I briefly mentioned RadPad recently in a post, explaining how paying rent through RadPad is one way to unload extra Visa gift cards, since they don’t charge fees on debit card transactions. Meanwhile, credit card fees are hefty at 3.49%. RadPad just announced the reduction of the processing fee on MasterCard credit cards to 1.99%. That’s a fee of $19.90 for every $1,000. This is a much more expensive way to generate miles than to churn even the priciest Visa gift cards, which would come out to $11.90 per $1,000.
Using a credit card with RadPad is much more convenient, but is it worth the extra fees you’re paying? Personally, I can’t see myself using this service to generate frequent flyer miles. There are, however, a few instances where paying rent with a MasterCard credit card through RadPad makes sense:
1. Meeting Credit Card Spending Requirements. As I pointed out, paying rent with RadPad is super convenient – especially if you’re trying to meet credit card spending requirements. RadPad works similarly to WilliamPaid (now defunct): You make a payment to the service with your credit card and they in turn send a check to your landlord. Sure, you can make multiple trips to Safeway and Walmart in order to buy and liquidate $3,000 worth of Visa gift cards and money orders to meet the spending requirements on the Barclay Arrival Plus World Elite MasterCard, but some people prefer to pay $59.70 worth of RadPad processing fees for making rent payments directly with a credit card.
On the same note, being able to meet annual spending bonuses by paying a 1.99% premium may be acceptable to some folks out there. Prepaid cards are pretty much dead now, which means a lot of people are limited in the number of ways they can churn Visa gift cards. Using a MasterCard credit card for RadPad payments frees up spending power for other rewards credit cards.
2. No Manufactured Spending Opportunities. What about manufactured spending, you ask? I’ve been getting a lot of emails lately from readers who live in areas that aren’t MS-friendly. There are no places to buy PIN-enabled gift cards at reasonable rates or the area is lacking in places to buy money orders. For people in these types of situations, there’s still the option to buy PayPal My Cash Reload cards and load those in moderation, but that’s not a viable long-term strategy. Paying a 1.99% fee on rent payments made through RadPad might be the only alternative when manufactured spending opportunities are scarce and you need to earn a certain number of miles quickly.
3. It’s Cheaper Than Buying Miles. Buying airline miles or hotel points can at times be a bargain. Airline miles may go on sale for 1.8 cents each and hotel points could be had for under 0.6 cents. Some people use these sales to stock up on points for premium award redemptions. Others just top off their accounts. Outside of a promotion, buying points and miles can cost much more. If paying 1.99% in fees on rent payments via RadPad is cheaper than buying miles, you have no other options for meeting spending requirements, and you plan on redeeming points for premium awards that get you well over 1.99 cents worth of value per point, then this might be a good way to go.
Do you find it worthwhile to use a MasterCard credit card for rent payments via RadPad?
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