Would you pay a fee to use your CC to get points?

[NokOnHarts]

This is frustrating to me, what would you do? Both my power and water company charge a "minimal fee" (ha!) to use a credit card to pay the bill. So would you pay $4-5 to use your credit card to pay a bill if you would get 150-200 points on your card to do so?

 

[leadfootlevi]

From what I've seen, the fee is always higher than the reward, but I don't use CC with points, I get cash back. If the 150-200 points is "worth" more than the fee, then yes.

 

[smitch425]

This is frustrating to me, what would you do? Both my power and water company charge a "minimal fee" (ha!) to use a credit card to pay the bill. So would you pay $4-5 to use your credit card to pay a bill if you would get 150-200 points on your card to do so?

You would ONLY ever do this if the point dollar value was more than the fee. For instance on utilities I would get $1 worth of rewards for every $100 I put on my Disney Visa. My company charges $4.95 in fees to pay with a credit card, so I would have to spend $495 each month in gas just to break even. It would be ridiculous for me to do that. Even in the coldest of winters it has never been more than $150/mo.

You always have to do the math to see what the benefit (or lack there of) will be.

 

[mrodgers]

What do you get with the points? How you redeem the points would be the question that needs answered.

I use my points for Exxon gas cards. 6900 points gets me a $50 gift card. Thus, 1 point is the equivalent to $0.007, not even a penny.

Paying $5 for a $200 transaction would net me $1.45 in benefits. Definitely wouldn't be a good idea for me.

 

[Natalie's Mommy]

no i would not. i will not pay a fee to use my credit card to pay a bill anywhere unless i was going to get an insane amount of points that would more than make up for it. When verizon decided they were gonna charge people a monthly fee to pay their bill with a credit card instore, online or by phone i stopped my paperless statements and now they can pay to send me a bill instead.

 

[NokOnHarts]

no i would not. i will not pay a fee to use my credit card to pay a bill anywhere unless i was going to get an insane amount of points that would more than make up for it. When verizon decided they were gonna charge people a monthly fee to pay their bill with a credit card instore, online or by phone i stopped my paperless statements and now they can pay to send me a bill instead.

Actually, verizon isn't charging. That was something they were going to start but because enough people complained they never went through with it. Still free to pay online with a CC.

 

[ICF]

It would only make sense if the value of the "points" is worth more than the fee.

For example...My annual HOA bill was due this week. The bill was $435. I was going to pay via CC (like I do most everything) until I found out that the fee to do this was $9.95. No way were the points (which would equal $0.44 Disney Dollars or 1300 Hilton Honors pts) worth the $10 they wanted to charge me.

 

[bumbershoot]

Actually, verizon isn't charging. That was something they were going to start but because enough people complained they never went through with it. Still free to pay online with a CC.

Yep, I think it took them 3 days (after a threatened investigation) to back down.



On my card the 100-200 points would be about a dollar or two. So NO it wouldn't be worth it.

IF I could, I would try to save a bit myself, throwing a dollar or so into savings, when I paid with a debit card or check. Not the same as "free" money, but it's *something*.

 

[Natalie's Mommy]

Actually, verizon isn't charging. That was something they were going to start but because enough people complained they never went through with it. Still free to pay online with a CC.

Yep, I think it took them 3 days (after a threatened investigation) to back down.

i am aware of this, and i have gone back to auto bill pay with paperless statements, the the second verison annonced they were gonna do that it took me a whol 10 mins to switch my stuff.

 

[North of Mouse]

NO WAY!! They always (no matter what bill it is - if they charge a fee for it) make you pay more to use it than you would get back for anything

 

[seashoreCM]

I would not pay the fee for the purpose of using my credit card for racking up points.

But there have been times when I mislaid a bill and forgot about it and then had to pay in a hurry so I had to use the credit card and pay the fee. In this case, of course, using a credit card that gives points is better than using a credit card that does not.

 

[NokOnHarts]

Thanks all, great points and well taken! Just so frustrating to me that they choose to call this a "convenience" charge. There is nothing convenient about charging me for something that used to be free! Ugh.

 

[scrapquitler]

Thanks all, great points and well taken! Just so frustrating to me that they choose to call this a "convenience" charge. There is nothing convenient about charging me for something that used to be free! Ugh.

I refuse to pay anything with the credit card that adds the 'convenience charge'. My DD school allows you to pay for lunches online, via credit card. But wait, there is a 4% convenience charge. Yeah, not happening. I send a check instead. Cheaper is more convenient, thank you very much.

Same thing with my town's car taxes, automobile registration fee, state income tax payment, etc. No way. I'm not paying extra for the convenience of paying my bill.