What's considered a "purchase"? (Rewards)

[Anonymous]

What all is considered a purchase when it comes to earning points? Obviously cash advances wouldn't qualify, but what about recurring bills? Electric bill, car payment, etc? I'm basically trying to determine what CL I would need to maximize rewards. Thanks!

[BmoreBull]

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@Anonymous wrote:

What all is considered a purchase when it comes to earning points? Obviously cash advances wouldn't qualify, but what about recurring bills? Electric bill, car payment, etc? I'm basically trying to determine what CL I would need to maximize rewards. Thanks!

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From what I've seen anything that isn't a cash advance or balance transfer. I've paid rent, utilities, cell phone bill, and child support with my card and still got cash back. When COVID-19 first hit, everybody was waiving credit card processing fees. So I took full advantage of paying everything that I could with my card. 

[Anonymous]

Paying my rent with a CC codes as a purchase. There is normally a fee that far exceeds the base rewards. It is only worthwhile when the fee is waived or if I need the extra spend to get my desired Hyatt status for the year.

My electric company will accept credit cards for a fee. They've never waived the fee so I've never tried it. I would be very surprised if it coded as anything other than a purchase.

My car payment cannot (to my knowledge) be made with a card.

My child's daycare can be paid with a card. Same comments as for my electric bill.

Some school tuitions (private secondary & college) can be paid with a card. Fees vary. I've never heard of them coding as cash advances.

Federal estimated and actual income taxes can be paid with a card. There is a fee that varies by processor. Many cards code it as a purchase. Some states and localities accept tax payments via credit card.

[Anonymous]

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@Anonymous wrote:

What all is considered a purchase when it comes to earning points? Obviously cash advances wouldn't qualify, but what about recurring bills? Electric bill, car payment, etc? I'm basically trying to determine what CL I would need to maximize rewards. Thanks!

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Recurring bills count as purchases (as stated, they MAY incur some additional fees, but so might the use of a credit card in various states at certain stores anyway).   I have never understood why people think this is different.

Case 1:  I go the say Home Depot web site and use my credit card to pay $20 for an item.   Hopefully Home Depot sends it to me, the issuer pays Home Depot $20 minus a fee, and, before the due date, I pay the issuer and get some rewards.

Case 2:  I have a recurring electric bill which I auto pay and can check online.   The utility has provided the service (or will, depending whether the charge is for the previous or following period), the issuer pays the utility and I pay the issuer.  And get rewards.

Not too much difference IMO!

[Anonymous]

Great info, thanks guys. So sounds like the rule of thumb is, no processing fee then swipe that mofo.

[ccquest]

Or if processing fee < cash back/rewards then swipe that mofo.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

What all is considered a purchase when it comes to earning points? Obviously cash advances wouldn't qualify, but what about recurring bills? Electric bill, car payment, etc? I'm basically trying to determine what CL I would need to maximize rewards. Thanks!

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Recurring bills count as purchases (as stated, they MAY incur some additional fees, but so might the use of a credit card in various states at certain stores anyway).   I have never understood why people think this is different.

Case 1:  I go the say Home Depot web site and use my credit card to pay $20 for an item.   Hopefully Home Depot sends it to me, the issuer pays Home Depot $20 minus a fee, and, before the due date, I pay the issuer and get some rewards.

Case 2:  I have a recurring electric bill which I auto pay and can check online.   The utility has provided the service (or will, depending whether the charge is for the previous or following period), the issuer pays the utility and I pay the issuer.  And get rewards.

Not too much difference IMO!

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My utility explicitly states that the reason they charge a fee for credit card payments is that their license doesn't permit them to absorb the cost and pass it on to all customers.

Landlords don't like collecting rent via card. It puts them in a worse position if anything goes wrong. The fee is likely intended to discourage the practice. The fee waivers during the pandemic are likely a concession that it's better to collect rent via card than not at all.