Why is it worse for you to buy a Powerball or Mega Millions ticket with a credit card?
While it might be tempting to take a shot at the massive jackpots on offer purchasing a ticket with your credit card it could cost you a pretty penny.
Powerball tweaked how the multi-state lottery worked in 2015 to boost the potential for ever larger jackpots and draw more players to the game. The tactic worked and a few years later Mega Millions did the same. Now there are better chances of winning small prizes but the odds of winning the jackpot are astronomical.
The past couple of years have seen some eye-popping prizes. The largest ever at $2.04 billion was won in November 2022 by one lucky Californian, Edwin Castro. The Golden State seems to be becoming the Golden Ticket State with the second largest Powerball jackpot, $1.76 billion, landing there this month.
While you might be tempted to pull out your credit card to purchase a lottery ticket if you’re short on cash, you may regret the act later. Not only are the odds serious not in your favor but your credit card company will likely charge you a fee beyond the ticket price.
Why is it worse for you to buy a Powerball or Mega Millions ticket with a credit card?
Even if you are in a state that allows you to buy lottery tickets with a credit card, some states only allow you to play with cash, it will most likely end up costing you extra
Credit card issuers typically treat lottery ticket purchases as a cash advance transaction. These types of transactions generally come with a fee, a higher APR than other purchases and there is no grace period so interest will begin accruing right away. No to mention you don’t get any rewards, lest you won the jackpot but don’t hold your breath.
The same goes for other cash-equivalent transactions, any transaction that could easily converted into cash, including cryptocurrency, gambling and money transfers.
The minimum cash advance fee will likely be more than the $2 ticket price for the Powerball and Mega Millions lotteries. Depending on how many lottery tickets you buy, you may offset that slightly, but you might still be charged a percentage, usually between 3% and 5%.