Cash vs. Credit Card Onboard Spending Account?

[johnjen]

What are the pros/cons between the two? And, if I do a cash account, can I just apply cash at the desk to that account? We have plenty of credits with our BOA RCL card....I just want to know if I can place additional cash in there if needed. Thanks!

[Ashland]

Yes...you can add cash to your SeaPass acct onboard as needed. If you go over your cash limit they will call you to Guest Services.

[Sunshine3601]

We always use our credit card but one of our last cruises we had some casino winnings so went to Guest services and gave cash to pay off our bill. 

[brillohead]

I don't understand why someone wouldn't want to use a credit card instead of carrying excess cash?

Especially if you use a credit card that has a cash-back or points/rewards system -- you're better off charging to the credit card and then paying off the balance the next month.  

Bonus -- you never have to visit Guest Services (and the line is always long on the last night).  

[Merion_Mom]

19 minutes ago, brillohead said:

I don't understand why someone wouldn't want to use a credit card instead of carrying excess cash?

Especially if you use a credit card that has a cash-back or points/rewards system -- you're better off charging to the credit card and then paying off the balance the next month.  

 

 

That's my mantra! Points Points Points!

[Sunshine3601]

8 hours ago, brillohead said:

I don't understand why someone wouldn't want to use a credit card instead of carrying excess cash?

Especially if you use a credit card that has a cash-back or points/rewards system -- you're better off charging to the credit card and then paying off the balance the next month.  

Bonus -- you never have to visit Guest Services (and the line is always long on the last night).  

Oh believe me, I'm all about getting credit card points.   My amex platty currently has about 200,000 points that I will use for future travel.    It was only one recent cruise where we paid off our couple hundred bill the last day, no biggy.   

 

[rudeney]

I agree with the advice to use a credit card (especially one with a good points program), but I also understand there are some people who prefer cash.  I have several good friends who use the Dave Ramsey system and only pay with cash.  They have put themselves into a great financial position with only buying things they can afford without credit - included houses, cars and vacations. 

 

For people who don't qualify for a credit card with a high high enough to rent cars, cover onboard cruise costs, etc., then maybe they should reconsider whether spending money on a cruise is in their best financial interest.  Personally, I use AMEX.  It was the first card I applied for over 40 years ago and they have treated me well.  It has a relatively high annual fee, and the awards program is not the best, but I like not playing "games" trying to avoid interest and fees.

[NorthStarStateCruiser]

A pro of using a card versus cash for your  is that you have a record of what was truly paid by you.  Disputes are handled much easier.

 

FWIW, the BOA Royal Caribbean credit card is a very poor card when it comes to accumulating points, even for purchases of Royal Caribbean cruises.  There are several no annual fee cards that are more generous with point accumulation.  I'd agree with the sentiment that if you don't have money in the bank to cover the purchase on a credit card, you shouldn't do it.

[Tree_skier]

10 hours ago, brillohead said:

I don't understand why someone wouldn't want to use a credit card instead of carrying excess cash?

Especially if you use a credit card that has a cash-back or points/rewards system -- you're better off charging to the credit card and then paying off the balance the next month.  

Bonus -- you never have to visit Guest Services (and the line is always long on the last night).  

Exactly, I finally broke down and got the Royal Caribbean BOA visa.  Now I'll get double points for my on board spending 🙂

[NorthStarStateCruiser]

6 minutes ago, Tree_skier said:

Exactly, I finally broke down and got the Royal Caribbean BOA visa.  Now I'll get double points for my on board spending 🙂

🤦‍♂️ I just said that the Royal Caribbean BOA card has a poor point earning rate.

[Tree_skier]

24 minutes ago, rudeney said:

I agree with the advice to use a credit card (especially one with a good points program), but I also understand there are some people who prefer cash.  I have several good friends who use the Dave Ramsey system and only pay with cash.  They have put themselves into a great financial position with only buying things they can afford without credit - included houses, cars and vacations. 

 

For people who don't qualify for a credit card with a high high enough to rent cars, cover onboard cruise costs, etc., then maybe they should reconsider whether spending money on a cruise is in their best financial interest.  Personally, I use AMEX.  It was the first card I applied for over 40 years ago and they have treated me well.  It has a relatively high annual fee, and the awards program is not the best, but I like not playing "games" trying to avoid interest and fees.

