Usually when you purchase things, the ideal thing to do is to use a credit card instead of spending cash. This way, you will be able to earn discounts, miles, and cashback in the form of rewards on top of your existing card benefits. However, there are different kinds of expenses that you incur on a regular basis, but not all merchants accept credit cards. In such cases, CardUp can prove to be your one-stop solution.
The value proposition of CardUp is straightforward, but cogent. It allows you to enjoy rewards for your expenses towards tertiary school fees, rent to landlords, taxes, and insurance premiums.
Let us understand how CardUp functions and whether it is truly a viable option for making these payments.
How CardUp Works
CardUp, an online payment platform, is a service that transfers designated funds from your bank account by charging it to your registered credit card. The service will also charge a transaction fee of 2.6% to the card. In return, you will either get cashback or miles on your spend. The recipient does not have to register for CardUp.
Using CardUp is simple.
Step 1: Sign up for a CardUp account on the official website.
Step 2: Link your credit cards you would like to pay with and earn rewards on.
Step 3: Choose between recurring and one-off payments.
That’s all, folks. You will get notifications each time you use your card to pay for your expenses and when the amount is credited to the recipient’s account. This online platform has a handy dashboard for you to view and change your payments or credit cards.
CardUp supports American Express, Mastercard, and Visa credit cards. So, chances are that you are likely to have one of these credit cards and can use this service immediately.
How Can I Benefit From Using CardUp?
Earn Reward Points for Payments Which are Otherwise Not Eligible
As discussed earlier, the best part about using CardUp is that you will earn air miles and cashback when you use your card to pay for tuition fees, insurance premiums, rent, and so on. Banks exclude such payments from earning rewards. But, CardUp gives you more on your recurring spending.
For instance, if you have an American Express Singapore Airlines KrisFlyer Credit Card and use it to pay around S$5,800 to your landlord, then your annual spend will be S$71,410, which includes your total annual rent (S$69,600) and the CardUp transaction fee of 2.6% (S$1,810). Hence, the total number of miles you will earn in a year is 78,550, which is enough to buy 2 business class flight tickets to Brunei, Malaysia, and Indonesia. Even with this, you will have 8,550 miles remaining.
Ability to Schedule Recurring Payments
The second benefit that this service offers is the freedom to schedule automatic payments for your recurring bills, with no intervention from your side. This is really convenient as you do not have to remember dates or miss payments to your bank, school, or landlord.
Please note that once you schedule a payment, CardUp will charge the amount along with the transaction fee to your credit card 5 working days prior to the due date. After the payment due date, you can log into your account and check the dashboard for the statement.
Not Mandatory for Recipient to Accept Credit Cards
The feature that makes CardUp a fantastic solution is that the recipient does not have to accept credit cards or register with this service in order to receive your payment. This online platform has several recipients on its portfolio. If you still cannot find yours, you have to set up a new recipient and upload the relevant documents for the bank transfer to go through. After successfully adding the receiver, set up automatic payments to avoid missing due dates.
What are the Limitations of Using CardUp for Recurring Payments?
Processing Fee on the Higher Side
This service charges a transaction fee of 2.6%. So, if you are using this platform to earn cashback or air miles, then it is essential that the rewards you earn should outweigh the processing fee. For this, you have to spend a particular amount to earn high rewards. CardUp offers 1.4 miles per dollar for each transaction. Hence, if you spend S$60,000 per year along with a fee of S$1,560 each year, then you will earn 86,000+ air miles, which you can redeem for a return business class ticket to selected destinations.
Rewards on Online Spends
Banks will have exclusions about the type of credit card online spend that qualifies for cashback or air miles. There will also be caps on the amount of cashback or the number of miles you will receive in a month. Check with the CardUp team to know how the payments will be categorised and what you will earn from these online transactions. They even have a calculator, which allows you to calculate the amount of rewards you can earn.
Limited Payments Available
Right now, CardUp lets you pay your rent, school fees, condo fees, tax, insurance premiums, and season parking. But, there will be more payments supported. If your payment type is not on their dashboard, please get in touch with CardUp and include an invoice. They will review the payment and get back to you.
CardUp is a very useful and valuable platform in Singapore. Use a credit card that offers high cash rebates or cashback on your online spends to earn rewards on the mundane expenses along with the existing card benefits. As this platform matures, it’ll only get better. So, if you found this article to be handy, go ahead and give CardUp a try.