Would you pay $1.90 for 240 MRs?
Jun 21, 2018, 7:01 pm
#1
Original Poster
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
Would you pay $1.90 for 240 MRs?
I'm curious....
I always pay my electric bill from my bank, because there's a fixed $1.90 fee for using credit. As I start to think about maximizing MRs, and my electric bill being $240 this month (yay Arizona summer + a Tesla to charge at night), would you pay the surcharge to earn the MRs? What's your break even point? Do you go by the flat > 1% rule? Do you use TPG's valuation of ~1.8 cents per MR?
I always pay my electric bill from my bank, because there's a fixed $1.90 fee for using credit. As I start to think about maximizing MRs, and my electric bill being $240 this month (yay Arizona summer + a Tesla to charge at night), would you pay the surcharge to earn the MRs? What's your break even point? Do you go by the flat > 1% rule? Do you use TPG's valuation of ~1.8 cents per MR?
Jun 21, 2018, 7:38 pm
#2
Join Date: Jan 2016
Location: LAX/JFK/SFO
Programs: Amex Plat, Hyatt, IHG cards
Posts: 120
I can get 2-3 cents per MR on plane tickets I'd be willing to buy with cash. If rewards are my main consideration in picking a card (as opposed to travel insurance, warranty, etc.) I plan using a 2 cents per MR value.
I also have a Schwab Platinum, so in a worst case scenario (award chart nerfs, I stop flying as much, I can't find award space) my MRs are worth 1.25 cents each.
240 MRs are worth $3 minimum to me, and probably $5 or $6. So I'd absolutely pay $1.90 for them. And I suppose you'd technically earn 242 MRs, as you'd earn rewards on the surcharge.
I also have a Schwab Platinum, so in a worst case scenario (award chart nerfs, I stop flying as much, I can't find award space) my MRs are worth 1.25 cents each.
240 MRs are worth $3 minimum to me, and probably $5 or $6. So I'd absolutely pay $1.90 for them. And I suppose you'd technically earn 242 MRs, as you'd earn rewards on the surcharge.
Jun 21, 2018, 7:57 pm
#4
Join Date: Aug 2007
Location: Truth or Consequences, NM
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Posts: 6,192
But yeah, I'd pay $1.90 for 240 MR points.
Jun 21, 2018, 9:38 pm
#5
Original Poster
Join Date: Nov 2013
Location: PHX, SEA
Programs: Avis President's Club, Global Entry, Hilton/Marriott Gold. No more DL/AA status.
Posts: 4,422
Last edited by Gig103; Jun 21, 2018 at 9:43 pm
Jun 21, 2018, 10:51 pm
#7
FlyerTalk Evangelist
Join Date: Aug 2001
Location: RSW
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Absent a promotion, I'd have to spend $240 to get 240 points on my card, so I'd leap at $1.90 instead.
Jun 21, 2018, 11:28 pm
#8
Join Date: Sep 2012
Location: Up In The Cloud
Programs: UA 1K MM; BA S, AA G; AS G; DL | SPG P50, M G, CC G, IHG P, HLT S | Hertz PC, Avis F
Posts: 682
Even better, pay $0 for 240 MR by using Arcadia Power https://www.arcadiapower.com/.
Jun 22, 2018, 1:16 am
#9
Join Date: May 2013
Posts: 378
Jun 22, 2018, 1:47 am
#10
Join Date: Apr 2014
Posts: 539
I'm curious....
I always pay my electric bill from my bank, because there's a fixed $1.90 fee for using credit. As I start to think about maximizing MRs, and my electric bill being $240 this month (yay Arizona summer + a Tesla to charge at night), would you pay the surcharge to earn the MRs? What's your break even point? Do you go by the flat > 1% rule? Do you use TPG's valuation of ~1.8 cents per MR?
I always pay my electric bill from my bank, because there's a fixed $1.90 fee for using credit. As I start to think about maximizing MRs, and my electric bill being $240 this month (yay Arizona summer + a Tesla to charge at night), would you pay the surcharge to earn the MRs? What's your break even point? Do you go by the flat > 1% rule? Do you use TPG's valuation of ~1.8 cents per MR?
Jun 22, 2018, 7:56 am
#11
Join Date: Jan 2017
Location: Paris, Geneva
Programs: Some...
Posts: 323
So he will get $240 worth of goods and services
He won't just pay $1.9 and get 240 MR
Jun 22, 2018, 4:47 pm
#12
Join Date: May 2013
Posts: 378
Jun 22, 2018, 4:56 pm
#13
Join Date: Aug 2007
Location: Truth or Consequences, NM
Programs: HH Diamond, Marriott Titanium, Hertz President's Circle, UA Silver, Mobile Passport Unobtanium
Posts: 6,192
Jun 24, 2018, 4:22 pm
#14
Join Date: Sep 2007
Posts: 998
Even better, pay $0 for 240 MR by using Arcadia Power https://www.arcadiapower.com/.
Jun 24, 2018, 7:35 pm
#15
FlyerTalk Evangelist
Join Date: Jan 2005
Location: home = LAX
Posts: 25,933
If you haven't yet, check to make sure the utility accepts Amex.
I have two utilities that accept credit card payments somehow (one directly, one through a separate site). One of them explains how to find the 4-digit security code on the front of an Amex, but then neither of them actually takes Amex, only Visa/MC. (I actually tried an Amex on the site that gave the 4-digit Amex security code explanation, but it said card type not accepted.)
Whether you'd earn Membership Rewards is not a consideration if the utility doesn't actually support paying with Amex.
I have two utilities that accept credit card payments somehow (one directly, one through a separate site). One of them explains how to find the 4-digit security code on the front of an Amex, but then neither of them actually takes Amex, only Visa/MC. (I actually tried an Amex on the site that gave the 4-digit Amex security code explanation, but it said card type not accepted.)
Whether you'd earn Membership Rewards is not a consideration if the utility doesn't actually support paying with Amex.