I have followed Dave Ramsey's advice for years now with the exception of his no credit card prohibition.  His main objection is there are hidden costs to the points accumulated because it encourages unnecessary spending to accumulate points.  It's sound reasoning but I still like my points.  🙂 I've followed all of his other advice for years now and it has served us well.

[Tree_skier]

9 minutes ago, NorthStarStateCruiser said:

🤦‍♂️ I just said that the Royal Caribbean BOA card has a poor point earning rate.

I know, I have an AE that has good rewards that I am happy with also.  I wanted a Visa because there is the odd place that doesn't take AE and when spending of Royal the BOA version doubles up your points.

[johnjen]

10 hours ago, brillohead said:

I don't understand why someone wouldn't want to use a credit card instead of carrying excess cash?

Especially if you use a credit card that has a cash-back or points/rewards system -- you're better off charging to the credit card and then paying off the balance the next month.  

Bonus -- you never have to visit Guest Services (and the line is always long on the last night).  

There is a surcharge fee for credit accounts, apparently.

[johnjen]

22 minutes ago, Tree_skier said:

Exactly, I finally broke down and got the Royal Caribbean BOA visa.  Now I'll get double points for my on board spending 🙂

We do too. It's just that surcharge percentage fee they tack on I don't like!

[orville99]

7 minutes ago, Tree_skier said:

I have followed Dave Ramsey's advice for years now with the exception of his no credit card prohibition.  His main objection is there are hidden costs to the points accumulated because it encourages unnecessary spending to accumulate points.  It's sound reasoning but I still like my points.  🙂 I've followed all of his other advice for years now and it has served us well.

Have two credit cards, both Visa - one from Amazon (cash back) and one from RCL (points back). We use the Amazon card for everything, and haven't used the RCL card since we redeemed our last points for OBC. Haven't paid a penny of interest on either of them in more than 15 years, and don't intend to ever spend a penny of interest on either of them in the future. It isn't hard if you are financially literate and understand where your cash comes from and where it is going. The only cash we ever bring on board is for tips and for port stops. I've had the same $100 in my wallet for so long I'm not sure I can unfold the bills.

[rudeney]

10 minutes ago, Tree_skier said:

I have followed Dave Ramsey's advice for years now with the exception of his no credit card prohibition.  His main objection is there are hidden costs to the points accumulated because it encourages unnecessary spending to accumulate points.  It's sound reasoning but I still like my points.  🙂 I've followed all of his other advice for years now and it has served us well.

 

There's no way I could follow Dave Ramsey in terms of the cash envelopes.  I travel a lot and cash is not really good for that.  I have also run several businesses and also not very cash-friendly when paying for capital goods and even things like marketing.  Except for our mortgage and one car loan (both at interest rates well below our investment returns), we carry no other debt.  Well, we do some "X months same as cash" accounts, but never more than we could pay off if needed.  To me, the credit card points are just an extra perk.  I'd still use my AMEX card without them.  It's just very convenient.  And I have a record of almost every expenditure I make.

 

[Tree_skier]

5 minutes ago, rudeney said:

 

There's no way I could follow Dave Ramsey in terms of the cash envelopes.  I travel a lot and cash is not really good for that.  I have also run several businesses and also not very cash-friendly when paying for capital goods and even things like marketing.  Except for our mortgage and one car loan (both at interest rates well below our investment returns), we carry no other debt.  Well, we do some "X months same as cash" accounts, but never more than we could pay off if needed.  To me, the credit card points are just an extra perk.  I'd still use my AMEX card without them.  It's just very convenient.  And I have a record of almost every expenditure I make.

 

That is why I say I follow Dave Ramsay's advice sans credit card prohibition.  I travel extensively for work and it is much more difficult to travel on cash than a card.  

 

That being said, part of his objection is "vacation money" should be put on existing debt.  We have been completely debt free for 6 years.  My wife retired at 55 and I still add a couple thousand a month to my retirement portfolio each month.  Cruising and skiing all that goes with those are my only vices.  

