December 6, 2021|Paypal

by Eric Lipkind

Credit cards are the easiest way to earn miles and points.  Most people think of using credit cards for everyday purchases like groceries and gas, but there are several other categories of spending that you may not realize accept credit cards.

College

Paying for college can be a tremendous burden, however, you may be able to pay by credit card and get lots of points.  My daughter’s school accepts credit cards, but with a 2.95% fee.  I could pay that bill with Plastiq at a 2.85% fee.   Most times, unless there is a promotion on the credit card, this is not worth it.  However, my son’s school accepts credit cards with no fees.   Where this really pays off is paying with Prepaid Mastercards, which come with no fee.   Staples regularly sells $200 Mastercards for no fee.   I  stock up on these when the sale takes place.  I use my Chase Ink Business Cash card which gives 5X Ultimate Rewards points on office supply store purchases.   So for every $1,000 I pay the college, I get 5,000 Ultimate Rewards points.  It almost makes me love paying the college bill.   Well, not really….

Insurance

Some insurance companies accept credit cards for payments, some with processing fees and some without.  It is worth asking your insurance company if they accept credit cards. This includes homeowners, auto, umbrella, vision, dental, medical and pet insurance policies.  If you own a business, remember you may be able to charge business insurance premiums to credit cards as well.

Out-of-Network Medical, Dental, Vision, and Pet Insurance charges

If you go to out-of-network doctors (including vision and dental) or even if you have pet insurance, many providers charge you upfront (via credit card) and then allow you to get reimbursed from the insurance company directly.   These are the easiest free miles.  

Car leases

Interestingly, you can pay off debt with more debt by charging your car lease payments to a credit card.   On my two car leases, in order to use a credit card, you need to call in each month and provide the credit card number.   Each lease has different credit card processing fees, but they are reasonable — $3.95 and $4.00.   The value I get in miles by charging the payments outweigh the fees charged.

Utilities –  electric, water, gas, telephone, internet, cable, and cellular phone

Most cellular phone providers and cable/internet/cable providers accept credit card payments for no fees.  Some cards will even give you 5X points for these charges (i.e. Chase Ink Business Cash)  However, many electric companies, gas, and water companies also accept debit and credit cards.   I have found credit card fees to be high, but debit card fees are reasonable (around $2.95).   By linking credit cards to PayPal Key, you can charge these charges to your PayPal Key number and they register as a debit card purchase, incurring the lower fee, but charge your linked credit card.

Mortgages

You can pay your mortgage with a credit card by using Plastiq.  However, there is a 2.85% processing fee.  If you have a sign-up bonus minimum spend to meet, this could be worth paying the fee.

Taxes – property, estimated payments, business

You can pay many taxes online.  If you need to make estimated Federal Tax payments, the least expensive processor is PayUSATax.com with a 1.96% processing fee.   If you have cards that provide at least a 2% return, or need to meet a sign-up bonus minimum spend, this is a great way to get many points.   Many state taxing authorities accept credit cards as well.  Many towns allow you to pay property taxes via credit card, but I have found the fees to be high (around 2.75%).   If you own a business, business taxes can be paid online too for both Federal and State taxes.

Home Maintenance Services

I have found that most home maintenance services accept credit cards with no credit card fees.   I have paid plumbers, electricians, lawn sprinkler service, and lawn care companies via credit card.

What other types of charges do you make that accept credit cards?