Conscious about Getting More Rewards from Tax? Now you can Pay by Credit Card
When you think about taxes and credit cards such the ones as described on Credit Walk it is not likely that you think these two have much of a relationship. However, in recent months these two types of payments have actually joined forces to assist Canadian consumers manage their financial responsibilities with greater ease.
Unlike tax payers in the United States, Canadians have not had the same opportunity to use a credit card to make their annual tax payments. As of March 2013, however Canadians can now take advantage of this payment method. The Canadian Revenue Agency (CRA) is now recognizing the platform offered by Plastiq Inc. out of Boston, Massachusetts as a viable tax payment method.
Plastiq Inc., functions as an online payment platform that allows Canadians to charge their income tax amounts to their credit card. This is a beneficial alternative to paying with a cheque, cash advance, or a debit card. When looking to pay your taxes for the next tax season, you can consider this option.
Partnering with many leading financial institutions, such as American Express, MasterCards Worldwide, and Visa, Plastiq not only enables all Canadians the choice of making CRA tax payments by credit card a reliable option, but also opens up many more opportunities for payments to business merchants and organizations who have not previously accepted large credit card purchases. This is typically due to the amount of fees and interest percentages they are charged during these transactions.
When making a payment via this online platform, users are required to pay a credit card fee of 2%. Since you are not paying Revenue Canada directly when making your tax payment and are instead paying through a third party, Plastiq charges this amount for their services.
While these fees may be a turnoff for many Canadian taxpayers, it is important to keep in mind that these fees are in line with what other providers would charge. If for example, you were going to need a cash advance from your credit card to help pay your taxes, then you could be subjected to an annual percentage rate fee, perhaps as high as 21.5% (or higher).
While some individuals may feel that with this new process, there is a higher risk for consumer debt, as with all credit card payments, if you are committed to managing your finances responsibly, this approach can be highly effective. Make sure you look over the best credit cards available to Canadians.
This new payment method not only offers a reasonable rate, it also offers Canadians with a level of convenience they have not felt before when paying their taxes. When paying your taxes with your credit card of choice, you will pay from the Plastiq’s online platform, which is easily accessible from any device that has internet access. This is a very favourable reality, as it allows you to pay your taxes from virtually anywhere. The company will process all of the transactions between your credit card company and the recipient of your payment and this can alleviate not only the stress associated with this action, but also the amount of time it has perhaps taken you to make these payments in past years.
Resembling the PayPal platform, when making credit card payments through Plastiq Inc., you will be required to sign up for a personal account. Once you have completed these steps, you can search for your payment recipient, such as the Canadian Revenue Agency.
Other benefits of making this payment choice, includes the the opportunity you have to use your credit card to pay for other expenses, such as utility payments as well as when you have to pay tuition fees for yourself or your children.
For example, the process of paying tuition bills has essentially been made easier because, payment for many private school fees and many Canadian Universities did not previously accepted tuition payments via credit cards. However, now they do allow for this to take place through the Plastiq platform. Specifically, in Edmonton, The University of Alberta as well as Mount Royal University, located in Calgary are partnered with Plastiq.
Many credit cards offer loyalty programs which provide card users with the opportunity to experience great benefits and rewards when they use their cards for a variety of purchases. Whether you are using your card for business or personal expenses, the potential to take advantage of high gains and rewards can be very appealing.
When using your credit card to pay your taxes, if you are using a rewards card you can earn points with almost every dollar you spend. Ultimately, the more you spend, the more points you earn. Each card comes with its own unique program details, and these features will vary. On a whole, you can earn points towards many products and services, some of which commonly include, food, gas, and other merchandise. Other benefits of these cards allow for travel-related rewards and perks that can be very useful whether you are traveling for business or pleasure.
As a taxpayer, it is a good idea to be conscious about getting more rewards from tax - now that you can pay by credit card and the Plastiq payment platform empowers you to get the most out of rewards credit card programs. This again, works more effectively if you are able to keep up with your credit card payments and you won’t experience high interest charges each month that can weigh down your finances.
Additionally, there are special incentive offers through Plastiq Inc. The company’s most recent incentive is a sweepstakes program that is offered to all eligible Canadians (Quebec is not a participating province) and by entering you can win up to $5,000. You may want to keep your eyes open for deals like this that can help you with your tax payments. Looking at the official rules in more detail is advised.
If you are deciding whether this is the right choice for you, when you look to make your next tax payment, ask yourself - are you conscious about getting more rewards from tax? Now that you can pay by credit card you are able to experience a safe, secure, and convenient process that also allows you to maximize your financial gain.