[NorthStarStateCruiser]

17 minutes ago, rudeney said:

 

There's no way I could follow Dave Ramsey in terms of the cash envelopes.  I travel a lot and cash is not really good for that.  I have also run several businesses and also not very cash-friendly when paying for capital goods and even things like marketing.  Except for our mortgage and one car loan (both at interest rates well below our investment returns), we carry no other debt.  Well, we do some "X months same as cash" accounts, but never more than we could pay off if needed.  To me, the credit card points are just an extra perk.  I'd still use my AMEX card without them.  It's just very convenient.  And I have a record of almost every expenditure I make.

 

His advice now is to use cash or a debit card. The cash envelopes have been taken out of the program.

[rudeney]

OK, I did not realize the envelopes were no longer a part of his program. 

 

I do have a problem with using a debit card.  Although most banks have some fraud protection on debit cards, it's not like a credit card.  Because your money has already been drafted from the account, you may have to wait on the bank to decide to return it.  In the meantime, you don't have use of that money, so you may be unable to make payments on things like utility bills or a mortgage.  It could cause other scheduled drafts to reject, costing you "bounce" fees from those payees.  When you report fraud on a credit card, it's the bank's money and not yours that's in limbo until the issue is resolved.  I know some people, including me in the past, have a hard time managing their debt.   That is one reason I choose to use a traditional AMEX card.  As long as you decline/disable all their optional "pay over time" services, it must be paid in full each month.  

[not-enough-cruising]

12 hours ago, brillohead said:

I don't understand why someone wouldn't want to use a credit card instead of carrying excess cash?

Especially if you use a credit card that has a cash-back or points/rewards system -- you're better off charging to the credit card and then paying off the balance the next month.  

Bonus -- you never have to visit Guest Services (and the line is always long on the last night).  

A cash account eliminates the post cruise errant additional charges that seem to pop up way too often. 
 

Remember, if you have a cash account, when you use up the $500 credit Royal advances you, you can go down and lay it off with a credit card (get all the benefits) and start a new line of credit. It is impossible to have charges added to your folio post cruise with this system. 

[orville99]

2 hours ago, rudeney said:

I do have a problem with using a debit card

Us as well. I will use my debit card the next time I go into my wallet and break up that last $100 currently gathering dust. I will unfreeze it, withdraw another $100, and then freeze it again. It has been frozen for more than a year now. Maybe i will use it again in 2023.

 

We don’t use cash, or debit cards, and we have absolutely zero debt. Why change what ain’t broke.

[johnjen]

Can anyone confirm/deny if there's a surcharge on a credit card account? A couple of years back (pre-covid) they were charging one on each charge made (maybe my memory is fading). But the BOA card with the double points - that's enticing so I might just open a credit account.

[vjmatty]

15 hours ago, brillohead said:

I don't understand why someone wouldn't want to use a credit card instead of carrying excess cash?

Especially if you use a credit card that has a cash-back or points/rewards system -- you're better off charging to the credit card and then paying off the balance the next month.  

Bonus -- you never have to visit Guest Services (and the line is always long on the last night).  

In my case for an upcoming RC cruise, the onboard account will backed by my RC credit card, however I will have cash from unused OBC after getting off an earlier Princess cruise. Both sailings are in Europe so I can’t deposit the cash, and I don’t want to pay the exorbitant drink package prices of late on RC, so I’d rather have some extra OBC toward some pay as we go drinks. 

[Tree_skier]

3 hours ago, not-enough-cruising said:

A cash account eliminates the post cruise errant additional charges that seem to pop up way too often. 
 

Remember, if you have a cash account, when you use up the $500 credit Royal advances you, you can go down and lay it off with a credit card (get all the benefits) and start a new line of credit. It is impossible to have charges added to your folio post cruise with this system. 

I had thought about doing that but I always hate the line at GS.  So far I've been lucky and had no errant charges.  

[Tree_skier]

28 minutes ago, johnjen said:

Can anyone confirm/deny if there's a surcharge on a credit card account? A couple of years back (pre-covid) they were charging one on each charge made (maybe my memory is fading). But the BOA card with the double points - that's enticing so I might just open a credit account.

I have never been charged a surcharge on my account.