It’s been covered fairly in-depth since it’s introduction, but the basics are it’s essentially a store credit card for B&H issued by Synchrony Bank and it works like “cash back”/rewards credit cards, but it’s automatic, so when you pay the statement it’s already been applied and it’s outside of the actual store purchase transaction, so it doesn’t run afoul of any manufacturers stipulations on discounting/rebating certain items. The card has a ridiculous APR and they’re of course banking(ha ha) on people not paying it off every month. But, if you pay your card off every month and your state charges sales tax, it’s kind of crazy not to use it. Your state gets its sales tax, you are in compliance with paying sales tax and you pay a net amount for the item equal to not having sales tax charged. Win-win-win.If B&H is absorbing the cost of paying sales tax to states without listing it on the invoice, it's affecting their net revenue generated by the transaction and has to be made up somewhere. They're probably hoping I won't pay the balance off in time and they get to charge me high interest on the unpaid balance. In the end, it seems what they are effectively doing is getting away with charging less than the Canon allowed minimum advertised price!
If Canon sets the minimum advertised price at $1,999 for an item and B&H sells it to me for $1,999 +$159.92 sales tax = $2,158.92 and then rebates me $159.92 on the credit card statement I've sent them $1,999. They'll keep $1,839.08 and send my state $159.92 on their monthly or quarterly sales tax report.