Why would B&H promote this??

Started 2 months ago | Discussions thread
Michael Fryd
Michael Fryd Forum Pro • Posts: 11,276
Re: Why would B&H promote this??
3

mamallama wrote:

Michael Fryd wrote:

tbcass wrote:

It's away to avoid paying sales tax. Why gripe about it. It's foolish not to pay any credit card off right away.

Technically, you are still paying the taxes. You are merely getting other benefits (i.e. a rebate on the product purchase) that offset the financial burden of the taxes.

In many states it is illegal for a store to pay the taxes for you. B&H had to be very careful in how they structure this program so that it falls within the letter and spirit of the law.

Yes, it's a disguised loophole to get around certain regulations - sort of a mild con job.

The regulations are designed to:

  1. Ensure that the sales taxes are paid
  2. Make sure the tax is collected on the actual purchase price
  3. Make sure the customer knows that sales tax has been collected
  4. Make sure the sales tax is actually paid by the customer (sales taxes paid may warrant a different treatment for tax purposes)

I don't see where this program gets around the letter or the spirit of any of these.

If an item sells for $100 with $8 of sales tax, the customer pays $100 for the item, pays the $8 in sales tax, and gets an $8 reward to his credit card.

Compare this to using a typical 1% cash back credit card.  The customer pays $100 for the item, pays $8 in sales tax, and gets a $1.08 cash back reward to his credit card.

Apple is offering a 3% reward to those who purchase from Apple using Apple's new credit card.

Many cards offer 5% cash back rewards on purchases from certain merchants.

Other than offering a reward that matches sales tax instead of a fixed percentage, how is PayBoo any more of a "con job" or "loophole" than any other cashback credit card?

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