What to do.... would chase frown on this?.

[Creditplz]

Hey everybody! I have came to a dilemma, one of my vendors just recently quit taking CC's and does cash or check only.

I've already met the spending bonus on the Biz Marriott but I have a order which will total about $1850 with delivery (drywall, plaster, nails & more), I have the cash to pay well in cash.. but I wanted to earn points, he told me if I pay on PayPal he'd eat the fee this one time.

With the story's of Chase currently I don't want to get hit by a suspected MS, what would MyFICO members do if put in my shoes?.

[Anonymous]

Creditplz -

I would pay him through Plastiq. The fee for PayPal using a credit card is almost the same, I can give you a referral link if you PM me you'll get no fees for the first $500 of a payment, then 2.5% fee for the other $1,350. I think it ends up being less than PayPal would charge.

I wouldn't put that large of a payment through PayPal, especially since Chase will see the fee charged knowing it translated to cash, not sure if that's considered MS or not exactly I think it's a gray area, but Plastiq has been legitimized which is why I recommend it.

Just my two cents

[-Cal-]

I personally would proceed with the transaction with Paypal. You could be buying goods, paying for services, etc. Paypal is too broad of a service for them to just make an assumption that it's anything sketchy.

If it was a service like Venmo, I'd be cautious. 

[Anonymous]

Cal - For me PayPal was really expensive and not exactly legitimate to make a large payment, I'm not saying you'll get shut down for it but still. Would you contend that it's better than Plastiq for paying legitimate bills?

[-Cal-]

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@Anonymous wrote:
Cal - For me PayPal was really expensive and not exactly legitimate to make a large payment, I'm not saying you'll get shut down for it but still. Would you contend that it's better than Plastiq for paying legitimate bills?

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I would say expensive is subjective here. The OP's bill is $1850 which would generate $55.50 in fees. In this case, their vendor agreed to eat the fees so no cost to the OP. 

To answer your question, Plastiq is cheaper (- 0.4% - 30¢), but I don't know if that would raise flags on a business account. 

Looks like they have an offering specifically for businesses.

[Anonymous]

Yes they do work for businesses as well. You earn points for spending money and as a new member OP would receive a discount on the fees charged.

It just seems more legitimate than working in the gray with PayPal.

[-Cal-]

In his scenario, I'd still go with PayPal, especially since the vendor are agreed to eat the fees. Introducing another payment option may complicate his arrangemnent.

I personally wouldn't use Plastiq to pay my vendors, I'd rather not earn points than pay the fees. But my expenses are probably different than others.

[Anonymous]

But say that you were in the OP's situation where your contractors wouldn't accept credit...obviously we would all rather avoid any fees, but if they need a check then this would be the best way.

Plastiq sends a check the same day, I don't know one vendor in the world who would rather accept PayPal than an actual Check....

[-Cal-]

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@Creditplz wrote:
Hey everybody! I have came to a dilemma, one of my vendors just recently quit taking CC's and does cash or check only.

I've already met the spending bonus on the Biz Marriott but I have a order which will total about $1850 with delivery (drywall, plaster, nails & more), I have the cash to pay well in cash.. but I wanted to earn points, he told me if I pay on PayPal he'd eat the fee this one time.

With the story's of Chase currently I don't want to get hit by a suspected MS, what would MyFICO members do if put in my shoes?.

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My statements were based on the bolded/highlighted excerpt above. 

[Anonymous]

And you're assuming that this contractor would prefer PayPal over a check if offered? If you think that I've got a bridge to sell you