If you are trying to say if you carry the balance, then I would agree but that card is paid off every month, it doesn't carry a balance so no interest so I don't see how it is a bad financial decision....
This is a @Zach@Granger question, I have not been involved for so long with that policy...
If you have $30-50k to pay off a credit card in one month without carrying a balance - more power to ya, but with the additional 2% surcharge - I suspect that would negate the bulk of any rewards earned as well.
Actually, I read the surcharge as the transaction will cost more but you’d just put a higher cost on your card and if you were paying off, just need more cash.
It wouldn't.
How does paying 2% more on a 50k purchase NOT wipe out the 2-3% rewards earned? It's simple math!
Its all about the deal you have with your card, as well as other things you can do with the business card. Financial matters is looking at the big picture, it is also about the taxe implications, both on income and what you can claim. So its not always simple math.
One of my cards is 2% cash back. If there's a 2% surcharge it's a wash. So it's not a benefit to use it but its not an "incredibly bad idea"
As long as you pay off the full amount the next month
Obviously. If you didn't, then yes, likely a bad idea. But a blanket "bad idea" it isn't.
That wasn't the original use case the OP presented - in your case yeah it could work and as long as someone isn't carrying a balance yeah it could work - but in the simplest way it was presented - 2% reward to pay a 2% surcharge doesn't work.
When I read it as you of course you would pay it off immediately. I didn't think they meant to carry the cost over months because he was talking about rewards. If not not, then I misinterpreted it (would put a shrug emoji, but don't know how?)
