payUSAtax.com
 

payUSAtax.com is a new IRS Authorized Payment Provider. Reading their website I had the impression we could pay the balance due on 2009 form 1040 with a Discover, Mastercard or VISA credit card, paying a Convenience Fee of 1.95%. This is lower than the fees charged by the other payment processors. Both Official Payments and Link2Gov charge 2.35%, reduced from 2.49% last year.

It's good that the IRS has added a third processor and that there is price competition. However, when I try to pay using a VISA credit card this message is displayed:

Visa credit cards are not accepted for the tax type selected. Please modify your payment method. If you would like to use your Visa credit card, please visit the “Pay by Credit Card” page at www.IRS.gov for alternate payment providers.

I have contacted payUSAtax for clarification, but given the wording of the message I don't think this is a programming or operator error.

Questions:

1. Has anyone actually used this site to pay 2009 balance due, and what type of card did it accept?

2. Can anyone see a disclosure on the site that should have told me that they do not accept VISA credit cards?

My search turned up only three previous mentions on Flyertalk:

http://www.flyertalk.com/forum/other...astercard.html

http://www.flyertalk.com/forum/miles...hip-cards.html

http://www.flyertalk.com/forum/other...es-points.html

I have used the site several times with no problem, using the Travelocity MC to pay my 944 employer taxes. I will be using it again to pay my Estimated tax in April, since with the lower rate and the 4% back in travel on the Gnome card I will come out ahead.
I have a refund coming, so no experience with the balance due portion.
JudyJFLA

I had the same issue with a Visa. Then I thought I would try out paying by phone. What do you know, it worked!
https://www.payusatax.com/PayByPhone.aspx

Thank you very much. The telephone system accepted my VISA payment :) .

Which cards are you guys using to pay off your taxes?

I used Chase Amazon.com VISA because we received a targetted offer of 15,000 bonus points for $10,000 spend in 90 days. These points are convertible to British Airways miles 1:1. That's 2.5 miles per dollar total.

^ Thanks. :D I have a 2% Visa rebate card; and this'll be great as one month negative interest loan. :D (1.95% - 2% = 0.05%)

Okay, blast me for not using a miles credit card.

- Pat

What about debit card?
 

What about debit card for a flat fee of 3.95$ at www.officialpayments.com?

PayUSAtax.com changes $3.89 ;) .

did you confirm the fee/rate for pay by phone?

Yes, it's an automated system which guides the user though every step, and confirms all amounts. The fee was 1.95%, same as online.

Can I use CO Biz Debit Card
 

So does this mean I can use my Continental Business Card to pay $10,000 in tax and then receive refund of $9,200 from IRS if I only owe $800 in tax for $3.89 and receive 10,000 miles?

Technically you may. Practically, only if you want to risk bringing yourself to the attention of the IRS and get flagged for an audit. I personally will not do it. ;)

1. Is your Continental Business Card a debit card?

2. It's not clear if payUSAtax accepts Mastercard brand debit cards.

The fee amount will be a flat rate of $3.89 for Visa debit or ATM/Debit transactions


https://www.payusatax.com/SelectService.aspx

Discussed here:


http://www.flyertalk.com/forum/other...es-points.html

Welcome to Flyertalk.

Based on your User ID and posting pattern I assume you are affiliated with payUSAtax.com. Am I mistaken?

You can send a check for free.
Remember most debit card purchases do not get points.
You have to use it as a pIN less transaction (like a credit card - for points!)

Thanks! Interesting insight there from the former revenue agent. My job is to represent clients on the other side vs IRS, so this is good to know.

In one recent case, the IRS came and audited a client two years in a row. The trigger? The client kept a lot of cash in the bank account. So you never know when they will come or what they will do.

Continental Business Debit MasterCard
 

If I use my Continental Business Debit Mastercard to pay my taxes using this site, will I receive the OnePass miles? When I go through the process, I am not prompted to enter my PIN online. Therefore, for purposes of determining whether I will receive points, is this debit payment truly considered a "cash" transaction?

Your thoughts are welcomed.

Similar question, anyone tried using Citibank's AA Debit card to pay your tax. No PIN is requested from payusatax.com and can we earn miles with Airlines Debit cards? payusatax.com only charges $3.89 for Debit card transaction.

It has been mentioned that the Official Payments Corp charges a flat fee of $3.95. However their website states,

The Convenience fee is 2.35% of the payment amount.
A minimum convenience fee of $3.95 applies.

