What won't you pay with Credit Card?

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mac_guy
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What won't you pay with Credit Card?

Post by mac_guy » Thu Mar 12, 2015 7:47 pm

I will use my rewards CC (Citi Double Cash) just about every time I can, for almost everything I buy.

However, I make a few exceptions. There are generally two scenarios where I won't use credit:

1.) When I will have to pay a service charge for the use of a CC, say in paying my local real estate taxes.

2.) When I shop at small, independently owned businesses. When I make small purchases in small, local business, I try and use cash. I've been told that smaller businesses pay higher transaction fees and I don't feel right eating into their profit margin on a small purchase - especially if I know the owner.


Anyone have other scenarios where you deliberately won't use your credit card?
Last edited by mac_guy on Thu Mar 12, 2015 8:07 pm, edited 1 time in total.

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tylerdurden
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Re: What won't you pay for with your Credit Card?

Post by tylerdurden » Thu Mar 12, 2015 7:53 pm

Definitely won't use it if there is a "convenience" fee of any sort. I also generally don't use it for lower cost items, at small businesses (if I have the cash), and certain places that just feel shady. Other than that, I try to use credit cards for everything else to get the rewards.
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MathWizard
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Re: What won't you pay for with your Credit Card?

Post by MathWizard » Thu Mar 12, 2015 7:54 pm

I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I do use it for large purchases for cash flow.

livesoft
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Re: What won't you pay for with your Credit Card?

Post by livesoft » Thu Mar 12, 2015 7:58 pm

I pay for everything with a credit card. I use my credit card with vending machines, too.

I consider it 2% cash back on all purchases.

Edit to add: I pay college tuition with a credit card because no added fees. I pay insurance with a credit card because no added fees. I do ot pay property taxes with a credit card because there would be added fees. I have paid with a credit card when the added fees do not overcome the cash back and my perceived benefit (say in Australia).
Last edited by livesoft on Fri Mar 13, 2015 6:54 am, edited 2 times in total.
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JLJL
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Re: What won't you pay for with your Credit Card?

Post by JLJL » Thu Mar 12, 2015 7:59 pm

MathWizard wrote:I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I do use it for large purchases for cash flow.


ok I'll bite... how is it a tax in your situation?

MathWizard
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Re: What won't you pay for with your Credit Card?

Post by MathWizard » Thu Mar 12, 2015 9:19 pm

JLJL wrote:
MathWizard wrote:I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I do use it for large purchases for cash flow.


ok I'll bite... how is it a tax in your situation?


Merchants have to pay a fee on all CC transactions.

With few exceptions, the CC companies do
not allow differential pricing, so everyone must
pay an inflated price.

Gas stations already had their own CCs so
they managed to avoid the no differential pricing.
I'd prefer if all had the normal price for goods with the
option of paying a higher fee for using a CC
I'd even pay an annual fee for a CC rather than
pay some % extra on every purchase .

CC companies don't give cash back rewards
out of the goodness of their heart, they give you
1%. charge the merchant 3% and pocket the difference
But the merchant can only get money from
you, so you pay the extra 3% so that you can get back
1%

That is the extra 2% tax.



Merchants cannot forgo customets with a CC
so

fmzip
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Re: What won't you pay with Credit Card?

Post by fmzip » Thu Mar 12, 2015 9:22 pm

^^^^

I agree, the comment infers that the fee the merchant pays is directly/indirectly passed on to "us" the consumer, nothing in this world is "free"

I pay for everything with a credit card unless a fee for using one is assessed

killjoy2012
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Re: What won't you pay with Credit Card?

Post by killjoy2012 » Thu Mar 12, 2015 9:31 pm

Huh? If I need to buy something and the price is the same for credit as cash, then how is paying by credit a 2% tax? It would seem you'd be paying more 'tax' by paying with cash in that scenario since not only are you paying the inflated price, but then you're also not taking advantage of the CC rewards either.

