topic Re: How can gain cash back when merchant doesn't take credit cards? in Credit Cards

How can gain cash back when merchant doesn't take credit cards?

Peanutbutter — Thu, 21 Jul 2016 14:36:10 GMT

Hi Everyone,

Ok, I know the title sounds stupid but hear me out....

We have to do some construction work on our home. The contractor does not currently accept CC's but I would like to use my Citi Double Cash card since it the project will cost about 12k, I'd like to gain the 2%CB if I run it through the card. So, my question is, since the contractor doesn't accept CC's, is there a way that I'm missing to still gain the CB for the transaction... like a balance transfer etc? Ideally, I'd like to not accrue interest in all this either, we have the cash to pay it off also.

I just feel like I'm overlooking an option somehow.

Thank you!!

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 14:43:04 GMT

@Peanutbutter wrote:
Hi Everyone,

Ok, I know the title sounds stupid but hear me out....

We have to do some construction work on our home. The contractor does not currently accept CC's but I would like to use my Citi Double Cash card since it the project will cost about 12k, I'd like to gain the 2%CB if I run it through the card. So, my question is, since the contractor doesn't accept CC's, is there a way that I'm missing to still gain the CB for the transaction... like a balance transfer etc? Ideally, I'd like to not accrue interest in all this either, we have the cash to pay it off also.

I just feel like I'm overlooking an option somehow.

Thank you!!

Look into Plastiq. They will send a paper check to the recipient (no fees for the recipient, just cash like a normal check). However, it's more than likely the transaction fee they charge will offset any rewards you may gain from using it. It's a great way to meet minimum spend but not necessarily profitable for ongoing use.

Re: How can gain cash back when merchant doesn't take credit cards?

dragontears — Thu, 21 Jul 2016 14:47:15 GMT

@Peanutbutter wrote:
Hi Everyone,

Ok, I know the title sounds stupid but hear me out....

We have to do some construction work on our home. The contractor does not currently accept CC's but I would like to use my Citi Double Cash card since it the project will cost about 12k, I'd like to gain the 2%CB if I run it through the card. So, my question is, since the contractor doesn't accept CC's, is there a way that I'm missing to still gain the CB for the transaction... like a balance transfer etc? Ideally, I'd like to not accrue interest in all this either, we have the cash to pay it off also.

I just feel like I'm overlooking an option somehow.

Thank you!!

Could you buy some of the materials? as stated above there are some services that will take a CC and send a check but typically have fees greater than the cash back you would earn.

Also keep in mind pretty much all major credit cards exclude BT from recieving cash back.

Re: How can gain cash back when merchant doesn't take credit cards?

FroggieMom — Thu, 21 Jul 2016 15:40:29 GMT

See if they can send you some convenience checks to use for the payment to contractor. Bonus with that is, a lot of them come with a promo APR...sometimes 0%

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 17:25:52 GMT

I'm not sure balance transfers qualify for the 2% cashback on the Citi Double Cash anyway.

ETA: According to their website, no, balance transfers do not qualify.

Re: How can gain cash back when merchant doesn't take credit cards?

Pway — Thu, 21 Jul 2016 17:26:14 GMT

@Anonymous wrote:
I'm not sure balance transfers qualify for the 2% cashback on the Citi Double Cash anyway.

ETA: According to their website, no, balance transferes do not qualify.

Balance transfers does not qualify for cash back.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 17:36:16 GMT

Find another contractor who's up to par with the 21st century.

I'd tell him to get lost because he doesn't take credit cards. Many contractors will happily take plastic for your business. The guy probably doesn't want to pay taxes on top of the fees.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 17:41:20 GMT

^ What he said. I don't understand how there are still businesses that don't accept plastic. With options like Square and readers for your iPhone, it's so easy nowadays.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 18:28:18 GMT

@Anonymous wrote:
Find another contractor who's up to par with the 21st century.

I'd tell him to get lost because he doesn't take credit cards. Many contractors will happily take plastic for your business. The guy probably doesn't want to pay taxes on top of the fees.

I would find another contractor. You have some protection if you pay the contractor directly with a credit card. That's a lot of money to pay someone in cash.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 18:29:03 GMT

@Anonymous wrote:
^ What he said. I don't understand how there are still businesses that don't accept plastic. With options like Square and readers for your iPhone, it's so easy nowadays.

Well, as the post above said, probably trying to avoid taxes, which is a big motivation

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 19:10:26 GMT

My flooring contractor didn't like to take CC's either. Many of these guys are small business owners and the fees on a $10k or $25k swipe is a good ding to their profits for the job. It makes sense.

