@Anonymous wrote:Hi all,
Would the above be advisable?
Monthly daycare expenses for my 2 children will come out to about $1500 starting in October. The problem is, the daycare will charge a 4% surcharge for credit card processing. Would it be worth paying the $60/month processing for these yummy 1500 MR points?
These guys make it seem like its a good idea, but I don't own those cards: https://thepointsguy.com/guides/best-credit-cards-for-daycare-expenses/
P.S. Daycare expenses are using pre-tax dollars the first $5k via Dependent Care FSA, per year.
Thanks!
No. No way that any rewards will outweigh a 4% surcharge.
@randomguy1 wrote:Perhaps you can use a cashback debit card such as Discover's for some additional revenue if you feel like opening a new bank account. You can get 1% back a month if they don't charge a surcharge.
OP said they charge a 4% surcharge!
@randomguy1 wrote:
@SouthJamaica wrote:
@randomguy1 wrote:Perhaps you can use a cashback debit card such as Discover's for some additional revenue if you feel like opening a new bank account. You can get 1% back a month if they don't charge a surcharge.
OP said they charge a 4% surcharge!
Why the red and exclamation mark? I saw that and read that. I have seen some places surcharge a credit card and NOT a debit card. They are subject to different fees.
For example:
My electricity bill charges 3% on any credit cards vs no charges on a debit card.
Here's a bit of reading for you:
https://www.merchantmaverick.com/credit-card-surcharges/
Here's more data from the IRS that shows the fees are NOT nearly the same:
https://www.irs.gov/payments/pay-taxes-by-credit-or-debit-card
I have never seen that. Every place I have seen that charges a "convenience fee" charges it for debit and credit cards alike.
4% is a very steep fee! I'm no stranger to paying for daycare and school tuition with credit cards, but either there was no fee or it was more in the 2.x% range, where it was at least a break-even proposition. Paying the fees only makes sense if the rewards outweigh the cost, or under other circumstances like where you needed just a little more spend to hit a signup bonus that you otherwise would not have had (again the rewards outweigh the cost), or needed to hit an annual spending amount on a particular card and the fee is worth it.
If you're unable to pay by check, I would consider an alternative like Plastiq if the fees are that much. It would be unusual to get at least 4 cents of value per MR point, buit if there's a particular transfer partner where you know that you can get that or more, go for it!
