06/2023 - 17:22
Last edited 21/06/2023 - 17:22
Comments
Citibank Pay All.
Thanks for the suggestions.
I should have specified:
Contributions in the order of $50k.
So Sniip probably too low limits or way too many transactions required. Also I think there is a fee?
Also my credit card is a Coles Mastercard Platinum. Too late now to get another credit card with high limit.
credit card with high limit.
Load extra funds.. most cards earn points spending these funds.
Sniip probably too low limits
Most I've personally pushed through is 10k.. limitation is with the biller.
how the merchant puts in the transaction
High probability of a financial services MCC… test with a smaller amount it'll vary between card/biller combinations.
Just checked. Sniip has 1.5% fee!
Points are only worth 1% for the first $3k and 0.5% for the rest.
And even less when you look at what you actually get for those points when you redeem.
Sniip should use MCC 7399 (Business Services - Not Elsewhere Classified).
This is how Mastercard describes MCC 7399:
Merchants that provide business and trade services that typically are not considered professions. This MCC must be used only if another more specific MCC does not describe the merchant’s business. Examples of such business services include publishing companies, conference management companies, meeting planners, seminar companies, locksmiths, mail and packing services (including the sale of stamps), message and paging services, and waste management services.
To me, that MCC is not really an indication of a merchant related to financial services.
You are a legend mate.
Thank you!
As I thought a Super fund would not be a retail charge.That's Sniip, already know those transactions are not financial services. MCC reference was in regard to this shop front comment
Sniip does use MCC7399, they mention it in their FAQ "Does my credit card payment get treated as a 'Government payment'?" https://sniip.com/faq/
Really I would like to know if paying by credit card at the super fund shopfront (they have a CBA terminal) the transaction would be a cash transaction or a retail transaction.
The super fund employee did not know…
Coles Platinum Mastercard chat told me it depends how the merchant puts in the transaction…
Anyone has done it?Why don't you put in a small amount like $100 and see how it behaves.
Clearly too complicated and logical for this forum.
Yes. May as well not have forums to harness the knowledge of the group then.
Ozbargain should just remove forums then …
Yes I agree. However the shopfront offices are in the city involving 1 hour trip and parking. So I was hoping to get it all over and done in 1 trip without testing and going back before end of financial year.
Hence the question if someone had done it and knew already!
I would like to know if paying by credit card at the super fund shopfront (they have a CBA terminal) the transaction would be a cash transaction or a retail transaction.
Good luck finding out from here for a few reasons:
I had never heard of a super fund accepting contributions via debit/credit card until today (and the handful of super funds I have been with did not do that). I would have thought a more cost effective way of the super fund accepting money for contributions would have been via bank transfer or BPAY.
Even if you do find someone here who has done it in the past, their experiences may not be relevant to you. For example, late last year, I used a Westpac credit card on Giftz.com.au (an online retailer selling gift cards) and it was treated as a regular purchase. However, at the same time, CommBank treated such purchases as a cash-equivalent transaction and applied cash advance fees. The same transaction information was presented to both Westpac and CommBank, yet the two banks handled the merchant differently.
Even if you do find someone here who has done it in the past, the transaction information provided in the past by the super fund may be different to what is provided now. For example, the MCC could have changed in the meantime!
If I had to guess which MCC the super fund would use, it would be MCC 6051 (Quasi Cash - Merchant), because you are topping up an investment account. However, it is dangerous to try and guess, because you have to wonder how some payment providers assign MCCs to seemingly similar merchants for similar services. For example, when Hiver had a 5% cashback offer on selected MCCs (and OzBargainers banded together to try and work out which merchants and transaction types would and would not be eligible), mobile phone service providers could have wildly different MCCs:
- Boost Mobile was classified as Telecommunication Services.
- Coles Mobile was classified as Computer/Network Services.
- Catch Connect was classified as Computer Software Stores.
Another example: topping up different public transport cards can attract different MCCs.
- Topping up an Opal card (NSW) and myki card (VIC) online has MCC 4111 (Transportation - Suburban and Local Commuter Passenger, including Ferries).
- Topping up a MyWay card (ACT) has MCC 9399 (Government Services - Not Elsewhere Classified).
- Topping up a Greencard (TAS) has MCC 4789 (Transportation Services - Not Elsewhere Classified).
The super fund employee did not know…
I am not surprised by that.
A super fund employee would not need to know the MCC assigned by the company providing the payment facilities to their company in order to use an EFTPOS terminal (or to do their job). I have used EFTPOS terminals in the past in a retail setting and I had no clue what an MCC was! I did not need to know it in order to accept payments from customers.
Coles Platinum Mastercard chat told me it depends how the merchant puts in the transaction…
I am not surprised by that either.
Your credit card issuer would have no idea the kind of information your super fund would provide for a hypothetical transaction, because that is something the credit card issuer cannot cannot control. The employee you spoke to probably would also not know the intricacies that go into their company deciding whether a transaction is a "regular" transaction or a cash-equivalent transaction.
I have a tip for you though: if you happen to have a digital TCN gift card on a mobile wallet, you could use that first to see the MCC that is reported in the TCN app, because (at least on Android) the app will show the MCC for an approved or declined transaction (although it will sometimes take a few seconds for the transaction to show up in the app). That would give a hint as to whether the MCC is for something that is very likely to be treated as "cash-equivalent" (e.g. 6051) or something less likely to be treated as "cash-equivalent" (e.g. 7399), which should then indicate whether your credit card issuer is likely to treat any transactions paid with your credit card as "cash-equivalent".
Thank you for your extensive explanation!
Not many people know all the intricacies of the various payment systems.
You should charge as a consultant!!!
I tried today to do a $10 test payment but the employee today (much more knowledgeable) told me that credit card was not allowed. I replayed that yesterday I was told it was possible. So apparently it is possible on the machine (still not clear how it is classified though), but staff are told to only accept eftpos debit card transactions. Yesterday's staff member did not know that.
It would have been great to earn some points and also delay payment until balance due date on the credit card statement!
It would have worked with Beem It.
So unfortunately I will just do the easy way via BPay.
What is the benefit, please educate me
Concessional super contributions = tax deduction.
Can do easily via BPay = no points or delayed balance payment
Do it through credit card = earn points and pay for it up to 30 days later getting interest on the sum in the meantime.Is this because your able to access your super? I.e I assume you redraw it back?
Some do concessional contributions as a tax minimisation strategy. Pay 15% instead of max. The credit card points would just be an additional benefit.
@Soluble: Correct. And when you are over preservation age and you retire from your job you can access the funds tax free.
Not that good if you are 20 or 30 years old as the money is still yours, but not accessible for 40 or 30 years (preservation age may even be 70 by then… who knows).
super voluntary contributions with a credit card
How about using your credit card to put money in a Term Deposit ?
No tax deduction on Term Deposits!
But tax deduction for voluntary concessional super payment.
And if/when you are over 60 you can withdraw it all tax free when it suits you. And you only paid 15% tax on it in super versus your own tax rate (+2% medicare) if counted as income.
Good deal?
Besides, I don't think you can use a credit card to fund a term deposit…And if/when you are over 60 you can withdraw it all tax free when it suits you.
That is only correct if you have met a condition of release, e.g. retired.
Hmm can this be done with Coles Prepaid Mastercard too?
Just tried with my Westpac Mastercard via bPay and payment not permitted "You do not have an eligible account to make this transaction"
Someone suggested using credit card to contribute to MLC super and then roll it to your fund. Too much trouble so I didn't explore this.
Yakpay or Sniip to avoid cash advance charges.