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Anyone Use Bill Matrix To Pay Your Power Bill ? Cashback Is Higher Than Their Fee

Saturday, June 25, 2011 - 3:45 PM
Ive never used such services before because there is a "fee".

However, I recently revisited the idea and it seems it MAY make sense.

I observed they charge a $3.60 fee to charge your bill to your credit or debitcard.

Typically, that $3.60 is more than my 1.5% cashback so Ive never done it.

However, I noticed that one can pay up to $600 which changes the dynamics.

If I pay $600 plus the $3.60, I get $9.05 cashback. Deduct the $3.60 and I gain $5.45 AFTERTAX for prepaying $489.

Thats 1.115%.

My regular bill is $111 this month and its likely I will spend the other $488 in the next 3-4 months.

So, 1.115% for overpaying for 3-4 months.

Beats any savings or money market account for sure.

The only thing I havent tried is if their system will let me overpay. It let me enter $600 but not more. However, I didnt go through with the transaction.

What do you think ?



 
3
RJMRJM72 posts since
Jan 21, 2011
Rep Points: 404
1. Sunday, June 26, 2011 - 10:19 AM
Yes, the Bill Matrix system will let you overpay. I've used it multiple times to prepay my power bill for several months in advance, one time as high as $800, and there were no problems whatsoever.
5
nancylonesnancylones2 posts since
Jan 16, 2010
Rep Points: 10
2. Sunday, June 26, 2011 - 1:24 PM
Thanks Nancycylones. I see no downside to doing it then.

Just wish my limit was $800.

Cant understand why they allow that. They clearly would be taking a loss with large payments.
1
RJMRJM72 posts since
Jan 21, 2011
Rep Points: 404
3. Monday, June 27, 2011 - 12:47 PM
I emailed bill matrix and they confirmed it.

Thank you so much for this information. Yes, BillMatrix can process payments in $600.00 increments to your Alabama Power account with a processing fee of $3.60 associated with each transaction.

I suspect the amount may differ for different companies as she asked which power company I used.

Im going to do this in a few days...my 1.5% cashback card requires the cash be in there first. Its really a debitcard but I get 1.5% when using it as a creditcard.

 
1
RJMRJM72 posts since
Jan 21, 2011
Rep Points: 404
4. Wednesday, June 29, 2011 - 3:42 PM
I paid $600 to my power company via Bill Matrix and it worked just like it was supposed to.

Cost me $3.60 and I get $9.05 cash back.

Made $5.45 for prepaying $488. (My bill was $112)

Payment was instantly posted.

I will be doing this every 3-4 months rather than billpaying every month.

But, I cant figure out how Bill Matrix makes money on such large charges.

If it costs them 2%, thats $12. They only get $3.60 from me.

Unless the power company gives them a 1-2% discount.
1
RJMRJM72 posts since
Jan 21, 2011
Rep Points: 404
5. Wednesday, October 19, 2011 - 11:31 PM
I guess Im going to do this again in a few weeks. If they let me.
1
RJMRJM72 posts since
Jan 21, 2011
Rep Points: 404
6. Thursday, October 11, 2012 - 1:30 AM
I have continued to do this. Last time with a 5% limited time cashback deal. Also did it with my sewer & water billl. Cant recall what the cost was but I paid about $250 extra, which should last nearly a year.

This month, BAC is offering 5000 bonus points, which I value at .008333 each for spending $500 by 12/31.

So $41.65 for spending $500. But nothing for spending $499.99 or less. Im using it for regular spending rather than my power bill though. Because I should spend $500 without using the power bill.

I hate that BAC points arent worth 1 full cent but they've been having good quarterly deals for the last year now.

 
2
RJMRJM72 posts since
Jan 21, 2011
Rep Points: 404
7. Monday, January 21, 2013 - 9:14 AM
So far I have done the $600 payment twice with my 1.5% cashback card and Im close to needing to prepay again.

I might as well get one of those Fidelity cards that pay 2% cashback on everything.

 

But, arent they limited to amex now ?

 

My regular 1.5% is an old paypal debit card that Im grandfathered in on. Thats my best everyday cashback and it requires that I have the cash in my paypal account in advance and use the card as if it was a credit card.
1
RJMRJM72 posts since
Jan 21, 2011
Rep Points: 404
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