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Pay rent via credit card

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  1. #31

    Join Date
    Aug 2020
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    Quote Originally Posted by tparker:
    Been using KeyChain Pay for a few months now... works as advertised, and have been getting the cashback to my HSBC Red card as promised.

    I'm curious how HSBC make money from this given the cash back is higher than the processing fee... but alas i'm not complaining.
    It looks like it's only really worth it for the HSBC Red Credit Card which I have seen them pushing for with various promotions. For the "normal" HSBC credit cards, it seems like one would end up paying more in transaction fees than earning reward cash (on a yearly basis) according to their calendar.

    I guess they may be counting on maybe people not using and their reward cash or redeeming items from their store (with inflated prices).
    caipiroska likes this.

  2. #32

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    On which category do you need to have your multipliers in order to generate the most benefit? And can you change them online? Not a big friend of the app...

    Edit: found it home and furniture


  3. #33
    Quote Originally Posted by tparker:
    Been using KeyChain Pay for a few months now... works as advertised, and have been getting the cashback to my HSBC Red card as promised.

    I'm curious how HSBC make money from this given the cash back is higher than the processing fee... but alas i'm not complaining.
    Charging interest when people make minimum payments on their credit card statements or convert rental payments into installment plans.

  4. #34

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    Mar 2010
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    Quote Originally Posted by caipiroska:
    And can you change them online? Not a big friend of the app...
    I thought you can only change categories once per year, towards year's end. Not sure how useful Home and Furniture is for your general spending otherwise, but fine if you have no use for the HSBC card for other things.

    Quote Originally Posted by Cocobber:
    For the "normal" HSBC credit cards, it seems like one would end up paying more in transaction fees than earning reward cash (on a yearly basis) according to their calendar.
    For the Red card, i'm still curious how HSBC or KeyChain Pay make any money.

    For the "normal" cards - actually if you choose the correct Reward category then it's 2.4% which still trumps the 2.1% fee charged by KeyChain Pay. Their website claims up to 5.6% for the non-Red cards...no elaboration, but I can only guess that's 2% from the Red Hot Categories + 2.4% via a separate "online and overseas spending rewards" promotion, then for Signature cards you get an additional 1.2% through this promotion. This is a guess.

    In any case, be aware that there are caps to these "Red Hot Rewards": you'll max out after about $10-13K per quarter so unless your rent is very cheap, you won't get much more than about $600 rebate in three months.

    To that end, Red card is better with no cap, even though it's "only" 4% cash back.

    Edit: seems I contradicted myself and that your conclusion of "on a yearly basis" is therefore indeed correct

  5. #35

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    Quote Originally Posted by civil_servant:
    Charging interest when people make minimum payments on their credit card statements or convert rental payments into installment plans.
    Really? Wow.

    I suppose banks know the % of people who default, do instalments, or pay monthly interest... and if they simply increase their customer base they'll increase that revenue.

    Still - a fundamentally loss making product that relies on ancillary revenue to survive?

    I suppose if budget airlines can pull it off.....

  6. #36
    Quote Originally Posted by tparker:
    Really? Wow.

    I suppose banks know the % of people who default, do instalments, or pay monthly interest... and if they simply increase their customer base they'll increase that revenue.

    Still - a fundamentally loss making product that relies on ancillary revenue to survive?

    I suppose if budget airlines can pull it off.....
    I'm sure there's huge demand right now with decreased incomes due to covid. You either terminate your lease and risk being on the hook for the remainder of the fixed term of your lease or you use a loan to hold you over.

  7. #37

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    Nov 2005
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    Quote Originally Posted by tparker:
    In any case, be aware that there are caps to these "Red Hot Rewards": you'll max out after about $10-13K per quarter so unless your rent is very cheap, you won't get much more than about $600 rebate in three months.

    To that end, Red card is better with no cap, even though it's "only" 4% cash back.

    Edit: seems I contradicted myself and that your conclusion of "on a yearly basis" is therefore indeed correct
    >> 2Promotional period is from 1 January 2020 to 31 December 2020. You are entitled to receive extra RewardCash for your first HKD100,000 spending at designated spending categories and merchants during the effective period indicated in the “Red Hot Rewards of Your Choice” programme details shown on the monthly credit card statement. To participate in this promotion, cardholders are required to register on or before 31 October 2020.>>

    thats 100k for the year right ? why was there a 13k per quarter cap ?

  8. #38

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    I stand corrected: I should stop replying to messages at midnight.

    Indeed, the "Red Hot Rewards" (the 2% on top of basic 0.4%) is for first $100K - though still not enough for most people's rent.

    The "maximum $300 RewardCash per phase" (quarter) applies to the separate "online & overseas spending" promotion, which is likely what KeyChain Pay refer to with their 5.6% (I make that $15,000 per quarter at 2%). There's an additional 2% for Premier card holders (also capped at $300) but I don't think it's relevant as that's overseas only.. although the T&C seem to indicate Signature holders would get the 1.2% additional... I don't see mention of a cap for that.

    Now I see how HSBC make money in any case; by confusing the hell out of everyone.

    caipiroska and shri like this.

  9. #39

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    Oct 2006
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    Just a follow up. My application has been accepted. My rent is normally due 22nd of the month. KeyChain Pay will take the money from my CC on 8th of the month.

    What are they doing with the money between 8th and 22nd of the month. Presumably its being used for something to make them money?

    Also KeyChain Pay charge me 2.1% for this service. I presume the credit card processor charges them less, say 1% so they are obviously making money there.

    I do get my 4% cashback from HSBC though as its treated as an online transaction.


  10. #40

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    Quote Originally Posted by pin:
    Just a follow up. My application has been accepted. My rent is normally due 22nd of the month. KeyChain Pay will take the money from my CC on 8th of the month.

    What are they doing with the money between 8th and 22nd of the month. Presumably its being used for something to make them money?

    Also KeyChain Pay charge me 2.1% for this service. I presume the credit card processor charges them less, say 1% so they are obviously making money there.

    I do get my 4% cashback from HSBC though as its treated as an online transaction.
    From the look of it they might be looking to change this ?

    "Important Notice: “Terms and Conditions for HSBC Red Credit Card Reward Scheme” will be amended with effect from 12 September 2020. For details, please read the “Important Notes and Declarations” in Red credit card application form or click hereclick here about Important Notes and Declarations for Credit Card Applicants This link will open in a new window."
    See the latest version:
    https://cdn.hsbc.com.hk/content/dam/...clarations.pdf


    Now they have "online transaction" and "online bill payment"... My guess is they will classify Keychain under online bill payment and you immediately drop to 0.4% on the rebate ?
    Let us know what happens after 12 Sep.
    Indeed the older version of the terms did not have the bill payment category: https://www.hsbc.com.hk/content/dam/...conditions.pdf
    Last edited by freeier; 03-09-2020 at 11:04 AM.
    shri, pin and hike like this.

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