Is the Fee Worth It? The Math on Paying Business Bills by Card

Is the Fee Worth It? The Honest Math on Paying Business Bills by Credit Card

Every business owner asks the same question: "Why would I pay 2% to pay a bill I could pay for free from my bank account?" Fair question. Here's the full math — including when it doesn't work.

Chexy's business fee is 1.99%–2.40% per payment. Against that, four things stack in your favour.

1. Your time (the one nobody prices in)

Before any points math: consolidating every payable into one dashboard replaces five payment workflows — banking app, cheques, CRA portal, supplier portals, pre-authorized debits — with one. If payment admin takes you even four hours a month and your time is worth $100/hour, that's $4,800/year before a single point is earned. You started your business to run it, not to administer its payments.

2. Float: free working capital

Every dollar paid by card stays in your account until your statement is due — weeks longer. Run $50,000/month through cards and you're structurally holding ~$50,000 more cash at all times. Versus a line of credit at 8–10%, that float is worth roughly $4,000–$5,000/year in avoided interest, and it lets you capture supplier early-payment discounts (2/10 net 30 annualizes to 36%+).

3. Redemption rate: why points beat their face value

This is the piece most fee sceptics miss. A "2% fee vs. 2 points per dollar" comparison assumes a point is worth one cent. Redeemed well — flights, premium cabins, transfer partners — points are routinely worth 1.5 to 2+ cents each.

Run the numbers at a 2% fee and a card earning 1.5 points per dollar:

• $20,000 a month costs $400 in fees and earns 30,000 points — worth $450 at 1.5¢, or $600 at 2¢.
• $50,000 a month costs $1,000 and earns 75,000 points — worth $1,125 to $1,500.
• $100,000 a month costs $2,000 and earns 150,000 points — worth $2,250 to $3,000.

At every level, the points alone clear the fee — before float, time, or tax treatment even enter the picture.

4. Tax treatment: the quiet kicker

The fee is generally deductible as a business expense, like bank or merchant fees — so its after-tax cost is lower than sticker. Meanwhile, credit card rewards are typically not taxed by the CRA. You deduct the cost; you keep the benefit clean.

And the welcome-bonus multiplier

New business cards commonly require $5,000–$15,000 of spend in three months for bonuses worth hundreds to thousands of dollars. Your existing payables — one tax remittance, one big supplier order — clear that without spending a dollar you weren't already spending.

When it's NOT worth it

Honesty builds trust, so: skip the card if you carry a balance (interest destroys everything — pay in full or don't do this); if your card earns under ~1 point per dollar with weak redemptions and float doesn't matter to you; or for payments where you've negotiated a better direct discount for cash. And for anything you'd rather keep off a card, Chexy lets you pay by bank pull in the same dashboard — consolidation still applies.

Frequently asked questions

What exactly is the fee?

1.99%–2.40% per payment on business accounts, added to the amount charged to your card — which means you earn points on the fee too.

Is the fee tax-deductible?

Generally yes, as a business expense — confirm with your accountant for your situation.

What's the single best payment to start with?

Your next CRA remittance or biggest supplier invoice — large, unavoidable, and previously earning nothing.

Do your own math — then do it with your real numbers. Get started with Chexy for Business →