Choosing a credit card for paying tax and suppliers through B2Bpay

What is the best credit card for paying the ATO and suppliers?

Short answer: One that earns well on everyday purchases, has a points cap high enough for your bill volume, and offers up to 55 interest-free days. Through B2Bpay every payment is a purchase from B2Bpay, so a card's everyday rate is what counts, not its rate on government payments.

B2Bpay accepts Visa, Mastercard and American Express and does not recommend particular card products. Card products are issued by banks and card issuers under their own terms, and the right choice depends on your spend, your redemption goals and the annual fee you are willing to pay. Independent comparison sites publish current earn rates and fees.

What this guide does is tell you which features matter when a large share of your spend will go through a bill payment platform, so you can read a card's terms with the right questions in mind.

Do business credit cards earn points on government payments?

Paid directly, often not, or at a reduced rate. Many Visa and Mastercard rewards programs exclude government payments, and American Express cards commonly earn a reduced rate on direct ATO payments. The details are in each card's rewards terms.

Through B2Bpay the question largely disappears. Your card issuer sees a purchase from B2Bpay, not a payment to the ATO or a council, so the everyday earn rate applies. B2Bpay's help pages put it plainly: you earn full points on all billers including the ATO, government agencies, telcos, insurers and utilities.

So when comparing cards for use with B2Bpay, look at the everyday purchase rate and ignore the government payment rate. See earning full card points on ATO payments.

Five things to check in a card's terms

Read these before you commit, because they determine what a year of bills through B2Bpay will actually earn.

Also check whether the card excludes "payment services" or similar categories from earning. Most do not, but the terms are the issuer's to set, and B2Bpay cannot override them.

Amex vs Visa and Mastercard for business bills

Both work through B2Bpay. The practical differences are the platform fee and the card's own earn rate.

B2Bpay's fees ex GST are 1.10%, 2.10% and 2.50% for Visa and Mastercard on Essential, Earn Plus and Earn Max, and 2.10%, 3.40% and 3.85% for American Express. American Express cards often earn more points per dollar, which can offset the higher fee, and B2Bpay lets you use Amex with suppliers who do not accept it. See paying with Amex where Amex is not accepted.

On a $20,000 payment on Earn Max, Visa costs $500 and Amex $770 ex GST; both earn 20,000 B2B Points. Whether the extra $270 is worth it depends on how many more points the Amex earns at its everyday rate and how you value them. The points calculator lets you compare.

Some businesses hold both: an Amex for the earn rate on large payments and a Visa or Mastercard for lower fees and as a backup. B2Bpay lets you nominate a different card per biller.

Are there caps on points for tax payments?

Not from B2Bpay. B2B Points are earned at 1 per $2 or 1 per $1 on every eligible payment with no cap stated. Your card's own points may be capped by the issuer, per month or per year, and a single large BAS can use up a cap quickly.

If your card has a cap, there are two sensible responses. Spread payments across the cap period, which B2Bpay's scheduling makes easy. Or, once the cap is reached, keep paying through B2Bpay by bank account or PayTo on Earn Plus or Earn Max, which still earns B2B Points at a lower fee (1.00% or 1.87% ex GST for bank account).

Check the cap in your card's terms before planning a year of bills around it.

Can I use a personal credit card to pay business bills?

B2Bpay is for ABN-holding businesses paying business bills, and you register with your ABN. Whether you fund those payments with a business card or a personal card is a question for your card's terms and your accountant.

Some issuers prohibit business use on personal cards; others do not. Mixing business and personal spending also complicates your records. Many sole traders use a card in their own name for business purposes without issue, but read the terms, and consider a card held in the business's name for cleaner accounts.

Whatever card you use, B2Bpay's rules still apply: you cannot use a credit card through the platform to pay for finance or credit, to pay yourself or a related business entity, or for illegal activities.

How do I check whether my card earns points on B2Bpay?

Make a small payment and watch your card's points statement. Because the charge is a purchase from B2Bpay, almost all rewards cards earn at their everyday rate, but a test costs little and removes doubt.

Before that, read your card's rewards terms for any exclusions or caps. If you are unsure, ask the issuer directly whether purchases from a bill payment service earn points.

Also check how the payment is treated for a sign-up bonus. Issuers often exclude government payments from eligible spend; a B2Bpay payment is a purchase from B2Bpay, but each issuer sets its own rules, so confirm before relying on it. Once you have a card you are happy with, our guide to how B2Bpay works takes you through setup.