I get the concern/dislike of 3% merchant fees being passed on the customer, but for 99% of the places in life where you buy things, cash = CC price regardless.

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Re: What won't you pay with Credit Card?

Post by bhsince87 » Thu Mar 12, 2015 9:34 pm

Any place that offers a cash discount gets cash from me.

I also don't use them in any purchase that involves the BATFE. That's the bureau of alcohol, tobacco, firearms, and explosives.

If I were so inclined to spend money there, I also wouldn't use them at adult entertainment establishments...
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Re: What won't you pay with Credit Card?

Post by madbrain » Thu Mar 12, 2015 9:36 pm

Haircuts. My hairstylist takes credit cards, but instead of charging extra fees for the convenience, even though it is California law.
I have pointed it to her many times, even showing her the California civil code on my smartphone.
Same for massages.

The small merchants just don't get it. I don't have it in me to report them to the authorities, but it irks me.

IMO, all merchants should be able to pass on their costs. This would drive down credit card usage and/or merchant fees.
Only then would most consumers really understand the real cost of using credit cards.

I will gladly forget all the credit rewards if that means I can pay lower prices to begin with by either paying cash or using debit cards - or, god forbid, checks.

harikaried
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Re: What won't you pay for with your Credit Card?

Post by harikaried » Thu Mar 12, 2015 9:51 pm

tylerdurden wrote:Definitely won't use it if there is a "convenience" fee of any sort. I also generally don't use it for lower cost items, at small businesses (if I have the cash), and certain places that just feel shady. Other than that, I try to use credit cards for everything else to get the rewards.
Our life insurance payment has a convenience fee for credit cards, but we earn more than the fee with 2% cash back.

Looking at our credit card usage from last year, we have almost 200 charges under $5. A good chunk of those are parking and Kindle. There's some coffee shops, but we only go when meeting others.

fmzip
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Re: What won't you pay with Credit Card?

Post by fmzip » Thu Mar 12, 2015 9:54 pm

killjoy2012 wrote:Huh? If I need to buy something and the price is the same for credit as cash, then how is paying by credit a 2% tax? It would seem you'd be paying more 'tax' by paying with cash in that scenario since not only are you paying the inflated price, but then you're also not taking advantage of the CC rewards either.

I get the concern/dislike of 3% merchant fees being passed on the customer, but for 99% of the places in life where you buy things, cash = CC price regardless.



The inference is the credit card "tax" is built into the cost of the products being sold. Even if the price is the same for credit or cash, the merchant is passing his overhead onto the consumer in the cost of the product.

So yes, it makes more sense to use the credit card rather than cash regardless

surfhb
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Re: What won't you pay with Credit Card?

Post by surfhb » Thu Mar 12, 2015 10:32 pm

I pay everything with my AMEX Green Card....even my rent. I receive free airfare every 18 months to Europe this way as well

Vacation paid for, products are insured, no problems with fraud, ect. Its silly not to use a credit card for every purchase possible IMO
Last edited by surfhb on Thu Mar 12, 2015 10:34 pm, edited 1 time in total.

JDDS
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Re: What won't you pay with Credit Card?

Post by JDDS » Thu Mar 12, 2015 10:34 pm

fmzip wrote:
killjoy2012 wrote:Huh? If I need to buy something and the price is the same for credit as cash, then how is paying by credit a 2% tax? It would seem you'd be paying more 'tax' by paying with cash in that scenario since not only are you paying the inflated price, but then you're also not taking advantage of the CC rewards either.

I get the concern/dislike of 3% merchant fees being passed on the customer, but for 99% of the places in life where you buy things, cash = CC price regardless.



The inference is the credit card "tax" is built into the cost of the products being sold. Even if the price is the same for credit or cash, the merchant is passing his overhead onto the consumer in the cost of the product.

So yes, it makes more sense to use the credit card rather than cash regardless


Nice how you're drawn into a cycle...

mac_guy
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Re: What won't you pay with Credit Card?

