Many people select a credit card for a particular rewards scheme, yet find they can’t use that card on some of life’s major transactions. CardUp seeks to solve that problem, by accepting your credit card repayments and then completing designated transactions on your behalf.
This guide will break down CardUp, including the benefits and what to keep in mind when using the service.
CardUp works by being a middleman in your transactions. Instead of directly transferring funds from your account to a vendor, you pay CardUp via credit card. CardUp will then transfer the funds to your designated vendor. CardUp charges you a transaction fee for each payment made.
In order to use CardUp, you’ll need to sign up for an account. Once you sign up, you’ll need to enter the details of your preferred credit card, or cards. Once your account is ready you can schedule payments in either one-off or recurring instalments.
What type of payments can I use CardUp for?
CardUp allows you to use your credit card to pay for services that don’t traditionally accept card payments. This includes:
- Education and tuition fees
- Property and income tax
- Condominium fees
- Season parking
CardUp can’t be used for all payment types. For example, you cannot use CardUp for home loan repayments.
There is a “miscellaneous” option, which you can select should you wish CardUp to review a certain payment type. If you have a specific repayment in mind for CardUp, be sure to check it’s an available option before signing up.
There are a number of benefits to using CardUp services. These include:
- Extra rewards. This is the main reason to use CardUp. By using CardUp you’ll be increasing your rewards earnings, regardless of your credit card’s reward structure. You’ll be able to increase your points accumulation or cashback benefits while paying the same bills you’ve always paid.
- Recurring payments. CardUp allows you to schedule recurring payments. This feature is ideal for rent and other repeat charges. Scheduling recurring payments means you only need to fill in payee and card details one time, which saves you a lot of extra effort and spares you the risk of missing a payment. Just remember to cancel the action if you no longer need to pay the charge.
- No sign-up required for vendors. Your vendor (or whoever you’re paying your bills to) doesn’t need to sign up to CardUp for you to utilise the services. Just fill in the payee’s bank account details and CardUp will transfer the funds.
- Credit card compatibility. CardUp accepts payments from Visa, Mastercard and American Express. This allows you to make the most of CardUp’s services, regardless of the credit card you have.
There are some factors to keep in mind when using CardUp, both before you sign up and while using the service. These are:
- Fees apply to each transaction. This is how CardUp makes money. Every transaction you complete using CardUp will incur a transaction fee. At the time of writing, on 16 June 2020, CardUp was advertising a 2.25% fee per transaction – this was a special rate for customers who used a promotional code and link their account with a Visa or Mastercard credit card issued in Singapore. Also, this rate was only applicable for payments of $130 or above. Meanwhile, customers with Singapore-issued American Express Credit Cards were subject to a fee rate of 2.6% per transaction (with a minimum CardUp fee of $3.40 applying to payments of $130 or less). Such fees can add up over time, especially if you’re relying heavily on CardUp. That being said, if your card offers cash rebates or frequent flyer miles, you may be able to offset some of this transaction fee.
- Increased credit card use. While it’s handy to accrue a greater number of rewards, you have to keep in mind that you’re upping your credit card spend. Make sure you keep an eye on credit limits and the size of your credit card repayments. You don’t want to become overburdened by increased interest charges on your credit card.
CardUp is also available for business owners and operators. When making payments, all of the same features apply for business users, including the ability to set recurring payments and the potential increase in reward earnings. Once again, vendors do not need to be signed up for CardUp for businesses to utilise CardUp services.
Business-specific advantages of CardUp include:
- Increased business cash flow. Using CardUp allows businesses to utilise the interest-free credit line on cards. If a rent bill comes in and a business pays directly from the company bank account, that cash is no longer on hand. By using CardUp, businesses can make the most of business credit card limits, preserving funds in the company account.
- Increased efficiency. You can centralise all your payments with CardUp, including rent, supplier charges and payroll. This could simplify the time and effort it takes to manage company expenses.
Business eligibility for CardUp
In order to apply for a business account with CardUp, your business must:
- Have a valid Unique Entity Number (UEN)
- Be registered with ACRA
- Only use CardUp for business-related payments
CardUp provides convenience and undeniable reward-earning potential. It can be a highly beneficial financial tool, assuming you’ve assessed the transaction fee and your ability to make credit card repayments.
What happens if CardUp misses a payment?”
Chances are your credit card has not processed a payment to CardUp, rather than CardUp missing a payment. If this happens, you should contact CardUp immediately and it will be in touch with you within one business day. In general, CardUp charges your credit card three days before a payment is due, then pays your intended vendor via bank transfer on the payment due date.
Is CardUp legal?
Yes, CardUp is a legal service and has been recognised by the fintech (financial technology) industry and banks such as UOB.
Is CardUp safe and secure?
CardUp relies on the same data security systems and structures that banks use.