In recent years, consumers have been less and less incentivized to use credit cards for everyday purchases. That’s because a number of businesses have started adding a credit card surcharge to people’s bills to get reimbursed for those unavoidable processing fees.
You may, for example, find that if you use a credit card to pay for a restaurant meal, you’ll have a surcharge tacked on in the vicinity of 3% to make up for the processing fee involved. That turns a $100 tab into $103, so if you have the cash, you can save a little money.
Similarly, some gas stations offer a pretty big discount for paying in cash. Even if you have a credit card with great gas rewards, if you can pay $0.10 less per gallon, that might be the better deal.
But in some situations, it almost always pays to use a credit card. Here are three places you should avoid paying in cash.
1. Supermarkets
While some businesses charge extra for using a credit card, supermarkets have largely not yet adopted this practice. It generally pays to buy your groceries with a credit card to earn cash back on your purchases.
Some credit cards give you bonus cash for supermarket purchases, such as 2% or 3% cash back. But even if you’re only eligible for 1% back, that’s still better than the $0 back a cash or debit card purchase will result in.
2. Ticket sale websites or box offices
You may be able to use a debit card to buy event tickets online. And you may have the option to pay cash at a box office if you’re able to purchase your tickets in person.
But it pays to use a credit card when you’re buying event tickets because it gives you more protection. If there’s an issue with your ticket, such as if it never arrives or your event is rescheduled or canceled, you may have an easier time getting a refund if you’ve paid by credit card.
It’s especially important to use a credit card if you’re buying a resale ticket. Sites like Ticketmaster allow customers to sell tickets they no longer want, and those purchases are supposed to be verified. But sometimes, problems come up. So for peace of mind, a credit card is your best bet.
3. Electronics stores
Electronic purchases, by nature, tend to be costly. This doesn’t mean every laptop you buy will run you $1,000 or more. But chances are, you’re looking at spending at least a few hundred dollars on a new device of that nature.
That’s why it’s a good idea to use a credit card for electronics purchases. You may get an extended warranty courtesy of your credit card, or more protection in the event that your device malfunctions and the included warranty falls short.
In some cases, using a credit card means paying more for whatever it is you’re buying. But in these situations, a credit card makes the most sense. And using cash might actually come back to bite you.