Post by mac_guy » Thu Mar 12, 2015 10:39 pm

surfhb wrote:I pay everything with my AMEX Green Card....even my rent. I receive free airfare every 18 months to Europe this way as well

Vacation paid for, products are insured, no problems with fraud, ect. Its silly not to use a credit card for every purchase possible IMO


Wow. Your landlord lets you pay for your rent with a credit card? Do they charge you anything extra? I have a tenant and I'd never thought about accepting CC payments. Is this common?

surfhb
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Re: What won't you pay with Credit Card?

Post by surfhb » Thu Mar 12, 2015 10:44 pm

mac_guy wrote:
surfhb wrote:I pay everything with my AMEX Green Card....even my rent. I receive free airfare every 18 months to Europe this way as well

Vacation paid for, products are insured, no problems with fraud, ect. Its silly not to use a credit card for every purchase possible IMO


Wow. Your landlord lets you pay for your rent with a credit card? Do they charge you anything extra? I have a tenant and I'd never thought about accepting CC payments. Is this common?


No.....I started using the Target AMEX Red Card. It allows you to load it with "cash" from my green card then use their bill pay tool online to mail my landlord the rent check. My next experiment is to funnel my monthly saving through my green card to gain the extra points. Load the red card.....transfer that amount to my bank....then pay back the green card. Make sense?

My old property management company took AMEX but they charged a fee....The Red Card is free. I hope it stays around

http://frequentmiler.boardingarea.com/t ... d-redcard/

TravelforFun
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Re: What won't you pay with Credit Card?

Post by TravelforFun » Thu Mar 12, 2015 11:07 pm

I pay for everything with one of my two credit cards unless they charge a fee for using them. Amex for Costco stuff and Barclay Arrival for everything else. Love the Barclay one.

Jim180
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Re: What won't you pay with Credit Card?

Post by Jim180 » Thu Mar 12, 2015 11:17 pm

The only things I use my credit card for are gas, and ordering things from Amazon.

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Re: What won't you pay for with your Credit Card?

Post by navyasw02 » Thu Mar 12, 2015 11:41 pm

MathWizard wrote:
JLJL wrote:
MathWizard wrote:I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I do use it for large purchases for cash flow.


ok I'll bite... how is it a tax in your situation?


Merchants have to pay a fee on all CC transactions.

With few exceptions, the CC companies do
not allow differential pricing, so everyone must
pay an inflated price.

Gas stations already had their own CCs so
they managed to avoid the no differential pricing.
I'd prefer if all had the normal price for goods with the
option of paying a higher fee for using a CC
I'd even pay an annual fee for a CC rather than
pay some % extra on every purchase .

CC companies don't give cash back rewards
out of the goodness of their heart, they give you
1%. charge the merchant 3% and pocket the difference
But the merchant can only get money from
you, so you pay the extra 3% so that you can get back
1%

That is the extra 2% tax.



Merchants cannot forgo customets with a CC
so


The merchants dont reduce their price equivalent to their CC fee if you pay cash. I dont give anybody a profit if I dont have to.

Spirit Rider
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Re: What won't you pay with Credit Card?

Post by Spirit Rider » Fri Mar 13, 2015 12:17 am

if it is under $10 and <=2% cashback, I use whatever is more convenient. This removes the noise from my credit card statements.

Paul78
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Re: What won't you pay with Credit Card?

Post by Paul78 » Fri Mar 13, 2015 4:45 am

Anything that cost more with a credit (when rewards are factored in) than by a different method. I know in the past I have lived in apartments that allow cc payments but charge a 3% fee.

Any small purchases that are no necessary. If I go to the vending machine to buy I candy bar which I dont need I would use cash. The purpose of this is to try to reduce petty unnecessary purchases and cash "feels" more real than using a credit card.

Bars/clubs- Easier to keep track of the tab and limit your expenses if you go into the place with x amount of cash instead of a cc. By opening a tab I could be in line for surprising charges the next morning or find out I left my cc at the bar/club the following morning.

