Pay Mortgage With A Credit Card

Using Credit Cards to Save Money on Business Expenses

Cash Back Rewards

• Earn Cash Back: Credit cards like the Capital One Spark Card offer 2% unlimited cash back, while the American Express Plum Card offers 1.5% unlimited cash back.
• Offset Fees: Using a credit card with cash back can partially offset the 2.95% process fee, reducing the effective cost.

Tax Benefits

• Tax-Deductible Fees: The 2.95% process fee can be filed as a tax-deductible business expense, offering some financial relief.
• Additional Tax Breaks: Depending on the jurisdiction and tax codes, you may be eligible for additional tax breaks for using credit cards for business expenses.

Cash Flow Management

• Cash Float Period: Credit cards often provide a 30 to 45-day payment window, allowing businesses to manage their cash flow better.
• Utilize Funds: During this period, the funds can be invested in short-term opportunities or other revenue-generating activities.

Detailed Example: Capital One Spark Card

• Process Fee: 2.95%
• Cash Back: 2%
• Tax Break: 0.06%
• Final Fee: 0.35%
• Additional Benefit: 30-45 days of cash flow management and float revenue.

Floating Revenue from Bank

• Float Revenue - Cash Incentive Earnings: The funds in your bank account for 30 to 45 days could earn Cash incentive or be invested in short-term revenue-generating activities.
• Capital Utilization: The cash float period allows you to strategically utilize your capital for other pressing needs or investment opportunities.