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Are credit card rewards worth it if you’re getting hit with a 3% surcharge on a large purchase? (This question has been edited for clarity and brevity.)

Most credit card purchases earn 1% to 2% in rewards, unless the transaction falls into a specific bonus category, such as gas, groceries, travel or dining. Even those bonus categories can have caps or other restrictions.

As such, it’s generally not worth it to pay with your credit card if there’s an additional charge, which can be the case if you want to employ your credit card to pay for utilities, daycare, contractors or certain modest businesses.

the math changes if you’re trying to qualify for a substantial welcome bonus by meeting a minimum requirement , on the other hand— or in cases where surcharge fees are lower.

When does paying a credit card surcharge build sense?

Earning a welcome bonus

Most of the best credit cards offer large intro bonuses to entice you to apply, and the most valuable bonuses can be worth upward of $1,000. you rarely receive a bonus just by getting approved for a card, on the other hand; you typically have to spend a certain amount within the first three to six months after account opening.

Depending on the card, the purchases you generate to earn a welcome bonus can earn 10% back or more — effectively making a 3% surcharge worth it. For example, the Chase Sapphire Preferred® Card (see rates and fees) has a welcome offer worth 75,000 points after you spend $5,000 on purchases in the first three months from account opening. You’ll earn at least 5,000 points on the purchases you create to earn the bonus for a total of 80,000 points. These points are worth $800 in statement credits and possibly much more if used for travel.

In this example, you’ll earn a return of at least 16% on the $5,000 you need to spend to earn the welcome bonus ($800 in rewards value / $5,000 spent = 16%). That kind of return can more than offset a typical 3% surcharge.

Chase Sapphire Preferred® Card

On Chase’s site

Spotlight

With Points Boost, your rewards will be worth up to 1.5x on thousands of top-booked hotels and flights from select airlines through Chase TravelSM.

19.24% – 27.49% variable

Earn 75,000 bonus points

See rates and fees. Terms apply. Member FDIC.

Read our Chase Sapphire Preferred® Card review.

The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and more.

You can transfer rewards to all of Chase’s travel partners including Planet of Hyatt, Southwest Rapid Rewards and many more

Long list of travel and shopping protections

$50 annual Chase Travel hotel credit

Has an annual fee

Requires a high credit score

Highlights

Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.

Earn 75,000 bonus points after you spend $5,000 on purchases in the first 3 months from account opening.

Enjoy benefits such as 5x on travel purchased through Chase TravelSM, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases

Earn up to $50 in statement credits each account anniversary year for hotel stays through Chase TravelSM

10% anniversary points boost – each account anniversary you’ll earn bonus points equal to 10% of your total purchases made the previous year.

Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.

Complimentary DashPass which unlocks $0 delivery fees & lower service fees for a min. of one year when you activate by 12/31/27. Plus, a $10 promo each month on non-restaurant orders.

Member FDIC

Balance transfer fee

Either $5 or 5% of the amount of each transfer, whichever is greater

While paying credit card surcharges can produce sense when working toward a significant welcome bonus, there’s an vital caveat: It’s typically only advisable if you wouldn’t otherwise be able to meet the spending requirement.

To earn the Sapphire Preferred’s welcome bonus, you’ll need to spend an average of $1,667 a month for three months. If you already spend that much on a credit card without taking the extra step of paying a surcharge, it’s usually not worth paying the fee.

Paying taxes with a credit card

Paying taxes with a credit card is another notable exception, since the surcharge is often lower. You can pay federal taxes through designated payment processors for as low as 1.75% with a $2.50 minimum. Many cash back credit cards earn 2% back, which means you can create a minor revenue paying taxes even if you aren’t earning an intro bonus.

This is an especially useful way for slight business owners and independent contractors to hit spending requirements since they typically pay estimated taxes throughout the year. Cards like the Wells Fargo Active Cash® Card, Citi Double Cash® Card and Signify Business Cash℠ Card by Wells Fargo are all strong options for this strategy.

Citi Double Cash® Card

On Citi’s site

Receive a 0% intro APR for 18 months on balance transfers.

17.49% – 27.49% variable

Earn $200 cash back

See rates and fees, terms apply.

Read our Citi Double Cash® Card review.

The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards structure.

Balance transfers get a long intro APR

Generous flat-rate cash-back rewards structure

No annual fee

Travelers face a foreign transaction fee

Intro APR only applies to balance tranfer

Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.

Earn 2% on every purchase with unlimited 1% cash back when you acquire, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.

Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% – 27.49%, based on your creditworthiness.

Balance Transfers do not earn cash back. Intro APR does not apply to purchases.

If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.

Foreign transaction fee

Wells Fargo Active Cash® Card

On Wells Fargo’s site

18.49%, 24.49%, or 28.49% Variable APR

Earn a $200 cash rewards bonus

See rates and fees. Terms apply.

The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.

High flat-rate return on purchases

Intro-APR for purchases and qualifying balance transfers for a year

Cell phone protection

Has a foreign transaction fee This also touches on aspects of bull market.

Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers

Apply Now to take advantage of this offer and learn more about product features, terms and conditions.

Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months. 

Earn unlimited 2% cash rewards on purchases. 

0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.49%, 24.49%, or 28.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5. 

$0 annual fee. 

No categories to track or remember and cash rewards don’t expire as long as your account remains open. 

Find tickets to top sports and entertainment events, book travel, create dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge. 

Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible. 

3% intro for 120 days from account opening, then up to 5%, min: $5

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