To me, this means that the flat fee of $3.95 is good only for small amounts (an amount for which 2.35% of the payed amount is less than $3.95). For larger amounts, you do pay the full 2.35%??

See the Official Payments Fee Calculator here which shows that the debit card fee is $3.95 for any payment amount. Note also that Mastercard debit cards are not listed:

https://www.officialpayments.com/fed..._feec_body.jsp

IF anyone has success with debit card and points with payusatax, PM me.
There was already a long thread about cards and taxes, as not being eligible.

Link?

Interesting thread, glad I don't have a lot of cash in my bank account :)

o, I forgot to mention that was a corporate client, and it probably should not apply to individuals.

Chase CO MC - targeted double miles PLUS 5,000 bonus miles offer.

where did you find this offer for Chase continental MC? email to you?

I received a post card in the mail back in December. It is part of the Chase CO MC SMART and SMARTER promotion. I posted about it in this thread:

http://www.flyertalk.com/forum/conti...t-smarter.html

The new offer I just received is for 2,500 bonus miles per month for 20 or more monthly purchases.

Are there cards that gives you miles/points for non-PIN Debit transactions? I imagine not, hence eliminating benefit of paying taxes via debit pin transaction, but figured I would ask.

Thanks for reposting.

Hi Guys,

I had full intentions of paying with my Charles Schwab 2% card on payusatax to not have access to that 2% for the month while I pay it; however, I just spoke with customer service and they informed me the transaction would be deemed a cash advance transaction thus imposing additional fees to the transaction from FIA's end. So I started thinking does Citi have the same rules. I had to call Citi regarding a membership fee anyways which by the way was waived for $1000 in spend for 3 months. The call with Citi the csr had to ask her supervisor and they confirmed that tax payments are considered cash transactions since it is for a balance owed. So wow... that kinda changes everything as far as paying for points.

Once that was said and done I figured I'd give ole Amex Plat a call and see what they had to say about the charges and if they had any promos running (they didn't). They said since the card is a charge card and the bill is due at the end of each month then the transaction will not be considered a cash equiv transaction. It's unfortunate because I will have to pay a higher transaction rate for the Amex transaction at pay1040 or officialpayments; however, I will be receiving triple points after my first 3k charge and since I will not be charged any crazy cash equiv fees this seems like the more attractive option.

Anyone else want to chime in on these fees from Citi or FIA Schwab 2%?

BTW, Schwab did offer a 0% balance transfer up until November, but I have zero experience with balance transfers and she said it takes a few days for the money to hit your account.

WWaFTD?

I have never used payusataxes.com, but have been using officialpayment.com for several years to pay my estimated taxes. I have used Citi Amex and Amex Plat cards and never was charged a cash advance fee by these institutions. I only paid a convinience fee charged by officialpayments.com and even that always posted to my account as a purchase.

Yeah, I have never heard of the sort either in all the threads I've read regarding paying taxes with a cc (my first year). I am wondering with all this new credit card legislation if they are changing the way they do things regarding those borderline type transactions to generate additional fees. Either way I was 2 for 3 when calling csrs. If anyone else hears anything different then please keep us posted.

BTW, I was charged a cash equivalent fee for using my Charles Schwab 2% card on PAYPAL! They said all Paypal transactions are considered cash equivalent. Something about this just does not sound right... maybe they do not have a viable product anymore without 1 or 2 ridiculous fees?

+1. In prior years, I have used both Citi and Chase visa cards to pay taxes via officalpayments.com and there were no cash advance fees or interest from Chase or Citi. Such payments are treated as credit card charges (which makes sense as the 2%+ fee charged by the merchant is in turn needed to cover the bank processing fees).

Yeah I mentioned that to them as well. Calling back Schwab to see what a different csr has to say...

I am fairly certain that the CSR is misinformed. I recently did a payment with my travelocity card it went processed without any problems. I think there are lengthy discussions on SD and FW regarding using the Schwab card and using the float for 2 months.

Ya I think you are right.. I called back again and they didnt have a clue what they were talking about (purchase vs cash vs quasicash transactions). I think the first csr was trying to sign me up for a balance transfer which I have never done before. She even called me back to see if I was still interested!

I was also told by Schwab cc that it would be a cash advance.

Interesting.. Did they try to get you to do a balance transfer?

Anyone else already pay with Charles Schwab and have any results?