Author Topic: Paypal Bill Pay for credit card points on Utility Bills?  (Read 1215 times)

jnw

  • Handlebar Stache
  • *****
  • Posts: 2019
Paypal Bill Pay for credit card points on Utility Bills?
« on: February 11, 2023, 03:22:52 AM »
I just learned about Paypal Bill Pay.  From my understanding, after watching a youtube video, is that you can pay say your utility bills or property taxes via paypal, and paypal will use your designated credit card , free of charge to you.

How does this work?  Someone has to pay the credit card company for the transaction.  They always charge a 2-3% fee.

Seems impossible.

Right now I have to pay my electric, natural gas, water/trash bills via my checking account.  This amounts to about $300 per month.  Would be nice to get 1.5 to 2% credit card points paying these utility bills. 

Someone please enlighten me how this would work :)   It would also be handy when trying to meet a spend amount for a credit card sign up bonus.

My water/trash, electric and natural gas companies all charge something like 2% fee if I use a credit card directly, i.e. without the "magic" of paypal bill pay.
« Last Edit: February 11, 2023, 03:25:08 AM by JenniferW »

jnw

  • Handlebar Stache
  • *****
  • Posts: 2019
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #1 on: February 11, 2023, 06:24:35 AM »
I just setup bill pay for the following three utilities on Paypal.  I searched for the names of my local utility companies and they were all there.  I entered in all three of the account numbers.  My water/trash bill will come soon, and I look forward to trying it out.  Gonna pay with a credit card which gets me 1.5% cash back.

1. Natural Gas
2. Electricity
3. Water/Trash

NotJen

  • Handlebar Stache
  • *****
  • Posts: 1616
  • Location: USA
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #2 on: February 11, 2023, 07:36:10 AM »
Read about some of the issues people have been having with Bill Pay through Paypal on the Doctor of Credit website, so you can try to avoid them: https://www.doctorofcredit.com/paypal-bill-pay-conveniently-pay-bills-with-your-saved-cards/

I hadn't heard about this before, but I can't make use of it because I don't really have any bills right now.  Back when owned my home, I would pre-pay my utilities in $1000 chunks - they only charged a flat $2.50 credit card fee.  Helped me get a few credit card sign-up bonuses that way.

travel2020

  • Stubble
  • **
  • Posts: 166
  • Location: PNW
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #3 on: February 11, 2023, 11:49:13 AM »
You might want to check the utility company sites as many, at least in our area, now allow auto payment via credit card without fees. Only one of ours doesn’t allow auto payment via credit card but does accept one-time payments via credit card so I just pay manually every month.

Makes things much simpler as all our bills now get paid via credit card and I don’t have to worry about checking account balance due to monthly utility bills.

jnw

  • Handlebar Stache
  • *****
  • Posts: 2019
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #4 on: February 11, 2023, 12:00:19 PM »
You might want to check the utility company sites as many, at least in our area, now allow auto payment via credit card without fees. Only one of ours doesn’t allow auto payment via credit card but does accept one-time payments via credit card so I just pay manually every month.

Makes things much simpler as all our bills now get paid via credit card and I don’t have to worry about checking account balance due to monthly utility bills.

I'll check again, but last I checked about 3 years ago they all wanted like a 2% fee or so.

Cadman

  • Pencil Stache
  • ****
  • Posts: 524
  • Location: Midwest
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #5 on: February 11, 2023, 12:01:09 PM »
Just a heads-up, if you pay through PP with your Citi card this quarter, you'll get 5% cashback instead of 2%. Just search out and activate the offer.

jnw

  • Handlebar Stache
  • *****
  • Posts: 2019
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #6 on: February 11, 2023, 01:10:01 PM »
Just a heads-up, if you pay through PP with your Citi card this quarter, you'll get 5% cashback instead of 2%. Just search out and activate the offer.

Which Citi card are you referring to? I have the Citi Custom Cash and it applies 5% to the largest spend category. I just use it at ALDI only for about $250-300 per month there -- it won't work at Walmart.  I need to get the Chase Freedom Flex and perhaps this other Citi card you are referring to.  Chase Freedom flex also has a one quarter per year 5% paypal thing, as you probably already know.

Cadman

  • Pencil Stache
  • ****
  • Posts: 524
  • Location: Midwest
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #7 on: February 11, 2023, 01:38:00 PM »
Just a heads-up, if you pay through PP with your Citi card this quarter, you'll get 5% cashback instead of 2%. Just search out and activate the offer.

Which Citi card are you referring to? I have the Citi Custom Cash and it applies 5% to the largest spend category. I just use it at ALDI only for about $250-300 per month there -- it won't work at Walmart.  I need to get the Chase Freedom Flex and perhaps this other Citi card you are referring to.  Chase Freedom flex also has a one quarter per year 5% paypal thing, as you probably already know.

I linked my Double Cash, but it looks like it's not limited to any one particular Citi card. According to this link, it's a targeted offer, but links are out there.  https://frequentmiler.com/citi-offer-5-back-on-up-to-1500-in-paypal-purchases-targeted/

solon

  • Handlebar Stache
  • *****
  • Posts: 2359
  • Age: 1823
  • Location: OH
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #8 on: February 11, 2023, 08:02:58 PM »
So, is this for real??? I can use a credit card to pay companies that don't take credit cards, and there is no additional fee? Can I pay my mortgage this way?

jnw

  • Handlebar Stache
  • *****
  • Posts: 2019
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #9 on: February 12, 2023, 02:49:10 AM »
So, is this for real??? I can use a credit card to pay companies that don't take credit cards, and there is no additional fee? Can I pay my mortgage this way?

From what I've read you can't pay mortgages and credit cards this way.. But it appears Paypal will pay your utilities this way. I think perhaps Paypal eats the fees?  I don't see how this program can remain much longer.

Zamboni

  • Magnum Stache
  • ******
  • Posts: 3882
Re: Paypal Bill Pay for credit card points on Utility Bills?
« Reply #10 on: February 12, 2023, 04:58:22 AM »
Yes, I predict they will get a bunch of people used to doing it through Paypal, then they will add a fee, and most people will just stick with it.

It's like how some things you can only pay or buy online now, but you get charged a convenience fee even if you use ACH, and there's nothing you can do about it. It's more convenient for my son's landlord to do it that way, for example, so why is the tenant the one stuck paying the convenience fee if that's the only way he can pay? Shouldn't that be cited in the rent in the first place if it is mandatory?

 

Wow, a phone plan for fifteen bucks!