Paying with cash seems like a thing of the past in the United States, especially given the number of bank and store cards available, as well as the benefits they offer. However, there are certain expenses where using cash can help you save, avoid surcharges, and have greater control over your finances.

The reality is that paying with cash has good, bad, and even some hidden benefits, but in many cases, paying by card involves fees that outweigh any advantages.

7 Things You Should Always Pay For With Cash In The U.S.

1. College Tuition

Around 85% of universities in the United States accept credit cards for tuition payments, but they almost always apply a surcharge of between 2% and 3%. Although it may seem low, on a $10,000 tuition, the extra charge can be around $250.

That amount negates any benefit of cards that only give 2% cash back, so paying with cash, check, or direct transfer is usually the most cost-effective option.

2. Government Offices

Many government office transactions allow payment by card, but with additional charges. This can occur when paying for services at local courts, civil registries, or even post offices.

Although some states limit these surcharges, government agencies are usually exempt from this prohibition. Using cash avoids overpaying for mandatory procedures.

3. Taxes with the IRS

Paying taxes by credit card can be costly. The IRS works with third-party processors that charge fees for each transaction. These fees range from fixed charges of more than $2 to percentages close to 2% of the total amount.

On large tax debts, these fees represent a considerable amount that can be avoided by paying with cash, check, or direct bank transfer. Apply the technique,Now that IRS tax season is about to begin.

4. Gasoline

Many gas stations have two prices: one for cash and a higher one for cards. This has been happening since Visa and Mastercard authorized businesses to pass the processing cost on to the customer.

Although the difference per gallon may seem minimal, over time the savings from paying in cash add up, especially if you fill up frequently.

Read more: Gasoline could be at its lowest price this year since 2020

5. Medical appointments and health services

More and more doctors, dentists, and clinics are applying surcharges for card payments, which can reach up to 4%. These charges are often presented as a “cash discount.”

In medical services, where costs are already high, paying in cash helps reduce the final amount and avoid unnecessary additional charges.

6. Small Businesses and Local Shops

Many small businesses pass on the cost of processing card payments to the customer. By paying in cash, you not only avoid this surcharge, but in some cases, you get a better price or preferential treatment.

In addition, cash helps support local businesses that operate on tight margins.

7. Home Repairs and Services

Plumbers, electricians, independent mechanics, and other service providers often offer lower prices if you pay in cash. This is because they avoid bank fees and additional administrative processes.

In some cases, the savings can be significant compared to paying by card.

Personal finance specialists recommend having a cash fund available at home, regardless of income level, to deal with unexpected expenses when electronic systems are unavailable.