5 Reasons to Always Carry Cash — Even if You Love Earning Credit Card Points

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Sometimes cash is still king. 

You can earn valuable credit card points by using rewards credit cards. But as much as I love earning credit card points, I know that I won’t be able to swipe my credit card every time I shop or visit a restaurant. If you usually pay for your purchases using credit cards, you may still want to keep extra cash in your wallet. Here are a few reasons why.

1. Avoid unnecessary ATM fees

While ATMs are convenient, they’re not always free to use. If you need cash and withdraw money from an ATM that is not in your bank’s network, you should expect to pay a fee — unless, of course, your bank reimburses ATM fees, as some banks do. Checking account fees (like out-of-network ATM fees) can add up faster than you realize. By keeping cash in your wallet at all times, you can waste less of your hard-earned money.

2. Some businesses only accept cash payments

While many establishments accept debit credit and credit card payments, that isn’t always the case. Some businesses prefer to accept only cash payments to save money on merchant fees. If you stumble upon a cash-only business, you’ll be forced to find a nearby ATM or go elsewhere. But if you keep cash in your wallet, you’ll be prepared.

3. Easily split the bill with friends

If you’re dining out with a friend and want to split the cost of the bill, it can be easy to do that when you have cash in your wallet. Payments apps provide another way to split expenses with friends and family, but not everyone uses the same payment apps — so that may not always be a convenient option. If you have cash, you can split the bill quickly without using apps.

4. Avoid paying credit card convenience fees

When businesses accept credit card payments, they pay credit card processing fees. Some businesses pass credit card processing fees on to the customer to reduce operating costs. If you visit a business that charges a credit card convenience fee, you’ll be paying more money than necessary for your purchase. But you can avoid this fee if you have cash on hand.

5. You can leave cash tips

If you have cash in your wallet, you can leave cash tips when dining out or when you encounter a situation where you want to tip an employee. Cash is a win for tipped employees because they can immediately walk away with cash when they finish their shifts. Some tipped employees wait a while to receive credit card tip payments. And who doesn’t love to be paid in cash?

Don’t give up on credit card points

If you like earning credit card points, use rewards credit cards when you can. But it’s not a bad idea to stash some cash in your wallet so you’re prepared to use cash when necessary. It may be easier to pay for some purchases with cash, and in some cases, you may save money. Check out these personal finance resources for additional money tips.

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