Paying your Xcel Energy bill with a credit card is a convenient option that allows you to earn rewards on your payments. However, there are some important factors to consider before choosing this payment method. In this comprehensive guide, we’ll walk through everything you need to know about paying your Xcel Energy bill with a credit card.
Overview of Paying Your Xcel Bill With a Credit Card
Xcel Energy allows customers to pay their electricity, natural gas, and other bills by credit card either online, over the phone, or by mailing in a payment coupon Accepted credit cards include Visa, Mastercard, American Express, and Discover cards.
Paying by credit card means you can rack up rewards points and miles on your payments. It also gives you more time to pay if you pay your credit card bill later than your Xcel due date. However, credit card processing fees may apply, so your bill amount will be slightly higher versus other payment options.
We’ll go over the steps for paying online, along with some of the pros and cons, processing fees, and best practices for getting the most out of your rewards.
Step-by-Step Guide to Paying Your Xcel Bill Online
Paying your Xcel Energy bill with a credit card online is quick and easy. Follow these steps:
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Go to Xcel Energy’s website and log into your account.
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Under “Billing & Payment,” select “Pay My Bill.”
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Enter your credit card information including card number, expiration date, and CVV security code.
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Enter the payment amount up to your current account balance. Note there is a $10 minimum for credit card payments.
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Review the payment details and service fee amount. Click “Continue” to process the payment.
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Confirm the payment and receive a confirmation number for your records.
The online payment will immediately post to your account. You can check your account balance and payment history at any time by logging in.
Key Benefits of Paying Your Bill With a Credit Card
Before you pay your Xcel Energy bill with a credit card, here are some pros to keep in mind:
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Earn rewards: You can potentially earn 1-5% back in credit card rewards points or miles on your electricity and gas payments. Over time, this can add up to major savings.
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Save money: If you pay your credit card bill on time every month, you can build good credit by paying your bills on time.
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Pay later: Paying by credit card gives you until your next credit card due date to pay the balance. This gives you an extra 20-25 days or so to pay versus paying Xcel directly.
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Convenience: Paying online is quick and easy any time of day without needing cash or checks. You can also set up autopay to have payments processed automatically each month.
Potential Drawbacks to Be Aware Of
While paying by card has its perks, there are some downsides to note as well:
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Credit card fees: Xcel Energy charges a 2.95% processing fee for credit card payments. This will increase your bill amount slightly.
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Credit limits: Your credit limit may prevent you from paying very large bills all at once. You’ll need to plan ahead.
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Late fees: You must pay your credit card bill on time to avoid costly late payment fees and interest charges.
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Credit score impact: Making late payments on your credit card could negatively impact your credit score over time.
Understanding Xcel Energy Credit Card Fees
When you pay your Xcel Energy bill by credit card, you’ll notice a service fee added to your payment amount. Here’s what you need to know about the fees:
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The processing fee is 2.95% of the payment amount.
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There is a minimum fee of $1.95 per transaction.
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For example, if your Xcel bill is $100, you’ll pay $103.95 ($100 bill + $2.95 fee + $0.95 tax).
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The fee amount is clearly disclosed during the online payment process before you complete the transaction.
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Fees vary by state based on local taxes. The fees listed here apply to Colorado customers.
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Debit card payments are fee-free. But you won’t earn rewards.
The processing fees help cover the costs for Xcel Energy to accept and process credit card transactions. While the percentage seems small, it can add up, especially on larger bills. You’ll need to determine if the rewards outweigh the fees based on your spending habits.
Many other utility companies charge similar credit card processing fees. The fees ensure customers who pay with cash or checks aren’t subsidizing the costs for reward-earning credit card payers.
Tips for Maximizing Credit Card Rewards
If you pay your Xcel Energy bill with rewards credit cards strategically, you can maximize the points or miles earned over time. Here are some tips:
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Use cards that offer bonus rewards for utility payments like the Wells Fargo Cash Wise Visa which offers 1.5% cash rewards for utilities.
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Take advantage of new cardmember signup bonuses by rotating cards annually. Just be sure to pay off balances each month.
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Put your monthly Xcel autopay payments on a card with the highest rewards rate. Set a calendar reminder to switch cards periodically.
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Pay large, one-time payments with a new card that has a big welcome offer and 12+ month 0% intro APR period to avoid interest.
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Consider cards that allow you to earn fixed point rewards per dollar spent versus only a percentage rewards rate.
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Compare the value of points/miles earned versus the 2.95% fee to ensure you’re coming out ahead.
Can You Pay an Xcel Deposit With a Credit Card?
If Xcel Energy requires a security deposit to start new service, you may be wondering if you can pay that initial deposit with a credit card. Unfortunately, Xcel Energy does not accept credit cards for deposit payments. Initial security deposits can only be paid by cash, check, money order, or debit cards.
The good news is that after you pay your initial deposit with another method, you can make ongoing monthly bill payments with a rewards credit card. Just be sure to pay off the balance in full each month.
FAQs About Paying Your Xcel Bill With a Credit Card
Here are answers to some frequently asked questions about paying Xcel Energy bills with credit cards:
Can I set up autopay with a credit card?
Yes, you can enroll in autopay through your online Xcel Energy account to have your monthly bill automatically charged to your credit card.
When will my payment post if I pay online?
Online credit card payments post to your account immediately after the transaction is completed.
Where can I see my credit card payment history?
You can log into your account and click on “Payment History” to see all your past credit card and other payments.
Can I dispute a payment if I believe it’s incorrect?
Yes – if you believe you’ve been incorrectly charged, you can dispute the charge with your credit card company according to their dispute process. Notify Xcel Energy as well.
Will paying by credit card impact my Xcel Energy rewards?
No, paying your bill by credit card will not affect rewards you earn through Xcel Energy’s home and business rebate programs.
The Bottom Line
Paying your monthly Xcel Energy utility bill with a rewards credit card is a smart idea to earn cash back or travel miles over time. Just be sure to pay off your credit card balance in full each month and watch out for processing fees. Weigh the rewards versus fees before choosing this payment method.
