Originally Posted by UVU Wolverine

I guess my situation is a sort of misnomer as one water utility charges a flat rate whether its a CC charge or a deposit from bank which baffles me, but the 5% makes up the difference in that case. One of the electric bills of my mine also charges a 2.5% fee when paying with a credit card, but it still nets me 2.5% cash back after the fee so I still see it as a win.

I think I would average around 3% back when credit card fees are included in the equation, but I'm still ahead in my book considering I have to pay these bills regardless. The cash back I earn just goes to investments anyways so in a roundabout way it's an excuse to save a few more dollar a month.

I'm somewhat lucky in that most of the utilities I pay do accept a CC payment, albeit with a fee for some. That kind of payment can be a huge part of someone's budget, so the 5% back even with fees can earn someone decent returns on something they'd have to pay anyways (at least in my mind). I'm all for the Dave Ramsey approach in most situations, but he's never come around to the benefits of credit cards if used appropriately.