Will my rewards change if I pay by mobile wallet?
Editor's Note
Here at TPG, we regularly emphasize maximizing your earnings on each purchase. For example, we recommend using these credit cards at supermarkets and paying with these cards when at the gas pump.
But what if you use a mobile wallet — such as Apple Pay or Google Wallet — to pay for purchases? Will your "great for supermarkets" credit card still earn bonus points or cash back, or will that purchase code as something else, forfeiting rewards?
Let's examine whether your rewards will change if you pay by mobile wallet.
Related: 3 new technologies from Visa could lighten your wallet and payments
What is a mobile wallet?
Before we jump in, let's clarify what a mobile wallet is.
A mobile wallet is a smartphone app that holds things like credit cards, gift cards and mobile boarding passes for a flight. You don't need to show your physical credit card when paying with a mobile wallet. Instead, you hold your device near the payment terminal and make payments that way.
Mobile wallets can be useful for those who carry multiple credit cards, as they allow you to use them without the bulk of carrying them in your physical wallet.
Most credit and debit cards can be used with mobile wallets. However, there are exceptions.
Some prepaid cards, as well as some business credit cards, may not be available to add to mobile wallets.
Know, too, that you might receive an error when adding a new card since your mobile wallet may need time to complete a security review on your newly activated card.
Related: Are mobile wallets safe?
What rewards will you earn from mobile payments?
The good news is that mobile wallet payments at a supermarket should still be coded as a supermarket expense on your credit card statement, earning whatever rewards your card provides for supermarkets. That's because the Merchant Category Code — which stores set to identify their business type — stays the same. The MCC on your payment shouldn't change whether you swipe your credit card or pay with that same card through your phone's mobile wallet.
However, note that I said "shouldn't." You may sometimes see strange coding on these kinds of purchases. For example, two TPG employees had recent mobile wallet purchases at Walgreens, Rite Aid and CVS code as "merchandise."
I also ran into a unique situation while living in Brazil for nearly six years. Most businesses in Brazil that accept American Express cards use a separate credit card machine for these payments. Because of this, they classify the second payment terminal differently than the first.
For example, a restaurant will have a credit card machine for Visa, Mastercard or Discover payments; as the primary credit card machine, it's assigned a "restaurant" MCC. The Amex terminal is assigned a "bar" MCC to separate the payment-processing machines. That means these payments don't earn bonus points in a restaurant category.
Former TPG points and miles reporter Kyle Olsen had the same experience when visiting Brazil. When paying with Amex cards, he didn't earn bonus points at restaurants.
Barring these abnormalities, most mobile wallet payments earn how you would expect: Supermarkets are supermarkets, gas is gas, and taxis are taxis. A credit card with bonus-earning rates in those categories should provide the associated benefits.
Related: Is it time to ditch your wallet? The pros and cons of mobile payments
Credit cards with bonus earnings for mobile payments
Some credit cards award bonus points when making mobile wallet payments, regardless of your purchase. You could make a mobile wallet payment at your corner store or local mechanic and earn bonus points in this category, regardless of your card's other earning categories.
There aren't many cards that earn extra rewards on mobile wallet payments. However, they can provide serious value when you compare the mobile wallet earning rates to everyday earning rates for swiping your card the old-fashioned way. Here are some top ones:
| Card name | Mobile wallet earning rate | Earning rate on everyday spending |
|---|---|---|
Kroger Rewards World Elite Mastercard®* | Earn 5% cash back with mobile wallet purchases (excluding Kroger Pay) on the first $3,000 in purchases each calendar year, then 1%, regardless of where the transaction was made
Earn 5% cash back on Kroger Pay transactions (excluding fuel center purchases, which do not earn rewards) on the first $3,000 in purchases each calendar year, then 2% | Earn 2% cash back at Kroger and its family of brands; 1% cash back outside of Kroger stores |
Earn 3 points per dollar on mobile wallet payments | Earn 1 point per dollar outside of bonus categories | |
Earn 3% cash back on select merchants, such as Nike and Walgreens, when you use Apple Card with Apple Pay; 2% cash back on Apple Pay purchases otherwise | 1% back on purchases where Apple Pay isn't accepted |
*The information for these cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
For everyday spending (in which you won't earn any bonus points or cash back), changing your payment method could lead to hundreds or thousands of dollars in extra value at the end of the year.
Related: Your complete guide to Apple Pay
Bottom line
In most situations, paying by mobile wallet should net the same rewards as swiping your physical credit card. However, there are some exceptions.
There are a few cards that provide bonuses on mobile wallet payments. Additionally, there are times when you might earn according to your card's everyday spending category. As a result, it's important to double-check your cards' fine print to ensure you maximize your earnings — whether you pay the traditional way or via a mobile wallet.
Related: Maximizing credit cards to become points-rich without spending a ton
TPG featured card
Rewards
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.
Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 4X | Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year. |
| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
| 2X | Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Intro Offer
You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.