Pay Xcel Energy Bill With Credit Card

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 a few things you should know before using a credit card to pay your Xcel Energy bill. In this article I’ll explain the process of paying your Xcel Energy bill with a credit card the fees involved, and some tips to make the most of credit card rewards.

Overview of Paying Xcel Energy Bill with a Credit Card

Xcel Energy allows customers to pay their energy bill online or by phone using a credit or debit card. Accepted cards include Visa, Mastercard American Express and Discover. One advantage of paying with a credit card is the ability to earn rewards such as cash back, points, or miles on your payments. This can help offset some of the cost of your energy bill.

To pay your Xcel Energy bill by credit card online you’ll need to login to your account on the Xcel Energy website. Under the “Billing & Payment” section choose “Pay My Bill”. On the payment page, select “Credit/Debit Card” as the payment method and enter your card information. The payment will be processed immediately.

You can also pay over the phone by calling Xcel Energy and providing your credit card information to the customer service representative. This allows you to pay your bill without logging into your account online.

Credit Card Fees for Paying Xcel Energy Bill

While paying with a credit card comes with the advantage of earning rewards, there are some fees to be aware of. Xcel Energy charges a convenience fee of $2.95 for each credit card payment. This fee helps cover the processing costs and is in addition to your actual energy bill amount.

Some credit cards also treat utility bill payments as cash advances and charge cash advance fees. This is more common with business credit cards but something to be aware of. Cash advance fees are usually around 3-5% of the transaction amount.

To avoid cash advance fees, you can use a credit card that treats utility payments as regular purchases. Personal credit cards from major issuers like Visa, Mastercard, American Express and Discover should not charge cash advance fees.

Overall, while you do need to account for about $3 in convenience fees, paying your Xcel Energy bill with a credit card can still be worthwhile if you earn rewards at a higher rate.

Tips for Maximizing Credit Card Rewards

Here are some tips to consider if you want to maximize rewards when paying your Xcel Energy bill with a credit card:

• Use a rewards credit card: Make sure to use a credit card that offers robust rewards on all purchases, not just specific bonus categories. A flat 1-2% cash back rate or 2x points per $1 can add up.

• Take advantage of signup bonuses: Opening a new rewards credit card can earn you a large signup bonus if you meet the spending requirements within a certain timeframe. This bonus alone can offset fees.

• Pay early to earn rewards faster: Don’t wait until your due date to pay with a credit card. Paying early means you earn the rewards faster which you can then redeem for statement credits or other perks.

• Consider rotating bonus categories: Some cards offer 5% or more cashback on a rotating set of bonus spending categories each quarter. If a quarterly bonus aligns with paying your energy bill, take advantage of it.

• Use the right card for your spending: Factor in other spending and how you redeem rewards. A travel card can help your Xcel payment go towards a free flight while a cashback card may be better if you want statement credits.

• Pay multiple bills together: If you can pay your Xcel Energy bill along with other bills like internet or cell phone together on one card, you can maximize rewards earned from your total spending.

• Don’t carry a balance: To avoid interest charges, always pay your credit card bill in full each month when paying recurring bills. The fees and interest can negate any rewards earned.

Is Paying Your Xcel Bill by Credit Card Worth It?

At the end of the day, whether or not it makes sense to use a credit card to pay your Xcel Energy bill depends on your spending habits, credit card rewards program, and how you value the convenience.

The $2.95 convenience fee is relatively small compared to the amount of most household energy bills. Even a 1-2% cashback or points rate can offset this fee and provide some overall rewards value. Signup bonuses and rotating 5% categories can push the value proposition further.

However, if you do not pay off the full balance and accrue interest charges, carry a balance, or have a credit card with no rewards, then the fees likely make it not worthwhile. Make sure to do the math and determine if the rewards outweigh the costs based on your personal situation.

Many customers appreciate the convenience of paying bills with a credit card and ability to track expenses. As long as you choose the right card, avoid interest, and pay on time, using credit card rewards towards an Xcel Energy bill payment can be a rewarding experience.

Paying your Xcel Energy utility bill through a credit or debit card is a simple and convenient option. While you do need to factor in about a $3 convenience fee, the ability to earn credit card rewards and benefits may make it worthwhile. Choosing a rewards credit card with a generous earnings rate on all purchases is key to maximizing value. Just be sure to pay off your balance in full each month and take advantage of signup bonuses, rotating categories and other reward-boosting techniques. As long as you understand the fees and pick the right card for your spending habits, paying your Xcel Energy bill by credit card can be an easy way to earn rewards on this regular expense.