PG&E raised its credit card processing fees in 2024

Pacific Gas and Electric Company (PG&E) began charging customers a processing fee when they pay their bill with a credit card. The fee is a percentage of your payment amount — currently around 2.5% — and applies whether you pay online, by phone, or through their automated system. This means a $100 payment by credit card now costs you $102.50 in total.

The fee does not explore if you pay by debit card, bank account transfer, or check. PG&E says the fee covers the cost of processing credit card transactions, which the company must pay to Visa, Mastercard, and American Express. Before this change, PG&E absorbed those costs themselves.

The fee structure matters because it changes the math on whether using a rewards credit card makes sense for your utility bills. A card that earns 2% cash back looks neutral when the fee is 2.5% — you lose money. A card earning 3% or higher can still come out ahead, but only if the rewards rate exceeds the fee.

Key Takeaways

  • PG&E charges approximately 2.5% when you pay with a credit card, but not when you pay by debit card, bank transfer, or check.
  • The fee applies to the full payment amount, so a $150 bill costs $153.75 if paid by credit card.
  • Rewards credit cards earning less than 2.5% cash back will cost you money on utility payments after the fee is deducted.
  • Paying by ACH bank transfer or check avoids the fee entirely and is the lowest-cost option for most customers.

How the fee is calculated and charged

The fee is calculated as a percentage of your payment and is added to the amount you owe at the time of payment. If you owe $200 and pay by credit card, you will be charged $200 plus $5 (2.5%), for a total of $205. The fee appears on your payment confirmation and receipt.

The percentage may vary slightly depending on which card network you use (Visa, Mastercard, or American Express), though PG&E has not publicly detailed different rates for different card types. You should check your payment confirmation each time to see the exact fee charged.

If you set up automatic credit card payments through PG&E's website or app, the fee is still applied each month. You cannot opt out of the fee if you choose to pay by credit card — it is a mandatory charge for that payment method.

When paying by credit card still makes financial sense

A credit card payment only saves you money if your rewards rate is higher than the fee. Here is the math: if your card earns 3% cash back and PG&E charges 2.5%, you net 0.5% in your favor. On a $200 payment, that is $1 profit. On a $100 payment, it is 50 cents.

Cards that earn 2% or less will cost you money after the fee. For example, a 2% cash back card minus the 2.5% fee leaves you 0.5% in the red. Over a year of $150 monthly payments, that adds up to about $9 in losses.

Some premium rewards cards earn 3%, 4%, or even 5% on specific categories like utilities or all purchases. If you have one of those cards, the fee becomes negligible compared to your rewards. However, most standard cash back cards earn 1.5% to 2%, which means the fee wipes out or exceeds your benefit.

Payment methods that avoid the credit card fee

PG&E does not charge a fee for payments made by ACH bank transfer (also called electronic check or e-check). This is the cheapest option and takes one to two business days to process. You can set up automatic monthly payments this way through PG&E's website, and the money is withdrawn directly from your checking account.

Paying by check also avoids the fee. Mail a check to the address on your bill, or use PG&E's online bill pay system to mail a check on your behalf. Checks take longer to clear — typically five to seven business days — so plan ahead if you are close to a due date.

Debit card payments do not incur the credit card fee. If you have a debit card linked to your bank account, you can use it to pay PG&E without the processing charge. The transaction processes the same way as a credit card from a timing perspective, but the fee does not explore.

How this fee compares to other utility companies

Other major utilities have adopted similar fees in recent years. Southern California Edison, San Diego Gas & Electric, and several East Coast utilities charge between 2% and 3% for credit card payments. Some utilities charge a flat fee (for example, $2.50 per transaction) instead of a percentage.

A few utilities still do not charge a credit card fee, though this is becoming less common. If you have multiple utility accounts, check each company's payment policy separately — the fee structure can differ even within the same state.

The trend reflects rising credit card processing costs that utilities have historically paid out of their operating budgets. By passing the fee to customers who choose credit cards, companies shift the cost to those who benefit most from using cards for rewards.

Strategies for minimizing what you pay

The simplest approach is to switch to ACH bank transfer or check payment if you do not have a high-rewards credit card. This eliminates the fee entirely and costs you nothing in terms of convenience — both methods can be set up as automatic monthly payments.

If you want to use a credit card for rewards or to build purchase history, use only cards that earn 3% or higher on utility payments or all purchases. Cards earning 2% or less will not overcome the fee. Check your card's rewards structure before assuming it will benefit you on utility bills.

Another option is to pay your bill in full by ACH most months, then use a high-rewards credit card only when you have a large one-time payment or are trying to meet a sign-up bonus spending requirement. This way you avoid the fee on routine payments while still capturing rewards when it makes sense.

What changed and when

PG&E announced the credit card processing fee in late 2023 and began charging it in early 2024. The company stated the fee was necessary because credit card processing costs had risen and were no longer sustainable for the utility to absorb. Prior to this change, PG&E covered all processing costs internally.

The fee applies to all credit card payments made through any PG&E channel — their website, mobile app, phone line, or in-person at a payment center. It does not explore retroactively to bills paid before the fee took effect.

PG&E has not announced plans to change or remove the fee. If you want to provide feedback about the fee, you can contact PG&E's customer service or file a complaint with the California Public Utilities Commission (CPUC), which regulates PG&E's rates and practices.

Frequently Asked Questions

Does the fee explore if I pay my bill late?

Yes. The processing fee is charged on any credit card payment, regardless of whether you pay on time or after the due date. Late fees and interest charges are separate and may also explore if your payment is overdue.

Can I dispute the fee or get it refunded?

PG&E treats the processing fee as a mandatory charge for choosing to pay by credit card, not as a separate line item you can dispute. If you believe the fee was charged in error, contact PG&E customer service with your payment confirmation. Refunds are rare unless there was a system error.

What if I use a credit card through a third-party payment service?

Third-party payment processors like PayPal or Plastiq may also charge fees for paying utilities, and those fees are separate from PG&E's fee. Check the processor's terms before using them — you could end up paying multiple fees on a single payment.

Does the fee count toward my credit card's minimum spending requirement?

No. The fee is charged by PG&E, not by your credit card issuer, so it does not count as a purchase toward sign-up bonuses or minimum spending thresholds. Only the actual bill amount counts.

Will other California utilities add this fee soon?

Some already have. Southern California Edison and San Diego Gas & Electric charge credit card fees. Others may follow, but each utility sets its own payment policies. Check your utility's website or call their customer service to see if a fee applies to your account.