Eight ways to save when paying

Get the best consumer protections by paying with a credit card

But keep your balances and finance charges in check by making payment in full each month. If you regularly carry a balance, use the lowest-rate card you can find for purchases. Consider taking advantage of low or zero percent balance-transfer offers that some card issuers have promoted recently, and pay off the balance before the rate goes up after the introductory period.

Never pay a fee to pay by debit

Such fees aren’t common, but some merchants impose them. Refuse, cancel the sale, and report the merchant to your debit-card issuer.

Opt out of costly debit overdraft protection

Instead, link your checking to your savings account and tell the bank to draw from there if your checking balance runs short. Fees for those transfers are typically only $5 to $10, compared with an average of $35 per debit card overdraft or bounced check. Sign up for e-mail or text alerts that will warn you when your balances fall below a certain point.

Avoid ATM fees

If you need pocket cash, use your own bank’s fee-free ATMs or take advantage of the no-fee cash-back feature commonly offered by grocery, drugstore, and other retail chains when you pay with a debit card.

Pay bills electronically

You can save time, postage, and check-printing fees by using the electronic bill-pay feature that’s part of the online banking now offered by most financial institutions, including Bank of America, Chase, Citibank, and Wells Fargo. It’s usually included at no cost in the price of whatever you pay, if anything, for checking. Use it to ensure that payments reach credit-card issuers before the monthly due dates to avoid late-payment or expedited-payment fees.

Pass up prepaid debit cards

They typically come with an array of fees for card activation, using an ATM, adding money to the balance, checking the balance, monthly service, and for each purchase transaction. A recent study by Consumers Union found that using a checking account for your payment needs was typically cheaper.

Use your bank’s P2P

These services let you electronically pay or transfer money from checking to your kids at college, friends, and small businesses and service providers who don’t accept credit cards for payment by using just an e-mail address or cell phone number. It’s part of online banking at many banks and there’s no fee, unlike Obopay’s 25 cents to 50 cents pertransaction fees.

Paying with cash?

Ask for a discount, especially when buying big-ticket items, since the merchant won’t owe transaction fees on your purchase.