Times When It's More Cost-Effective to Pay with Cash Instead of Credit Card

Tuesday, 21 May 2024, 21:30

Discover three scenarios where paying with cash could save you money compared to using a credit card. Learn about gas station transaction fees, local businesses imposing credit card fees, and the benefits of budgeting with cash. While most of the time credit cards are advantageous for rewards and protection, carrying cash for specific purchases can be a smart financial move.

https://store.livarava.com/118aebb1-17ba-11ef-a3d0-9d5fa15a64d8.png — Times When It's More Cost-Effective to Pay with Cash Instead of Credit Card

Paying with cash vs credit card: Balance the advantages

I'll come out and say it: most of the time, a credit card is the best method of payment. Most credit cards have 0% fraud liability protection, which protects you against unauthorized transactions, along with a slew of other shopping and travel protections, like extended warranties and travel insurance.

Credit cards' drawbacks and when to use cash

Credit cards might trigger processing fees, adding 2% to 3% surcharge on your purchase amount.
Gas purchases may cost more per gallon when using a credit card due to transaction fees.
Local businesses sometimes apply fees to credit card transactions, making it cheaper to use cash.
Cash can help with budgeting expenses and avoid overspending.

Overall, while it's beneficial to have a cash back credit card for rewards and protection, carrying cash can be advantageous for certain transactions.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.