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Re: What won't you pay with Credit Card?

Post by nisiprius » Fri Mar 13, 2015 5:29 am

1) I'll use cash if there's a discount for cash.

2) I'll always ask if the STORE prefers credit or debit, although they must have revised the rate scale as it's been a long time before they expressed a preference.

3) I will not use a credit card for anything large on the theory that I might be distorting my judgement of affordability.

4) In everyday life I mostly use debit rather than credit because my experience is that my wife and I do in fact regulate our spending based on how much we see in the checking account. In fact we will pay off a credit card balance online before it is due, to avoid having to think "Oh, the ATM machine says our checking balance is X but I need to keep in mind that it's really X-$1,215."

5) I won't use a DEBIT card at merchants that have been in the news for having recently had some big dramatic data breach. If it's small I'll hit an ATM machine and pay (literal) cash. If it's big, I'll use a CREDIT card on the theory that unauthorized credit card purchases would be less of a nuisance to deal with. I know this is locking the barn door after the horse has escaped, but I do it anyway.
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Re: What won't you pay with Credit Card?

Post by VictoriaF » Fri Mar 13, 2015 6:03 am

I pay cash whenever I can, especially for small purchases. I have recently acquired several credit cards to generate travel awards, and after the initial spending limits are reached I keep these cards active with small purchases such as $5 + tax salad at a local Safeway. This is an all around win: the cards are active, I have a continuing supply of fresh salads, and each trip to Safeway is a nice walk.

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Re: What won't you pay with Credit Card?

Post by Tycoon » Fri Mar 13, 2015 6:27 am

Local real estate taxes, or anything that charges me more to use plastic.
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Re: What won't you pay with Credit Card?

Post by dolphinsaremammals » Fri Mar 13, 2015 6:38 am

I don't pay property taxes with a credit card. They have some astronomical fee, like hundreds of dollars for a quarterly payment, for doing so. I asked the town finance guy why this is, but didn't get an answer that I understood. I also pay cash at the farmers' market and for parking fees.

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Re: What won't you pay with Credit Card?

Post by lightheir » Fri Mar 13, 2015 6:59 am

I hate cash.

Takes space, you have to replenish it if you use it regularly, and most importantly, it's a royal pain to track your expenditures with cash whereas it's trivially easy with a credit card (especially with mint.com.) Plus you have a digital record of the expense, whcih is much easier to store than a loose paper receipt (like for warrantees.)

Credit card for everything for me unless there's an exorbitant fee. (My property tax falls into this category.)

That said, anyone who has any overspending issues should avoid credit cards like the plague. (I actually have the opposite problem - I underspend, so not an issue for me.)

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Re: What won't you pay for with your Credit Card?

Post by JLJL » Fri Mar 13, 2015 7:35 am

MathWizard wrote:
JLJL wrote:
MathWizard wrote:I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I do use it for large purchases for cash flow.


ok I'll bite... how is it a tax in your situation?


Merchants have to pay a fee on all CC transactions.

With few exceptions, the CC companies do
not allow differential pricing, so everyone must
pay an inflated price.

Gas stations already had their own CCs so
they managed to avoid the no differential pricing.
I'd prefer if all had the normal price for goods with the
option of paying a higher fee for using a CC
I'd even pay an annual fee for a CC rather than
pay some % extra on every purchase .

CC companies don't give cash back rewards
out of the goodness of their heart, they give you
1%. charge the merchant 3% and pocket the difference
But the merchant can only get money from
you, so you pay the extra 3% so that you can get back
1%

That is the extra 2% tax.



Merchants cannot forgo customets with a CC
so


I knew I would regret it.

Wellfleet
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Re: What won't you pay with Credit Card?

Post by Wellfleet » Fri Mar 13, 2015 7:40 am

We generally try to pay cash for <$20 transactions at mom and pop businesses. We use the cards at all chains.

Professor Emeritus
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Re: What won't you pay with Credit Card?

