Now, PPC is easy. You slap it on an Amex Biz Gold, rack up points, and call it a win.
But inventory? Not so much. Most suppliers still want wire transfers or ACH. Not Visa. Not Amex. And definitely not an I.O.U.
So, how do we put inventory spend on a credit card?
You use a payment platform like Plastiq or Melio. These services let you pay supplier invoices with a credit card, and they handle the rest by sending your supplier a wire or ACH. Everyone's happy. Sort of.
The Catch... isn't there always one?
These platforms charge for the privilege. Usually 2.9 percent.
That means if you send a $50,000 payment, you're handing over $1,450 in fees. That's not nothing. That's a nice espresso machine. Or one-fifth of an Amazon aggregator.
But here's where it gets interesting.
If you're using the right card, you'll earn around 1-2 points per dollar. And if you're redeeming those points well (think transfer partners, business class flights, premium hotels) your value per point can hit 3 to 4.5 cents.
The Math (Stay With Me)
- 2 points per dollar
- Redeem at 3 cents per point = 6 percent value back
- Redeem at 4.5 cents per point = 9 percent value back
- Plastiq fee = 2.9%
So yes, you paid $1,450. But you got $3,000 to $4,500 in value. That is, if you don't redeem your points for Olive Garden gift cards and unlimited breadsticks.
The Break-Even Point
If you're redeeming at less than 1.5 cents per point, this strategy loses money. You're upside down. You're paying to earn less.
But hit 1.5 CPP (cents per point) or higher and you're in the green. Cross 3 CPP and you're running a profitable arbitrage machine that also flies business class.
Bottom Line
Using a platform like Plastiq to pay your Amazon suppliers can be profitable if you know what you're doing with points. If you don't, you're just voluntarily paying extra fees for no good reason. Which is not a strategy.
- Paying suppliers with a credit card via Plastiq costs about 2.9%
- If you redeem points at 3 to 4.5 CPP, it can return 6 to 9 percent in value
- Break-even is 1.5 CPP
- Know your cards & your redemption strategy.
A lot of this comes from a paid group called Freedom Travel Systems. Want an intro? Just ask.