Credit, Debit, or Cash

[FIYes]

How do you pay for purchases? Credit, debit or cash? I have mostly used credit cards for the past several years. While I pay for a few things with cash (my hairdresser) I mostly use credit cards. I use credit cards for the rewards and during COVID I used credit cards as a contactless way of paying. Of course, I pay off the balance each month. The card is a convenience for me.

I don’t have a debit card. I occasionally get a notice from my bank and credit union that I’m eligible for a debit card. I do have an atm card for the bank. I just don’t like the lack of protection of the debit card compared to the credit card.

Lately I see more places adding a fee for using a credit card. That changes the way I’m thinking about this. Has this trend changed your credit card usage? In the past, it was a nobrainer to use the credit card and reap the rewards.

 

[OldShooter]

I generally use my bank debit card. Economically silly, but my deep-down psyche apparently sees using the credit card as borrowing money.

My wine merchant is a one-man band. It's only Dave in his small store with well curated inventory. I always write checks for wine to save him the cost of the card fees. He appreciates it. I also negotiated a small discount on some minor car body work by paying via a check.

 

[MC Rider]

Credit card then I can easier see what was spent and where.
Cards auto pay monthly.

Debit card has it's dangers, no grazi.
Used to do mostly cash but it is harder to track.

 

[mn54]

Lately I see more places adding a fee for using a credit card. That changes the way I’m thinking about this. Has this trend changed your credit card usage? In the past, it was a nobrainer to use the credit card and reap the rewards.

I have also seen this happening. either a fee for using a cc or a discount for using cash. depending on the size of the fee/discount this would effect whether i use a cc or pay with cash.

 

[Dash man]

I try to tip with cash. Never use a debit card. Credit cards are used for most things except small contractors and businesses where I use cash or check. I don’t carry checks, so it has to be Bill Pay.

 

[brett]

Almost always credit card. Never debit. Very seldom use cash.

 

[MC Rider]

Lately I see more places adding a fee for using a credit card. That changes the way I’m thinking about this. Has this trend changed your credit card usage? In the past, it was a nobrainer to use the credit card and reap the rewards...........

Yes. A while back I was buying a motorcycle for about $11k. I could pay CC and add 3% and ride home today. Or keep the 3% by writing a check and waiting a week to be sure it cleared. I wrote a check.

 

[DrRoy]

CC for the rebate and fraud protection.

 

[audreyh1]

CC for the rebate and fraud protection.

+1

 

[statsman]

Credit card for most purchases. Cash for small businesses (most give discounts for cash), wanting to avoid the tip screen (food services), and for small amounts (quick trip to the grocery store). Never debit. Checks for a few payments that would otherwise tack on fees (property tax bill being one such payment).

 

[scrabbler1]

I don't use my debit card other than at ATMs or when making a transaction at my local bank. The debit card does serve as a back-up to my credit card in case something goes wrong with the credit card (which does happen once a long, long while).

I'll use my credit card for pretty much anything over $30 unless there is a fee to use it or a discount for using cash, mainly at gas stations and many local businesses. I make many purchases under $30, so I do use cash often.

 

[Car-Guy]

~80% CC's. ~20% Cash. <1% Checks.

 

[Texas Proud]

CCs for me... with cash for a few things there and there... and a few checks...



No debit card as the protections on a CC are much better..

 

[EastWest Gal]

Mostly credit card, sometimes cash, rarely a check. Pay it off each month.

 

[RetiredHappy]

I get about $3K back on my BOA premium rewards card, 100K hotel points on my Marriott Bonvoy credit card, another $200 on Citi (Costco) each year. If you don't use credit cards, you are leaving money on the table. I pay off the credit card balance in full so I am not incurring any interests.

 

[Sunset]

I use credit cards almost all the time. Like the fraud protection, purchase record, extended warranty or other benefits, and the 2.6% , 3.5% , 5.25% earnings.

Write 4 checks per year.

Never use a debit card for purchases.

 

[HarveyS]

In 2021 and 2022 my spending was 98.2% credit card or check, 1.8% cash. I have not analyzed 2023.
Debit card for ATM only.

 

[SecondAttempt]

I have not used a debit card in decades. I rarely use cash except for the woman who cuts my hair and street vendors rarely. The upcharge for credit cards has given me a pause on a few bills but overall I get a lot of benefits from putting everything on a credit card that the merchants mostly absorb. For me credit cards are a win. I pay all balances off every month so no interest charges.

 

[Dtail]

I use credit cards almost all the time. Like the fraud protection, purchase record, extended warranty or other benefits, and the 2.6% , 3.5% , 5.25% earnings.

Write 4 checks per year.

Never use a debit card for purchases.

Same here. Only use a debit card to get cash from my bank.

 

[Alan]

Almost exclusively credit cards, sometimes cash, but never debit card.

 

[iloveyoga]

Almost exclusively credit cards, sometimes cash, but never debit card.

Same. Cash for some tips and a few places I go that offer cash discount.

 

[FLSUnFIRE]

Credit for Rewards, Protection, and Float along with the occasional rare no-fee 0% APR offer that I'll take advantage of.

Never use a debit card; only have one because they went away from "ATM cards" and it stays locked up at home. I'll spend random cash I get at small businesses/tips or sometimes will use it to make a payment on my Chase Freedom card since I can do so at the ATM next door.

 

[donheff]

I don't think I have ever bought anything with my debit card - just used it for ATM withdrawals. I pay for almost everything on credit cards with points and fraud protection. They are on autopay. I once paid for an entire semester of college for my son on a CC before they wised up and imposed fees.

 

[foxcreek9]

Credit card for most purchases. Cash for small businesses (most give discounts for cash), wanting to avoid the tip screen (food services), and for small amounts (quick trip to the grocery store). Never debit. Checks for a few payments that would otherwise tack on fees (property tax bill being one such payment).

Here is another way of looking at using a CC for PT. Our county charges 2.25%, so you lose with a 2% cash back but you gain interest by letting the money float for up to 6 weeks. So the $90 fee generates $81.80 in cb and then you earn $4.04 (5.25%) per week of float ($4k payment). 2 week float is a wash, 3+weeks your are a few dollars ahead.

 

[The Cosmic Avenger]

I use our 2% Fidelity Visa for as much as I can, except for small local businesses, like family-run local restaurants, or the vendors at our local farmer's market, I'll usually pay them in cash. Never by debit, to me it's a CC without the cash back or fraud protections. But we pay our CC off every month.