Post by Professor Emeritus » Fri Mar 13, 2015 8:00 am

I hope people realize that cash transaction are not "free" to the merchant either. There is a reason airlines don't take cash. Cash imposes security and accounting costs. Electronic transfers are cheaper.

Checks replaced cash for a reason and Electronic funds transfers are even cheaper.

I pay my housekeeper with an EFT.

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lthenderson
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Re: What won't you pay with Credit Card?

Post by lthenderson » Fri Mar 13, 2015 8:08 am

I pay exclusively by credit card unless:

1. They don't take them.
2. There is a fee.
3. They are using credit card imprint machines instead of scanners (this is still a problem here in rural America)
4. When overseas in third world countries except at a few larger trusted places that handle them regularly.

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Re: What won't you pay with Credit Card?

Post by TIAX » Fri Mar 13, 2015 8:50 am

It's my understanding that debit is always cheaper than credit for a store but why would you possible care. Would you choose a brand that's higher profit margin?

I don't see why you need your checking account balance to tell you if you should be buying something or not at all. But if you need some balance to tell help you, you can always check your credit card balance in real time just like you can check your checking account balance. I really don't see the difference (and of course there is none) other than having to pay earlier.

nisiprius wrote:1) I'll use cash if there's a discount for cash.

2) I'll always ask if the STORE prefers credit or debit, although they must have revised the rate scale as it's been a long time before they expressed a preference.

3) I will not use a credit card for anything large on the theory that I might be distorting my judgement of affordability.

4) In everyday life I mostly use debit rather than credit because my experience is that my wife and I do in fact regulate our spending based on how much we see in the checking account. In fact we will pay off a credit card balance online before it is due, to avoid having to think "Oh, the ATM machine says our checking balance is X but I need to keep in mind that it's really X-$1,215."

5) I won't use a DEBIT card at merchants that have been in the news for having recently had some big dramatic data breach. If it's small I'll hit an ATM machine and pay (literal) cash. If it's big, I'll use a CREDIT card on the theory that unauthorized credit card purchases would be less of a nuisance to deal with. I know this is locking the barn door after the horse has escaped, but I do it anyway.

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midareff
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Re: What won't you pay with Credit Card?

Post by midareff » Fri Mar 13, 2015 9:05 am

I don't use a cc anytime the fees exceed the 2% Fido AX or Citi 1+1 reward. Other than that it's just a discount I use everywhere I can.

chessmannextmove
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Re: What won't you pay with Credit Card?

Post by chessmannextmove » Fri Mar 13, 2015 11:02 am

Any item with an extra cc charge > cc cash back

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Re: What won't you pay for with your Credit Card?

Post by astrohip » Fri Mar 13, 2015 11:17 pm

MathWizard wrote:I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I can't figure the logic in this, or the math wizardry involved?

Everything is a tax on purchases. Their rent, the salaries they pay, the insurance to cover you if you fall on their premises. It's called G&A.

But if they don't specifically pass on a charge to you, and only you, for a specific action, then it's not a tax you can avoid. And if you can't avoid it, it shouldn't be a decision point. :confused
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daveatca
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not much

Post by daveatca » Sat Mar 14, 2015 12:22 am

1. My barber. He is 89 and takes only cash.
2. Special event parking is cash only.

Everything else is credit card or electronic banking.

pennywise
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Re: What won't you pay with Credit Card?

Post by pennywise » Sat Mar 14, 2015 6:40 am

Also use credit card unless there is a service charge (property tax) or a small business owner (exercise instructor) who will benefit from not having to pay the processing fee.

We have a USAA credit card that offers a fantastic reward program; it's actually not available any more but we're grandfathered in. So the more I charge to the card the more points I earn. Haven't paid for a plane ticket or a gift card in years. I have set as many accounts as possible to auto bill to that cc, then I just pay the bill in full each month. A

As others have mentioned this strategy works best if you manage your credit as if you are paying cash, ie not overspending or running a balance. Side benefit is great ease in evaluating one's expenditures--USAA provides a summary document each year which lists expenses in various categories in addition to a full list of charges. Since the lion's share of our household spending is done with that card it is a quick and simple process to review what we've spent in the past year.

