Have you noticed that many businesses are now passing credit card fees onto the customer? In NYC, this is usually a 4% surcharge added on top of your purchase. Here are Russ’s thoughts on when it’s worth paying the surcharge and when cash is better.
You can watch this video and others on the Voice Wealth Management YouTube channel.
Transcript:
Hey everybody, this is Russell Rivera Voice Wealth Management back with another instant blog. And so I wanted to bring up something that I thought might be of some interest to people who are specifically living in New York, maybe New York City. But you know, it started in mass about a year ago it was, and now it is much, much more prevalent. So there is a, if you're buying stuff, from stores these days, more and more of them are charging, what is a legally allowed 4% surcharge for using a credit card or a debit card. So the importance of cash, for your own personal spending is even that much more important now, with the prices of everything going up so fast because of inflation, adding another 4% to your expenses, simply for using the credit card just doesn't make a lot of sense. Right? Keep that money in your pocket, don't want to go to someone else. And the truth is that right?
Well, while that's going on, like sometimes you don't have a choice, right? For me, I always use a credit card for gasoline, not necessarily because of convenience, but also for record-keeping. So it's worth it. For me. That's one time when I always use a credit card. But I love using cash. And if somebody's going to charge me 4% More for using the credit card, which I'm, too you know, I'm fortunate enough that I could pay cash for all my stuff, I don't have the budgeting or need to stretch it out. Why wouldn't we do it? Why wouldn't you do it to save the 4% it's automatic, it's easy.
So use of cash these days, at least in New York City, and knows where you might be if this is a nation can save you a bunch of money. And at the same time, be very careful because some of these places don't tell you they're charging you 4% Don't post it and then try to push you to use a credit card. Because using cash is not free to them. They still have to have somebody count it. So it's kind of a wash in their costs. Not that I can tell you exactly. But it's probably a kind of a wash in their costs, whether they use a credit card, or you use cash, but they charge you an extra 4% for the credit card because they can get away with it. So be aware of it. Try to use cash with cash, where possible, keep the money in your pocket and not someone else's. Thanks. This is Russ Rivera from Boyce wealth management. And we'll see you next time.
Russell D. Rivera, CFA, CFP® is the Founder and President of Voice Wealth Management (Voice) in New York, NY. He also likes to think of himself as a Personal CFO and Financial “Therapist” for entrepreneurs, young professionals, and their families. He helps clients make prudent financial decisions regarding spending, saving, investing, and planning while giving a voice to the individual client's financial priorities and experiences.