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B&H announced that they are launching the B&H Payboo card in conjunction with Synchrony Bank. It’s a no annual fee store card that will only work at B&H. There is no signup bonus for the card.
Purchase APR is a whopping 29.99%, so you’ll want to make sure to pay off your card on time.
The card will give you instant savings equal to the amount of the sales tax charged on a purchase from B&H.
If you live in a state where B&H does not charge sales tax, namely Alaska, Arizona, Arkansas, Colorado, Delaware, Florida, Georgia, Idaho, Kansas, Louisiana, Massachusetts, Montana, Missouri, New Hampshire, New Mexico, Ohio, Oregon, Pennsylvania, Puerto Rico, Rhode Island, Tennessee, Texas, and Virginia, then the card won’t offer any benefit.
The card will offer a discount equal to sales tax in CA, CT, HI, IL, KY, MD, ME, MI, MN, MS, NC, NJ, NV, NY, OK, SC, SD, UT, WA, and WI.
Alabama, District of Columbia, Indiana, Iowa, Nebraska, North Dakota, Vermont, West Virginia, and Wyoming restrict the advertising of a sales tax discount, so in those cases it’s just called savings, but it should still be equal to the sales tax rate.
I can’t say that I’m a fan of the Payboo name, but this is a very solid rebate on B&H purchases if you live in a location that has hefty sales tax on B&H purchases. Frankly I’m surprised that B&H can afford to effectively rebate the sales tax on items across the board, but they say that they are remitting the full sales tax amount to each state and that there is no limit to the savings.
Non-taxable items like gift cards and tax-exempt customers don’t qualify for a discount.
Of course it’s worth noting that you will lose out on points and benefits like extended warranty and purchase protection that other credit cards offer.
Personally I live in Ohio where B&H doesn’t charge sales tax, so this card doesn’t offer anything for me. It’s too bad there’s no rebate for anyone shipping items to these states. Using another card I can earn points and have credit card benefits. I also use my Chase Ink Cash card to earn 5 Chase points per dollar on purchases from Amazon (which I value between 7.5%-10% back), but there is no such equivalent rebate for B&H purchases.
Big B&H spenders may do very well with this card, but occasional buyers probably won’t be find it worthwhile to signup for another credit card as they won’t see enough incremental savings over other cards.
In other words if you spend $1,000/year at B&H and live in NYC, you’ll save $88.75/year in sales tax at 8.875%. But if you use a card like The Blue Business℠ Plus Credit Card from American Express that earns 2 AMEX points per dollar or Chase Freedom Unlimited Card that earns 1.5-3 Chase points per dollar or the Chase Ink Unlimited Card that earns 1.5 Chase points per dollar, that will be worth between 3%-6% back, plus you’ll also have extended warranty and purchase protection. 3% back would be a rebate of $30, so the B&H card would save you another $58/year, at the cost of the loss of credit card protections and needing to apply for a card that doesn’t offer a signup bonus.
But if you spend $20,000/year at B&H and live in NYC you would save some $1,775/year in sales tax versus a 3% on another card that would be worth $600. That would certainly make it worth applying for this card.
Will you signup for the B&H Payboo card?