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Re: What won't you pay with Credit Card?

Post by sport » Sat Mar 14, 2015 10:01 am

Duplicate bridge entry fees are cash only.

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Re: What won't you pay with Credit Card?

Post by Johno » Sat Mar 14, 2015 12:22 pm

killjoy2012 wrote:Huh? If I need to buy something and the price is the same for credit as cash, then how is paying by credit a 2% tax? It would seem you'd be paying more 'tax' by paying with cash in that scenario since not only are you paying the inflated price, but then you're also not taking advantage of the CC rewards either.

I get the concern/dislike of 3% merchant fees being passed on the customer, but for 99% of the places in life where you buy things, cash = CC price regardless.

It's not a tax and the argument that it is is a basic failure of logic, obviously. If nobody paid with credit cards, or more realistically the legal/regulatory system was changed to disallow it or greatly cut the fees, then some portion of the savings to merchants (if any, depending the alternative it's not clear there would be any actually) might show up in lower/slower growing prices. But as things stand it's a prisoner's dilemma on a massive scale. Not paying with a credit card will do virtually zero to make anybody else not use a credit card, so that act in itself will not recover any of the merchant credit card cost to me, besides which I'm missing out on 1-5% cash back.

So, avoiding pointless gestures that cut off my own nose to spite my face, I use a (cash back) CC for absolutely everything where it's
-accepted
-there's no posted discount for cash larger than the cash back
-I can't negotiate a special discount for cash larger than the cash back
-there's no 'convenience fee' for using CC that's larger than the cash back

It includes small merchants. We have a budget for charity that we feel is appropriate, otherwise we try to maximize value in our purchases. Also I don't see a reason to tip in cash where CC is accepted for the basic bill (as in restaurants) besides to facilitate tipped employees cheating on their taxes or cheating their employers or coworkers if they agreed to share tips. I do pay tips in cash where it's customary to pay cash overall (my barbershop still) or standalone tips (hotel porters etc).

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Re: What won't you pay with Credit Card?

Post by chuck h » Sat Mar 14, 2015 10:02 pm

I was in a dollar store today and purchased an item for $1.00 plus 6% Pa sales tax or $1.06. Was going to hand the cashier 2 one dollar bills, but then realized that I do not want 94 cents in cash in my pocket, so I swiped my credit card to make the purchase.

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Re: What won't you pay with Credit Card?

Post by munemaker » Sat Mar 14, 2015 10:32 pm

I use credit cards for everything possible...large or small, independent or chain...I really don't care. The only exception is I won't pay extra to use am credit card. To the degree possible, I avoid establishments who charge a fee for using the card. Obviously you can't do this in all cases, such as taxes and tuition.

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Re: What won't you pay with Credit Card?

Post by Jeff7 » Sat Mar 14, 2015 10:42 pm

mac_guy wrote:What won't you pay with credit card?

1) Vending machines, for the few times I visit one. (I've seen less than a dozen vending machines that take cards, and a few of them were on a Penn State University campus and only worked with their LionCash cards.)

2) If I'm making a small purchase and the store says "cash only if <$X.XX."

3) If I received cash as a gift and I'm buying something that'll conveniently use up most of it. (Otherwise I take it to the bank and convert it into electronic money.)

4) Online places that charge an absurd "because-we-can" convenience fee. If I have an alternate, I'll even close up the shopping cart and shop elsewhere if I can. For companies like Vanguard, the shift to online operations rather than doing so much by phone was a very large cost-saver for them. Imagine if they'd then go and disincentivize that advantage by adding a convenience fee for the privilege of using their website. (However, most places that have a convenience fee are those which are the exclusive provider of something. TicketMaster comes to mind right away.)




