Thought this topic deserved it's own thread (a few posts in the link below mention it).

http://www.fatwallet.com/forums/finance/753735?query=chargesmart

Looks like this company has only been around a few months. Has anyone tried this service?

There is a per payment fee of $4.95 plus a handling charge of 2.29% of the transaction amount. Therefore, with a 5% cash rewards card the break-even point would be a charge of $182.66 (0.05x = $4.95 + 0.0229x). With the same card a $1500.00 mortgage payment yields a profit of $35.70 (fee = $39.30).

http://www.chargesmart.com/

Sounds like a good way to use a 5% card to pay off the house, if you have the cash on hand...

From the case study on the ChargeSmart website: Link

"Greg has a $6,574 mortgage payment that is due by the 10th of each month."

A monthly payment of $6574 seems like an extreme example used here to make their case!!

What's the break even point on a 2% Cash Back card?

What card would consider this an "everyday" purchase an award 5%???

My guess is that your mortgage company already has the money and Chargesmart will come after you.

makingmovies said:From the case study on the ChargeSmart website: Link

"Greg has a $6,574 mortgage payment that is due by the 10th of each month."

A monthly payment of $6574 seems like an extreme example used here to make their case!!

Wow, as rich as Greg is, do you think he cares about the rewards? lol.

thok said:What's the break even point on a 2% Cash Back card? I almost took you seriously for a second . I need to have my coffee before I start posting on FWF.

Glitch99 said:Can you pay a lump sum to your HELOC, use the HELOC to pay off the credit card, and repeat? With a 0.71% margin (less the $4.95 fee) it'd have to be a rather large payment. But an $8k payment on a 3% card would net $50, repeated a couple times a month, could score an extra $1200+ for a year.

Wouldn't you also be paying interest on the HELOC? (Unless you have the HELOC loan anyway and are paying interest anyway...then you can use this service to float your debt 28 days at a time and pay nearly 0% interest on the HELOC)

fiftythreebytes said:Therefore, with a 5% cash rewards card the break-even point would be a charge of $182.66 (0.05x = $4.95 + 0.0229x). With the same card a $1500.00 mortgage payment yields a profit of $35.70 (fee = $39.30).

Not to nitpick or anything, but wouldn't the true break even point be at $166.40? Because you'd be earning 5% back on the $4.95 service fee and the 2.29% fee as well? Or are those not charged to the card?

Maybe my math is wrong but here is my equation
.05x + .05(4.95 + .0229x) = 4.95 + .0229x
.05x + .25 + .001145x = 4.95 + .0229x
.051145x - .0229x = 4.70
.028245x = $4.70
x = $166.40

with some rounding in there etc.

So on a $1500 payment, you'd make $75 + $.25 + $1.72 - 4.95 - 34.35 = $37.67?

Also note that breakpoint at 3% rewards (Citi AMEX Plat with 3pts/dollar for 24 months - $125 annual fee) would be $616.42. That could be a little more useful for those looking just to make their regular mortgage payments for a couple years and benefit from the float.

If I have countrywide, can I pay Bank of America and have it work?