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Valued Contributor
clocktick
Posts: 1,603
Registered: ‎12-07-2008
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Paying property taxes on credit card (Amex)

Hello all, happy new year!

 

I've read certain things can trigger a FR from Amex.  I found out today I can pay my property taxes with a credit card and would, preferably, like to use my Amex.  Has this personally happened to anyone or is it purely speculation?  Why would they, or any other credit card company, care if you pay your taxes with their card?

 

Thank you. 

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




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Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
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Re: Paying property taxes on credit card (Amex)

I don't think this in of it's own will trigger an FR, unless the charge is one a long serious of events that suggests you may be levered beyond your ability to pay.  Even then, I'd still say it's ok.

 

We used our business cards to pay our quarterly taxes and office leases, and have never had issues.  I've also used my persoal Amex to pay property taxes to meet a spend threshold.

 

I think you're fine and shouldn't worry about an FR.

Valued Contributor
clocktick
Posts: 1,603
Registered: ‎12-07-2008
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Re: Paying property taxes on credit card (Amex)

That's what I'm thinking.  I mean it's not as if I'm going to let a balance sit and take my sweet time paying it off.  It'll get paid off within a month.  I wish I could charge these taxes on a card that earns me more than a measly 1%!

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




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Frequent Contributor
dookdig
Posts: 332
Registered: ‎04-08-2011
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Re: Paying property taxes on credit card (Amex)

New knowledge for me. I thought I could only pay taxes with mastercard or visa.

Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
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Re: Paying property taxes on credit card (Amex)

Well, look on the bright side, that seems generous when compared to Discover's whopping 0.25% for the first $3,000?  LOL

Valued Contributor
clocktick
Posts: 1,603
Registered: ‎12-07-2008
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Re: Paying property taxes on credit card (Amex)

[ Edited ]

dookdig wrote:

New knowledge for me. I thought I could only pay taxes with mastercard or visa.


This may be true!  All I did was read the slip of paper that came with my taxes.  I have not gone online yet to see exactly which cards they'll accept.  I guess I'm just so used to paying everything with my Amex.  I'll report back although my question still stands with other cards - why would they care?

11/30/08 TU 648 EX 672 EQ 656 SEPT 2014 TU 787 EX 789 EQ ???
Amex BCP $24.1K/Clear $8.5- Sallie Mae $27.5 -Cap One QS $7.5 - Chase Freedom $7.5/United $5k/CSP $20k/Ink- Citi DP $9.5/Dividend $13k/HHHx2 $15k/16.4/Reserve $4.5k Best Buy $1940 HD $1701- Discover IT $15k - Elan $8k GEMB Lowes $20k - Macy's $2k - Kohl's $800




Starting Score: 648
Current Score: 736
Goal Score: 765


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Moderator Emeritus
tinuviel
Posts: 4,875
Registered: ‎11-02-2010
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Re: Paying property taxes on credit card (Amex)

I'm wondering the same thing, myself, as I have property taxes coming due. I'd LOVE to earn the rewards points, as opposed to sending in a check which gets me nothing, but I don't want to trigger anything in Amex's system. This is the only card in my wallet that leaves me wondering where it's ok to spend. In my case, I have a charge card with Amex; I have to pay it in full every month. If I do so, wouldn't they recognize that I'm paying with their card for a) the convenience of paying online vs. mailing in a check and b) earning rewards? If I turn around and pay the statement in full after it cuts, doesn't that demonstrate that I had the money available to pay my taxes and wasn't living off my plastic? Given the benefits of using these cards for convenience and rewards, I don't see why using them to pay taxes should trigger any AA. But, I'd really be interested in hearing about others' experiences.


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
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Moderator
pizzadude
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Paying property taxes on credit card (Amex)

[ Edited ]

clocktick wrote:

Hello all, happy new year!

 

I've read certain things can trigger a FR from Amex.  I found out today I can pay my property taxes with a credit card and would, preferably, like to use my Amex.  Has this personally happened to anyone or is it purely speculation?  Why would they, or any other credit card company, care if you pay your taxes with their card?

 

Thank you. 


 

Most of the "certain things" involve behaviour far outside the norm of typical card usage.   Paying taxes is a normal payment that shouldn't raise anyone's attention.

 

Non-typical behaviour might include ~ Buying large amounts of US Mint currency to attempt to get around cash-advance fees, or buying large amounts of gift cards and returning them for cash etc.....these are the types of things that would get someone's attention.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Moderator Emeritus
tinuviel
Posts: 4,875
Registered: ‎11-02-2010
0

Re: Paying property taxes on credit card (Amex)

I just checked... I can pay my local property taxes with Amex. But, the "convenience fee" would come to double the value of the points that I would earn. Looks like I'll do an e-check instead. :smileysad:


Current Scores: EQ 775 (03/04/2014), EX 756 (03/01/2014), TU 760 (03/01/2014)
Ruby Spade Garden Club Member - Last App: 03/04/2013 - No apps until 2014
Cards: Cap1 Venture 6.4k, Cap1 Quicksilver MC 1.75k, BankAmericard 1-2-3 Visa Signature - UCF Alumni Association 5k, Discover 7k, Citi Diamond Preferred MC 10.35k, Wells Fargo Rewards Visa 7k, Chase Freedom 5k, Chase Ink 7.5k, Amex Green NPSL, Dillard's Amex 7.5k, JC Penney 7.5k, Kay Jeweler's 5.1k
Senior Contributor
Open123
Posts: 4,220
Registered: ‎02-23-2011
0

Re: Paying property taxes on credit card (Amex)

[ Edited ]

Paying taxes--unless it's something like $100k--isn't going to cause any kind of issue especially on a charge when it's due at the end of the month.  However, you need to consider the 2.5% surchage when paying taxes with an Amex--I believe it's less for Discover, Mastercard, and Visa.

 

In my view, it's only worth it if the taxes lifts you beyond a threshold for a big bonus.  For instance, if you need to reach $50k spending for a 30k MR Points bonus, then paying the final 5K in taxes even with a 2.5% fee is well worth it. 

 

On the other hand, I wouldn't pay the fee unless my rewards will supercede whatever my fees happen to be.


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