What credit cards do you use?

That cash you are getting back is built in, pre-paid, and I personally would not ever rely on CC protection as a reason to use a CC, but I do agree with you about carrying a CC balance. I used to agree that cards can be a tool, but not any more. This is not to be confused with a debit card which I find to be a much more useful tool. Since the banking melt-down CCs are looked at by the banks as a way to load up fees, and they have done a great job of it before the new regulations kick in to stop them. Next up on the chopping block will be free checking, and probably interest-bearing checking, as these are not funds the banks can count on as part of their lending reserves.

What do you mean by "built in" and "prepaid". My card costs me nothing while it gives me back about $1000 a year.

Debit card is not useful to me since it doesn't offer same protection credit card does (fraudulent use, identity theft etc.). I'm not afraid to use credit card over internet but I would not use debit card.

Any dispute, I might have with a store that sold me defective item or refused return is arbitrated by credit card company that applies back-charges first and then store has to prove the right to get my money. No such luck with debit card (same as cash), cash, check etc.

What?!?! You think they are really giving you free money? ;-) Most likely they are charging you in fees and then giving a small rebate to make you feel good about spending money you don't have. :-)

I'm not saying the debit card is a replacement for a cc, or vice-versa. All I'm saying is keep watching your card statements for new fees. If it works for you, and I can certainly understand from the POV of running a business, then that's great. People have been ripped off on both sided of cc transactions, so I myself don't place too much credence in the protection offered and do my own due diligence.

I've had various AMEX cards for at least 20 years. First a Gold, until I got tired of the $100 yearly fee. Then a (free) Blue card. I got points on both that I cashed in on Home Depot gift cards; I must have gotten at least $1200 over the years in both Home Depot, & Crate & Barrel, gift cards. Obviously, this is much better with a (free) Blue card.

There's also an AMEX card that pays 2% cash back, if you have a specific brokerage or IRA account.

Recently I've had a Visa card with 2% cash back. Like getting a 2% discount on everything you buy. There's also an Amazon Visa that gives triple points on everything you buy on Amazon, great for Amazon junkies.

From a few of the comments here tho, I think I might go back to using Amex for some expensive purchases.....

"Most likely they are charging you in fees and then giving a small rebate to make you feel good about spending money you don't have"

What do you mean by "most likely"? I know EXACTLY that they don't charge me a penny for many years while I'm getting almost $1k back every year. I addition I'm getting protection and a lot of other benefits. It would be silly for me to use debit card or cash instead.