He eventually went ahead and took the CC for a 1% fee, I used a 2% card so netting 1% net was better than nothing. I also told him I needed to use a CC AFTER he had already bid on the job - again not really fair to a small business owner looking to make a certain margin after the bid process. My contractor had a legit business, was insured, certified, did a better job than the big huge companies. Around here many smaller independent contractors don't take CC's.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 19:12:17 GMT

And you should never pay for labor up front - that is usually a scam. As my contractor finished each week, I would write him a check for the work that was done. I did have to come up with the money for the supplies up front (hence the CC need at first). He got a better discount than I could have received going somewhere else and using my card.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 19:27:10 GMT

A business trying to avoid taxes is a business I would stay away from.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 19:43:12 GMT

If the contractor is accepting checks, I don't think he/she is trying to avoid taxes. I would still look for a different contractor, though.

Re: How can I gain cash back when merchant doesn't take credit cards?

Peanutbutter — Thu, 21 Jul 2016 21:02:02 GMT

Hi Everyone,

Sorry I couldn't respond earlier, work calls.

A lot of you raised the legitmate concerns that the contractor may be trying to evade paying taxes, does shoddy work etc. In regard to the scope of work (foundation repair/helical piles) and type of contractor (structural engineering), its not your typical drywall and paint stuff. NJ is chock-full of crappy contractors (we're still dealing with the one who originally caused the issue, different guy though) and in this niche aspect of residental construction, these guys are the good ones, they just happen to not take CC's. Also, no one is getting paid 12k upfront, its the cost of this portion of the project and purchasing materials seperately isn't an option in this type of work. They are custom manufactured materials unfortunately.

Thanks for confirming the no rewards on BT's, I had a feeling that was the case but confirmation is helpful.

Thanks everyone for the help!!

Re: How can I gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 21:21:10 GMT

@Peanutbutter wrote:
Hi Everyone,

Sorry I couldn't respond earlier, work calls.

A lot of you raised the legitmate concerns that the contractor may be trying to evade paying taxes, does shoddy work etc. In regard to the scope of work (foundation repair/helical piles) and type of contractor (structural engineering), its not your typical drywall and paint stuff. NJ is chock-full of crappy contractors (we're still dealing with the one who originally caused the issue, different guy though) and in this niche aspect of residental construction, these guys are the good ones, they just happen to not take CC's. Also, no one is getting paid 12k upfront, its the cost of this portion of the project and purchasing materials seperately isn't an option in this type of work. They are custom manufactured materials unfortunately.

Thanks for confirming the no rewards on BT's, I had a feeling that was the case but confirmation is helpful.

Thanks everyone for the help!!

You're welcome. However, you should ask that contractor how he'd feel if he brought a credit card to a store and intended to use it, but then they told him they don't accept credit cards. The contractor may open up their eyes a little and realize how ridiculously dumb it is to not take credit cards in 2016.

Re: How can I gain cash back when merchant doesn't take credit cards?

Peanutbutter — Thu, 21 Jul 2016 21:23:48 GMT

@ Mountain

It might be worth it to reach out and see if they'd be willing to figure something out. It just kills me to see that amount of money not receive a CB/Miles reward

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 21:25:59 GMT

Often people in a niche market can set whatever terms they want. They only have so much time or product, and if someone doesn't like their terms, another customer will come along who does. That's just how it goes in a seller's market.

Re: How can gain cash back when merchant doesn't take credit cards?

Peanutbutter — Thu, 21 Jul 2016 21:28:26 GMT

@ Daisy,

Yes, with this type of work that is essentially the case. Good for them, not so good for me. Hopefully they'll be amendable to CC usage this go around. Work has to be done either way, just wanted to squeak out some extra bang for my buck.

Re: How can gain cash back when merchant doesn't take credit cards?

Anonymous — Thu, 21 Jul 2016 21:29:45 GMT

@Anonymous wrote:
Often people in a niche market can set whatever terms they want. They only have so much time or product, and if someone doesn't like their terms, another customer will come along who does. That's just how it goes in a seller's market.

While you are indeed correct, it is not exactly a smart buyer's market out there.

You still have people willint to pay for repair work in CASH, and don't even request a reciept.

With cash, the contractor can claim they didn't get paid. There's also no disputing the cost of services when work wasn't done correctly.

Sure you can try to take the contractor to court if they didn't do the work correctly, but then again "they didn't get paid anyways." Right?