B2Bpay platform fees, GST and tax deductions explained

How much does B2Bpay cost?

Short answer: A platform fee per payment, ex GST: Visa and Mastercard 1.10% (Essential), 2.10% (Earn Plus) or 2.50% (Earn Max); American Express 2.10%, 3.40% or 3.85%; bank account 0.50%, 1.00% or 1.87%; PayTo 0.60%, 1.10% or 1.97%. No joining fee, and no monthly fee is stated.

The three plans differ only in the B2B Points they earn. Essential earns none and has the lowest fees. Earn Plus earns 1 B2B Point per $2. Earn Max earns 1 B2B Point per $1. On every plan you keep your card's own reward points. You can change plan at any time.

American Express on Essential has tiered pricing for high volumes, falling to 1.90% above $1,000,000 a year. The team confirms enterprise pricing for larger businesses. The exact fee is displayed before you confirm each payment, so there are no surprises. See also what's included in your B2Bpay fees.

What is the fee for, and who pays it?

The fee is a platform fee charged by B2Bpay for the bill payment service. It covers accepting your card, verifying and paying the biller by bank transfer or BPAY, the reporting and accounting integrations, and the rewards program.

You, the payer, pay it. The supplier, landlord or the ATO receives the full amount of the bill and pays nothing. That is why B2Bpay works with any Australian biller without asking them to change anything.

The fee is for the service and applies whichever way you pay: card, bank account or PayTo. It is a fee for using B2Bpay, not a card fee added by the biller. If a biller would normally charge you extra for paying by card, that charge does not arise, because the biller is receiving a bank transfer.

The fee appears on your card statement as part of the single B2Bpay charge, and B2Bpay issues a tax statement for the fee that you download from the portal.

Is there GST on B2Bpay fees?

Yes. B2Bpay's fees are quoted ex GST and GST is added to the fee. A GST-registered business can generally claim the GST credit on the fee in the same way as on other business services, subject to the usual rules. Your tax statement from the B2Bpay portal shows the fee and the GST.

Note that GST applies to the fee, not to the underlying payment. If you pay a $10,000 supplier invoice, the supplier receives $10,000 and your card is charged $10,000 plus the fee plus GST on the fee. The tax treatment of the invoice itself is unchanged by paying it through B2Bpay.

If you connect Xero, MYOB or QuickBooks, the integration records the fee as an expense automatically through the B2Bpay Clearing Account, which makes claiming credits at BAS time straightforward. See paying bills from your accounting software.

Are the fees tax deductible?

Generally yes, when the underlying payment is a business expense or a business tax liability. B2Bpay describes its fee as a tax-deductible platform fee and provides a tax statement for it. As with any deduction, confirm your position with your accountant, who knows your structure and circumstances.

Deductibility changes the effective cost. A fee of 1.10% before tax costs a company less after the deduction is taken into account, and the same logic applies to the higher Earn Plus and Earn Max fees. The exact after-tax figure depends on your tax rate, so we do not quote one here; your accountant can.

The points you earn are a separate question. Whether reward points earned on business spending have tax consequences depends on your circumstances, and B2Bpay does not give tax advice. Ask your accountant if your points balance is significant.

What is the cheapest way to pay the ATO or a supplier through B2Bpay?

By bank account on the Essential plan, at 0.50% ex GST, if you do not need the card's interest-free days or points. By card, the cheapest is Visa or Mastercard on Essential at 1.10% ex GST, which keeps your card's points but earns no B2B Points.

Cheapest is not always best value. On Earn Max the same $20,000 earns 20,000 B2B Points, convertible to 20,000 Qantas or Velocity Points, for $500 instead of $220. Whether the extra $280 is worth 20,000 points depends on how you redeem. The points calculator shows cost per point for your payment.

Is there a monthly, subscription or set-up fee?

No joining fee and no set-up fee. B2Bpay's published plan pages state there is no subscription and no hidden fees, only the platform fee on each payment. We do not state a monthly fee because there is none published.

That means a business that pays one BAS a quarter through B2Bpay pays four fees a year and nothing else. A business that puts every supplier invoice through pays the fee on each, and the Earn Plus or Earn Max plan may make sense because the points add up.

For high-volume businesses, the team confirms enterprise pricing. Call 1300 205 575 or use the contact form to discuss your volumes.

Do I get a tax invoice or statement for the fee?

Yes. B2Bpay issues a tax statement for its fees, which you download from the portal. It shows the fee and GST so you can record the expense and claim the GST credit.

Your card statement will show a single charge from B2Bpay for each payment, covering the bill amount and the fee. In your accounts you record two things: the bill itself (as whatever expense it is) and the B2Bpay fee (as a bank fee or similar). The Xero, MYOB and QuickBooks integrations do this split automatically through the B2Bpay Clearing Account.

Your Payment History in the portal also shows every payment with its processing and settlement dates, and can be exported if you keep records elsewhere.