B&H Payboo Credit Card FAQ: here's how the no sales tax discount works
B&H recently announced its new Payboo Credit Card with a unique perk that refunds sales tax on all orders in the form of an instant rebate. We're answering your questions and giving you the lowdown on how it works, including the pros and cons of the new payment method.
As reported on May 6, B&H Photo launched a new payment method for orders placed via its marketplace. Dubbed the Payboo Card, this store credit card offers shoppers the opportunity to order computers and electronics without paying sales tax. But how exactly does it work? We're answering your questions to determine if Payboo is right for you.
Payboo Credit Card FAQ
As reported on May 6, B&H Photo launched a new payment method for orders placed via its marketplace. Dubbed the Payboo Card, this store credit card offers shoppers the opportunity to order computers and electronics without paying sales tax. But how exactly does it work? We're answering your questions to determine if Payboo is right for you.
Payboo Credit Card FAQ
- Where does Payboo work?
Payboo is a store credit card valid on purchases made via B&H's desktop website, its mobile app, NYC SuperStore and by phone. It can only be used on B&H purchases and is not a Visa, Mastercard, American Express or Discover Card. - Can international shoppers use Payboo?
Yes. The Payboo Card can be used to place orders shipped internationally. However, the sales tax-equivalent refund will not apply. Drilling down to Apple hardware, B&H is unable to ship Mac and iPad orders to international addresses due to manufacturer restrictions. - Is there a limit to the amount I can save on sales tax?
No. There is no cap on how much shoppers can save. - Which bank backs the Payboo Credit Card?
The B&H Payboo Card is issued through Synchrony Bank. - How is B&H getting out of collecting sales tax? Do I have to report it?
B&H will still collect and remit state sales tax in accordance with state sales tax laws and regulations. Customers are still paying sales tax so there are no special forms to file. The credit will be issued instantly for the equivalent tax amount, like a coupon discount -- but without the code. - Is this card for personal use only, or can businesses apply?
Although the Payboo Card is a personal credit card and not a corporate or business card, it can be used to pay for orders via B&H's business-to-business (B2B) and education (EDU) portals. Individual employees of a business account making a personal purchase are also welcome to participate. - How is the sales tax credit issued? Do I have to wait for a gift card?
The key benefit of the Payboo Card is that the tax-equivalent credit is issued instantly. There's no need to wait for a gift card or even make an additional purchase. The refund is issued on all non-tax-exempt purchases shipped to eligible states at the time of purchase, when Payboo is used as the payment method. - Are there any exclusions?
The loyalty reward does not apply to gift cards or other tax exempt purchases. Customers must also reside in a qualifying state. At press time, the tax-equivalent refund offer is not valid in Alabama, District of Columbia, Indiana, Iowa, Nebraska, North Dakota, Vermont, West Virginia, and Wyoming. If shipping to those states, B&H recommends customers enter their shipping zip code on the Payboo page to check for available savings. Orders shipped to states with no sales tax are also not eligible for the loyalty reward. - Where will I see the savings?
Payboo account holders will see the savings during checkout on the Order Details & Shipping Method screen. Below is a screenshot with the Payboo Card Savings section outlined. - What are my chances for approval?
While specific approval parameters have not been disclosed, WalletHub states Synchrony pre-approval offers have been mailed to consumers who have at least a Fair credit score (600-699).
Comments
Does B&H explicitly state whether these "loyalty reward" purchases count as "promotional purchases", or can they be paid in full at the end of the month with no interest charged?
Of course if my state tax is 4% the "real" cost is $96.15 and I'm "only" getting a $3.85 reduction. In a way this credit is unfair (I get a bigger discount if I live in a state with higher tax). But the real question is how they can afford to discount everything they sell so heavily?
My tax rate is 8.875, that's pretty high, and I'm included, while much lower tax rate states like Alabama at 4% are currently excluded.
1) B&H customers who live in a state that requires B&H to collect sales tax at the time of purchase are paying sales tax at the time of purchase.
