Does Apple Pay code differently than the business?

[dlister70]

For example, if I use Apple Pay with my Discover card at the grocery store, will it still code as groceries to give me my 5% back for the grocery quarter or does it code as some kind of online transaction because it's Apple Pay?

[Anonymous]

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@dlister70 wrote:

For example, if I use Apple Pay with my Discover card at the grocery store, will it still code as groceries to give me my 5% back for the grocery quarter or does it code as some kind of online transaction because it's Apple Pay?

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It will code as grocery.  All the major wallets will report the underlying category

[Anonymous]

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@dlister70 wrote:

For example, if I use Apple Pay with my Discover card at the grocery store, will it still code as groceries to give me my 5% back for the grocery quarter or does it code as some kind of online transaction because it's Apple Pay?

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Coding shouldn't matter based on how you're using the card in theory. However, there's still the possibility, which is why there's CYA language in the T&C for e.g. AmEx Offers.

[SarahJo]

It SHOULD code as groceries. In my experiences the method of using a credit source has not ever mattered (I often pay with my iwatch, using my phone/contactless/physical card has never resulted in different results when used at the same merchant). The only difference that I have seen is how the merchant itself codes. Example: Even online purchases don’t always code as an internet purchase for the Uber, depends on how the merchant presents itself to the charge and how it’s listed. Example 2: Physically going to Walmart and buying apples will not code as grocery, but if you purchase apples via Walmart grocery pickup it will (in my experience and based on data points here).