Points maths: what a payment through B2Bpay actually earns

Is it worth paying a fee to earn points on business bills?

Short answer: Often yes for large payments that would otherwise earn nothing, such as BAS, rent and supplier invoices paid by bank transfer. Compare the fee (from 1.10% ex GST for Visa and Mastercard) against your card's points plus B2B Points, remember the fee is generally deductible, and add the value of up to 55 days interest-free.

The honest answer is that it depends on three things you control: which plan you choose, which card you use, and how you redeem points. A business that redeems Qantas Points for business class flights gets far more per point than one that redeems for gift cards. This guide gives you the numbers; you apply your own valuation.

Use the points calculator on the home page to run your own figures. Everything below uses B2Bpay's published fees ex GST.

What are B2B Points and how do they convert?

B2B Points are B2Bpay's own rewards currency, earned on top of your card's points on the Earn Plus plan (1 B2B Point per $2) and the Earn Max plan (1 B2B Point per $1). The Essential plan earns no B2B Points and has the lowest fees.

B2B Points credit to your B2Bpay account 5 days after payment and sit there until you convert them to the partner of your choice. Qantas Points require a Qantas Business Rewards membership; the join fee is waived via B2Bpay's link. More partners are being added. See how B2B Points work.

Fee and points by plan: a $20,000 BAS example

Here is the same $20,000 ATO payment on each plan, by card type. The B2B Points column is what B2Bpay adds; your card's own points come on top of every row.

Two things stand out. Earn Max has a lower cost per B2B Point than Earn Plus on every method, because the fee step is smaller than the points step. And bank account on Earn Max is the cheapest way to buy B2B Points, at the cost of giving up the card's interest-free days and the card's own points.

Is Earn Max worth the extra 0.40% over Earn Plus?

Usually, if you want B2B Points at all. The step from Earn Plus to Earn Max on Visa and Mastercard is 0.40% of the payment, and it doubles your B2B Points.

On $20,000 that extra 0.40% is $80, and it buys an extra 10,000 B2B Points. That is $8 per 1,000 points for the marginal step, against $42 per 1,000 for the Earn Plus points you were already buying. The same pattern holds for American Express (0.45% step, 3.40% to 3.85%) and bank account (0.87% step, 1.00% to 1.87%).

The reverse question is whether Earn Plus is worth it over Essential. That step costs 1.00% on Visa and Mastercard and earns 1 B2B Point per $2, or $20 per 1,000 points. Fine if you value a Qantas or Velocity Point at more than 2 cents; if not, Essential at 1.10% with your card's points only may suit you. You can change plan at any time.

Do I earn card points and B2B Points on the same payment?

Yes. Your card issuer treats the transaction as a purchase from B2Bpay and awards points under your card's program at its everyday rate. Separately, B2Bpay awards B2B Points on Earn Plus and Earn Max. Two layers, one payment.

This matters most for payments that earn reduced or no card points when paid directly, such as the ATO, councils, utilities and insurers. Through B2Bpay the card sees a purchase, so the first layer is restored, and the second layer is new. See full card points on ATO payments.

Your card's own earn rate and any caps are set by your issuer. A card earning 1 point per $1 on a $20,000 payment adds 20,000 card points to the 20,000 B2B Points on Earn Max, so the fee per 1,000 total points halves. Check your card's terms for caps on points per month or year. Our guide to choosing a card covers what to look for.

Can I earn points paying by bank account instead of card?

Yes. Paying by bank account through B2Bpay costs 0.50% ex GST on Essential (no points), 1.00% on Earn Plus (1 B2B Point per $2) or 1.87% on Earn Max (1 B2B Point per $1). PayTo is 0.60%, 1.10% or 1.97%.

This suits businesses that do not want to use a credit card at all, or that have hit a card's points cap, and still want Qantas or Velocity Points on tax and supplier payments. It is also how you can earn B2B Points on paying off your credit card balance.

What you give up is the card's own points and the interest-free days, so compare the whole package rather than the fee alone. For a $50,000 payment, bank account on Earn Max costs $935 ex GST and earns 50,000 B2B Points; Visa on Earn Max costs $1,250 and earns 50,000 B2B Points plus card points plus up to 55 days interest-free.

What a year of bills could earn

The points add up when you put regular outgoings through. Suppose a business pays $300,000 a year through B2Bpay by Visa on Earn Max: four BAS payments, monthly rent, supplier invoices and insurance.

• Fees: $7,500 ex GST, generally a business expense (confirm with your accountant).
• B2B Points: 300,000, convertible to 300,000 Qantas or Velocity Points, or 150,000 Avios, or 750,000 Luxury Escapes Société Points.
• Card points: whatever your card earns at its everyday rate on $300,000 of purchases, subject to its caps.
• Cash flow: each payment sits on the card for up to 55 days before the cash leaves.

The same business on Essential would pay $3,300 ex GST, earn only card points and keep the cash flow benefit. Both are reasonable choices; the difference is whether 300,000 airline points are worth $4,200 to you. Read the customer stories from The Shower Man Melbourne, WebEagles and Billy and Paula to see how other businesses decided.