Are credit cards rewards worth it? What about the percent fee?
You might not be earning enough value if you are charged transaction fees. Usually credit card rewards are worth 1 or 2 percent of the amount charged. Most businesses charge a 2 percent fee, and if they do not want to pay the fee that card issuers charge them they may pass this fee on to the cardholder. This is most notorious at online stores, and the federal government employs this very same policy for the public who use credit cards to pay tax bills. Check with each merchant prior to placing a charge onto your credit card.
Most merchants do not pass these fees on to their customers, so card users; if careful, can benefit from reward programs. Some cards offer extra reward points based on the balance credit card user’s account. Beware, this is never a good deal as interest charges are sure to cost you more than the points are worth. You should be careful of any annual membership fees normally charged by credit card companies that offer points. Otherwise you would have to use the card more often to get enough points to benefit paying the fee.
You can enjoy maximum credit card rewards with minimal fees if you pay off card charges in full each month.
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