Link.
"A Dun and Bradstreet study several years ago showed people spent 12-18 percent more when they paid with credit cards instead of cash."

I've seen that sort of thing repeated a few places now, with various studies showing the same thing, though the percent increase changes. However, the lowest I've seen is +10%.

1) People using cards tend to spend more.
2) People using rewards cards tend to spend more than the value of the rewards they will receive.


So I can't help but think that refusing to take cards while saying "I don't want to pay a 3% fee" means that you are also saying "I want to turn away the increased revenue from customers who are using credit cards." Some people don't even carry cash these days, so that $6 lunch sale you might have otherwise made is now $0, and they're off buying from someone else.

I bought iced coffee and some doughnuts from Tim Hortons last week. If I would have paid using the $5 cash that happened to be in my wallet, I'd have only gotten the coffee. But I always have my cards, which of course link to a stash of money that is more than what my wallet can hold, so I used one of them. And putting it that way, it's along the lines of the reason that shopkeepers introduced shopping carts many decades ago: Before them, people only bought what fit in a hand basket. With the cart, they could load up on items much more freely. Yes, you need more floor space to accommodate the carts, but you have happier customers, who also aren't going to be thinking "Oh...I guess I won't buy this, then I'll have to carry it the rest of the time I'm here."



Cash isn't free either:
- Cost to pay a cashier to make change.
- Counting up the money, either manually or with a machine.
- Trips to and from the bank, or else pay for armored vehicle delivery service.
- Bigger picture: There's an overall cost to taxpayers for developing, minting, and maintaining a sizable supply of counterfeit-resistant currency.

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Raymond
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Re: What won't you pay with Credit Card?

Post by Raymond » Sat Mar 14, 2015 11:08 pm

[response to deleted OT comment removed by admin alex. this comment was on topic, it just didn't make sense without the missing context]

Like others have previously mentioned, I pay cash at local small businesses, even if they take credit cards - my barber, the shoe-repair/clothing alteration shop, the Vietnamese pho restaurant, the sushi place.

Credit cards for everyone else.
"Ritter, Tod und Teufel"

madbrain
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Re: What won't you pay with Credit Card?

Post by madbrain » Sat Mar 14, 2015 11:11 pm

Jeff7 wrote:Cash isn't free either:
- Cost to pay a cashier to make change.
- Counting up the money, either manually or with a machine.
- Trips to and from the bank, or else pay for armored vehicle delivery service.
- Bigger picture: There's an overall cost to taxpayers for developing, minting, and maintaining a sizable supply of counterfeit-resistant currency.


The cashier still has a job even if you pay by credit card.
There is a risk of fraud with cash, too - employees theft.

One thing you did not mention is checks - those don't incur the 2-3% credit card fees.
However, there is of course also an increased risk of fraud with checks, and if everyone paid with checks, it would require more cashiers as it takes longer for someone to write a check at a store than to process a card, assuming the store will even accept them.

MathWizard
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Re: What won't you pay for with your Credit Card?

Post by MathWizard » Sat Mar 14, 2015 11:15 pm

astrohip wrote:
MathWizard wrote:I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I can't figure the logic in this, or the math wizardry involved?

Everything is a tax on purchases. Their rent, the salaries they pay, the insurance to cover you if you fall on their premises. It's called G&A.

But if they don't specifically pass on a charge to you, and only you, for a specific action, then it's not a tax you can avoid. And if you can't avoid it, it shouldn't be a decision point. :confused


No wizardry involved.

The OP asked what I would do.

The logic is not just dollars and cents. There should be a less costly (monetary) transaction
mechanism. Cash worked fine. Checks added convenience, but added costs. CC's are
adding convenience but adding cost. I just wish the cost were only added to those who
chose to use CCs. If the true cost were added only to those using CCs, the cash back
argument would go away. (I'll pay an extra 3% to get 1% back??)

I don't think that my sentiment is much off base with the "keep costs low" idea to which
we aspire.