2) B&H customers who live in a state that does not have a sales tax are not paying sales tax at the time of purchase.
3) B&H customers who live in a state that has sales tax but do not require (and cannot force) B&H to collect sales tax at the time of purchase are still responsible for paying the sales tax directly to their state, typically under what is considered a "use tax" law.
Tax liability is between the state and the customer. However, sellers like B&H can be legally compelled to collect sales taxes on behalf of states based on the legal definition of the seller's nexus within the state, i.e., case #1 above. The scheme/gimmick described in this article only applies to situation #1. Customers who are in situation #2 don't care either way because there is no sales or use tax liability. Nothing has changed for customers who are in situation #3 above. B&H is not going to rebate customers who live in states that do not require B&H to collect sales tax on behalf of the state. If they did, customers could cheat both B&H and their home state by failing to remit use taxes when they file their state tax returns, and the vast majority of customers would do so.
What B&H is really doing here is using a scheme/gimmick to protect what they feel is their "no sales tax" competitive advantage that they have promoted for many years. A less obtuse way to do the same thing would be to focus on their customer's "out of pocket" cost being the same whether or not the customer is paying sales tax at the time of purchase. The "no sales tax" thing is part of their marketing facade even though "the customer pays no sales tax" has never been technically/legally true for every single state that requires buyers to pay sales tax (in the form of use tax) directly to their state. After all, it's no skin off B&H's back if their customers decide to cheat their home state by not paying use taxes when the seller did not (and could not!) collect sales taxes on behalf of the state. B&H is totally in the clear either way as long as they keep doing what they are legally required to do, which they have always been doing.
Potential interest is usually calculated from the purchase date, but only charged if the balance isn't payed in full in the billing cycle.
And they did say they deduct the tax from the purchase price:
"B&H will still collect and remit state sales tax in accordance with state sales tax laws and regulations. Customers are still paying sales tax so there are no special forms to file. The credit will be issued instantly for the equivalent tax amount, like a coupon discount -- but without the code."
B&H does have a second card without the tax-equivalent loyalty refund that does offer no interest financing on qualifying purchases, which would fall under the "promotional purchases" umbrella. More details on that can be found here: https://bhpho.to/2PVLPLQ
Hope that helps!
Went through the initial application process (through B&H Photo's site...admittedly a mistake in hindsight). At the end of the application, a message displayed that the process was almost complete but that I needed to call some nondescript toll-free number.
The ensuing phone conversation sounded as though I was talking to someone in the "hills" of Tibet or even another planet, the signal was that bad (almost inaudible with severe echos). The individual, allegedly representing Synchrony, instructed me to send a 5 second video of myself and email an image of my state driver's license or state ID card (both of which would've identified my cell number...I have been getting an abundance of junk calls on my cell phone since the beginning the recent US elections). Ahhh, sending a selfie vid, to an unknown party (allegedly located in Manila, P.I. however with a great deal of time spent in the P.I. the male on the phone claiming he was with Synchrony did NOT sound Filipino) as well as a state photo ID with personal data...I don't think so. All this for less than a $500 purchase...again, nope! Told the male claiming to be with Synchrony, "Just forget it" and terminated the call.
The final outcome: a credit hit on either some or all of my credit reports resulting in another 30-50 point reduction on these goofy credit reports. Additionally, without going into detail, reading more after terminating the application process, there were some questionable, dubious, mildly disturbing details about this Synchrony's Payboo T&Cs some mentioned by others in this forum (for one, read "JBA's" comments).
Despite the large volume of business I had done with B&H Photo over the years, if B&H needs to desperately stoop to such questionable tactics, I'm done, relationship severed. In hindsight again, this ridiculous process (Synchrony application) that I allowed myself to be naively or ignorantly pulled into, just threw up numerous red flags. Rather than paying our socialist city's forced homeless subsidy (highest sales tax in O.C. California in a city with the lowest average/median income), I'll just severely curtail my purchases. Thanks for that though B&H!