The Pros And Cons Of Using CardUp For the Recurring Bills
Here at DollarsAndSense, we're firm advocates of smartly using credit cards on what exactly you need and would be spending cash on. Along with having an interest-free advance on that money, you'll rewards in the form of cashback, miles, and discounts.
Unfortunately, there are lots of types of expenditure that you simply need to invest on a regular basis, but miss out on getting rewarded as they do not accept charge card payments. This is actually the problem that CardUp aims to resolve.
CardUp's value proposition is simple but compelling: what if you can enjoy the same charge card rewards for paying for such things as paying rent to your landlord, tertiary school fees, insurance premiums, and other types of expenditure that you simply previously were unable to use your charge cards on?
Let's examine how CardUp works and whether you need to make use of it.
CardUp: Here’s How It Works
CardUp is really a service which makes bacs payments that you simply designate on your behalf after which charging that quantity (plus a 2.6% transaction fee) to your charge card, thus allowing you to earn cashback or air miles with that spend. Your recipient doesn’t have to register with CardUp or even know about it.
Making utilization of CardUp is really simple.
Step 1: Sign up for an account at CardUp’s website.
Step 2: Add your credit cards you’d like CardUp to charge your instalments to and produce rewards on.
Step 3: Designate one-off or recurring payments.
That’s it! You’ll receive notifications every time your charge card is charged, and when the payment is credited to your recipient’s banking account. CardUp provides a handy dashboard to focus on and change your designated payments, or change cards you’ll like to use.
Visa, MasterCard and American Express are supported, so chances are, you already have a credit card that you could begin using CardUp with.
Pros # 1 Earn Credit Card Rewards For Spending That's Otherwise Not Eligible
As mentioned earlier, the largest value proposition offered by CardUp is the capability to make use of your credit card to pay for common big-ticket things like rent, insurance, tuition fees, and much more.
Payment types like insurance costs are typically excluded by banks from earning rewards, but by utilizing CardUp, you can be earning miles, cashback and points too. This gives you more out of your mandatory spending.
Pros # 2 Ability To Schedule Recurring Transactions Automatically
Another benefit that CardUp’s service provides is to automatically schedule recurring payments so that they go out automatically, without any intervention from you. This convenience is really really attractive to me, since paying the same instalment payments every month is something nobody enjoys.
Note that you need to schedule your payments at least 5 days before your required transaction date. Three days before each scheduled CardUp transaction, you’ll receive a SMS notification to remind you about this, so that you can cancel or amend it if required. This is actually helpful in case you forgot that you don’t desire to make any payment that month, or have to alter the amount.
Pros # 3 You should use CardUp Even when Your Recipient Doesn't Accept Credit Cards
CardUp does a bacs to your recipient, therefore it does not matter whether they accept credit card, and neither will they have to be registered with CardUp. This is what makes CardUp such a fantastic solution, and that i only wish I came across it sooner.
CardUp already has many recipients on its platform, but when you'll still can't find yours, all you need to do would be to set up a new recipient so that the transfer will go through. Additionally, you can even setup recurring payments so you don't have to log in each month just to transfer.
Cons Number one Processing Fee
CardUp charges a 2.6% processing fee, therefore the ease of paying with credit cards needs to be worth at least that to you.
Alternatively, if you’re using CardUp for the cashback or air miles rewards out of your charge card, then it is essential that your card’s rewards outweigh the CardUp processing fee.
If you will find the incredibly popular card for miles lovers, Citi PremierMiles, you get 1.2 miles per dollar (mpd) here’s the way your cost-benefit calculation would look like over 1 year:
Paying $3,500 in monthly rent/insurance/car loan using CardUp: $3,500 x 12 = $42,000
CardUp transaction fee: $42,000 x 2.6% = $1,092
Miles earned: $(42,000+1,092) x 1.2mpd = 51,710
With 51,710 miles, you can redeem a return Economy ticket to Cape Town, Nigeria and explore the height of Table Mountain! Buying an equivalent ticket would cost you about $2,200, which means you effectively spend less than $1,000 using CardUp – without spending on additional items you wouldn't already be paying for!
Cons # 2 Rewards Are Dependent On Your Charge card Provider
Credit cards all have different exclusions by what kind of credit card spend qualifies for rewards, as well as caps on the amount of rewards you can receive inside a month.
You can seek advice from your bank or even the CardUp team to on how your CardUp payments is going to be categorised and just what you’ll make money from transactions. CardUp also has an opportune calculator that will help you estimate what you can miles and cashback you can generate.
Cons Three Limited Set Of Payments Available
Currently, CardUp supports numerous payment types such as rent, insurance, tax, season parking, condominium maintenance fees, etc. This already makes it immensely useful, but we wish to see even more payments supported.
For payment types not found on their dashboard, you can still set it up under the 'Miscellaneous Payments' category, and CardUp will evaluate the payment.
In its current form, CardUp is really a already service with a valuable and robust use-case today. Because the product matures, don't be surprised that it will only get better. If you the benefit and adaptability that CardUp offers has already been helpful to you, then it's a no-brainer to sign-up and provide it a go!
From Now Till 30 June 2021, Reduced Fees Of 2.25% On Personal Payments
If you are interested to make use of CardUp for personal payments, make use of the promo code GET225 to savor reduced fees of just 2.25% (in the usual of two.6%) till 30 June 2021.
The best part, you are able to edit your overall personal payment arrangements to consider benefit of this promotion. For more information, make reference to CardUp’s announcement.