It would be nice to implement a low cost exchange mechanism, just as Jack Bogle implemented
low fee index funds. Unfortunately, each such mechanism ends up as a profit center.

Perhaps I should just give up tilting at windmills, and buy stock in CITI and Chase.

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topper1296
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Location: Nashville TN

Re: What won't you pay with Credit Card?

Post by topper1296 » Sat Mar 14, 2015 11:19 pm

My annual auto registration. The "convenience fee" the county clerk's office charges for renewing online is far greater than the cost of a stamp. I only write out about 3 checks a year and this is one of them.

second-guesser
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Re: What won't you pay with Credit Card?

Post by second-guesser » Sun Mar 15, 2015 12:34 am

I quit using a credit card at restaurants after someone secured
my CC number and used it for purchases of clothing. The credit card company
covered the charges but I learned it is easy for persons to steal CC information.
I do not like to like to lose sight of my CC although I know CC info can be
stolen at gas pumps and even with cameras by other shoppers at grocery stores.

S-G

Jeff7
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Re: What won't you pay with Credit Card?

Post by Jeff7 » Sun Mar 15, 2015 12:50 am

madbrain wrote:
Jeff7 wrote:Cash isn't free either:
- Cost to pay a cashier to make change.
- Counting up the money, either manually or with a machine.
- Trips to and from the bank, or else pay for armored vehicle delivery service.
- Bigger picture: There's an overall cost to taxpayers for developing, minting, and maintaining a sizable supply of counterfeit-resistant currency.


The cashier still has a job even if you pay by credit card.
True, though if each transaction goes faster with a card than with cash, fewer cashiers are required.


There is a risk of fraud with cash, too - employees theft.

One thing you did not mention is checks - those don't incur the 2-3% credit card fees.
However, there is of course also an increased risk of fraud with checks, and if everyone paid with checks, it would require more cashiers as it takes longer for someone to write a check at a store than to process a card, assuming the store will even accept them.
Yes, checks will certainly take longer, unless they've got those handy printers at the register that put in all the necessary information. And, depending on your checking account, the checks themselves will cost you something.

Johno
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Re: What won't you pay for with your Credit Card?

Post by Johno » Sun Mar 15, 2015 9:17 am

MathWizard wrote:
astrohip wrote:
MathWizard wrote:I pay for very little with CC

I consider it a 2 to 4% tax on all purchases.

I can't figure the logic in this, or the math wizardry involved?


No wizardry involved.

The OP asked what I would do.

The logic is not just dollars and cents. There should be a less costly (monetary) transaction
mechanism. Cash worked fine. Checks added convenience, but added costs. CC's are
adding convenience but adding cost. I just wish the cost were only added to those who
chose to use CCs. If the true cost were added only to those using CCs, the cash back
argument would go away. (I'll pay an extra 3% to get 1% back??)

I don't think that my sentiment is much off base with the "keep costs low" idea to which
we aspire.

No wizardry but no logic either. Your personal decision not to use CC has essentially zero effect on the cost structure of commerce in general, so there is no cost saving coming back to you, unless you can negotiate a discount for cash (which is when I pay cash, if there's such a discount, and it exceeds the cash back %). Whereas you lose the cash back from using the card, so actually increase your net costs in actual real world dollars and cents. OP did ask what you do, and you can do as you like, but there's no logic to your implication, that *you* avoid any extra cost by not using a CC.

The BH idea would be to actually lower your costs (use CC, get cash back), not raise your costs via meaningless gestures.

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Go Blue 99
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Re: What won't you pay with Credit Card?

Post by Go Blue 99 » Sun Mar 15, 2015 12:56 pm

I always use cash to pay for drinks at a bar. I've had many friends forget to close out their tab at the end of the night. Or had bartenders accidentally add other people's drinks to their tab.

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VictoriaF
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Re: What won't you pay with Credit Card?

Post by VictoriaF » Sun Mar 15, 2015 1:14 pm

I don't use credit cards for purchases at Target. I use the REDcard.

Victoria
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