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Peace of mind isn't worth that much to me, especially when it adds up to so much. These days the CC companies are pretty good at stopping unauthorized charges due to the algorithms they are running. The hassle of an unauthorized charge is like 3 minutes on the phone and waiting 3 days for a new card.
I paid my wife's tuition on a CC because they offered no discount for paying cash. 2% of $10k is $200... four times per year. An extra $800 a year is peace of mind to me.
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