FIVE SITUATIONS WHERE YOU SHOULD AVOID PAYING WITH A CARD

In today’s world, most of our purchases can be made with a card or even just a tap of a phone.

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However, financial experts advise that it’s wise to always carry at least some cash—and even recommend using it for certain types of purchases, according to Bestlifeonline.

1. Items You Might Return

If you think there’s a chance you’ll return something you’ve purchased, paying with cash is the smarter option, says Steven Holmes, a financial expert and senior investment advisor at iCash.

Many shoppers opt to buy multiple sizes of the same clothing item, try them on at home, and then return the ones that don’t fit. If you’ve paid with a card, getting your refund might take several days, as stores typically return the money to your original payment method.

“If you used a credit card, the refund might not appear in your account for several days. But if you paid with cash, the store will refund you immediately when you return the product,” explains Holmes.

2. Purchases While Traveling

When treating yourself on vacation, using cash can save you from unexpected extra fees. Carter Seut, a financial advisor and CEO of Credit Summit, suggests using cash for purchases made during trips, especially abroad.

“Using a credit card in another country might lead to hefty foreign transaction fees,” Seut warns.

Paying with cash can also help you stick to your travel budget.

“If you’re on vacation and plan to spend a set amount, cash ensures you stay on track with your financial goals,” he adds.

3. Everyday Small Purchases

Cash shouldn’t just be your currency of choice while traveling—it’s also useful for small daily expenses. Michael Collins, CFA, a finance professor at Endicott College in Beverly, Massachusetts, advises using cash for routine transactions like groceries.

“Small purchases should be made with cash because the exchange of money is minimal, and using cash deters impulse buying,” he explains, according to Poslovni.hr.

Cash can help you manage your daily budget and prevent overspending.

“It’s also important to use cash for minor purchases to avoid overdraft fees associated with debit and credit cards,” adds Collins.

4. Buying Second-Hand Goods Online

Platforms like Facebook Marketplace or Craigslist are excellent for saving money on pre-owned items. However, Jake Hill, a financial expert and CEO of DebtHammer, advises against using cards or online payment methods for such transactions.

“Purchases on Craigslist are always best done with cash. Sharing sensitive information with strangers is never a good idea,” Hill cautions.

5. Fuel Purchases

The next time you’re at a gas station, opt for cash instead of a card, suggests Bill Rice, a certified financial consultant and board advisor at Fiona.

“Many gas stations offer discounts for cash payments,” Rice notes.

Gas stations often list higher prices for card payments to offset transaction fees imposed by banks and card companies. The difference can sometimes reach up to 40 cents per gallon.

“Paying cash for fuel helps you take advantage of these discounts,” confirms Rice.

Additionally, William Bevins, CFP, a certified financial planner based in Franklin, Tennessee, highlights another reason to pay cash at the pump—avoiding fraud.

“Criminals have used skimming devices at gas stations to steal credit card information without customers realizing it,” Bevins warns.

By keeping these five scenarios in mind, you can avoid unnecessary fees, delays, and even potential fraud, all while sticking to your budget more effectively.