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

RJM
RJM   |     |   106 posts since 2011

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 ?

 




nancylones
nancylones   |     |   2 posts since 2010
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.
RJM
RJM   |     |   106 posts since 2011
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.
RJM
RJM   |     |   106 posts since 2011
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.

 
RJM
RJM   |     |   106 posts since 2011
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.
RJM
RJM   |     |   106 posts since 2011
I guess Im going to do this again in a few weeks. If they let me.
RJM
RJM   |     |   106 posts since 2011
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.

 
RJM
RJM   |     |   106 posts since 2011
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.