MilesBuzz! - WARNING: Hidden 2-1/2% "Convenience Fee" for Charging Taxes

Hi Everyone -

Hope this is an appropriate topic for this forum. If not can someone please point to parameters for posting about FF mileage issues not directly related to air travel?

Anyway was about to pay my Federal Tax liability on my AMEX/Sky Miles Card in order to secure double miles when I almost inadvertently learned a 2-1/2% "convenience fee" would be tacked onto the charge.

As we approach tax day I thought I would pass along the info in the hope no one would be tricked into paying the fee!

Will try Raffy's linked Citicorp charge card/c2it option instead to earn the miles for free.

Good luck!

Just because you didn't know about does not mean it was
"hidden:"
Discussed:
http://www.flyertalk.com/forum/Forum1/HTML/006468.html
http://www.flyertalk.com/forum/Forum1/HTML/008309.html

And if you go to officialpayments.com and elect to pay $1000.00 in federal taxes, the next screen displays:
Payment Amount:
$1,000.00

Convenience Fee:
$24.90

Total Payment:
$1,024.90

So how is this hidden?

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by UpgradeMe:
And if you go to officialpayments.com and elect to pay $1000.00 in federal taxes, the next screen displays:
Payment Amount:
$1,000.00
Convenience Fee:
$24.90
Total Payment:
$1,024.90
So how is this hidden?
</font>

If you call up your credit card company to learn how to make such a charge you are referred to (800) 272-9829 where you receive an automated response which does NOT provide details on the fee at issue. In another menu you are referred to (877) 754-4413 to learn "more" about the "convenience fee" via another automated response. If you don't press the correct menu button initially, you never learn of the details.

Be that as it may the intent was merely to warn other FTers of what would have otherwise been a trap for at least one of us. Sorry I did know of the earlier posts on the subject.

It's about as well-hidden as those hundreds of smoldering Iraqi tanks.

That having been said, they certainly should make sure you know what you getting into. But I find it difficult to believe that the whole transaction could be completed without someone (or something) telling you about the fees.


[This message has been edited by JonNYC (edited 04-14-2003).]

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by UpgradeMe:


And if you go to officialpayments.com and elect to pay $1000.00 in federal taxes, the next screen displays:
Payment Amount:
$1,000.00

Convenience Fee:
$24.90

Total Payment:
$1,024.90
</font>

Since the SkyMiles Amex is giving double miles...

2000 miles for $25 bucks? That's .0125 cents per mile. Not bad!

I did mine w/ the Starwood Amex for the double points. I wouldn't do it without that enticement.

Last year was great -- any tax payment at all with the United Visa netted 5000 bonus miles. So I made a $5 payment by credit card and sent a check for the rest. Sweet!

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View from the Wing (http://www.webflyer.com/blog): A blog about Free Miles and Free Markets

The fee is also stated in print during the current television commercials running for Official Payments.

Not only in print... the guy says "sure, there's a convenience fee...". I think its a great business idea, these folks must be making a bundle.

<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by HeHateY:
Since the SkyMiles Amex is giving double miles...

2000 miles for $25 bucks? That's .0125 cents per mile. Not bad!</font>

It's actually 100 times more expensive than that: 1.25 cents/mile. http://www.flyertalk.com/forum/smile.gif

QL

The media ads I've seen and heard even mention the fee upfront. "All this for just a small convencience fee."

Didn't seem very hidden to me.

And no, I don't think it's worth it. Why pay for something that has absolutely no guaranteed future value?

I think that the convenience fee is worth it if you earn 2x *points with your Amex:
$4000 (max. for 2x *points) = 8000 *points for US$100 or so = 3 free nights at Sheraton Puerto Vallarta or Westin Sukhumvit Bangkok. Or 1/5 of a 5-night stay at the Westin St. John, USVI, or Westin Cayman Islands, each priced at about US$450 a night in high season.

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Play the travel game 3 vacations into the future!