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Debunking credit card myths: Will I always earn bonus points with certain merchants?

Feb. 13, 2021
4 min read
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Debunking credit card myths: Will I always earn bonus points with certain merchants?
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Editor’s note: This post has been updated with new information.

We devote a lot of time to travel rewards credit cards here at TPG. By strategically opening and utilizing these cards, you can unlock valuable redemptions like first-class flights and luxurious hotel rooms. However, there are a number of misconceptions out there when it comes to credit cards, so today, I’ll continue diving into our series that debunks these myths and allows you to begin planning for your next vacation.

Let's talk about one of the most popular ways of boosting your account balances: earning bonus points on credit cards.

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Myth: I am guaranteed to earn bonus points at certain types of merchants 

When it comes to the best rewards credit cards, one of the best ways to maximize your earnings is by using them strategically at different merchants.

Depending on the type of purchase, you’ll be eligible to earn bonus points by using certain cards. Some of my favorite cards that fit this bill include:

Unfortunately, these bonuses do not always post as expected. This is all due to the relatively inane element of the financial industry known as merchant category codes (MCCs for short). In essence, every merchant is classified under a certain category, and if your card offers bonus points within that category, you should be eligible to earn a bonus when you swipe your card there.

Related: How to ensure you earn bonus points for grocery purchases

In reality, it doesn’t always work out that way. There are some merchants that are coded differently than you would expect, and you may wind up missing out on points as a result.

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For example, back in June, I visited a local Honeybaked Ham store to grab lunch. I figured it would be coded as dining, so I used my Chase Sapphire Reserve to earn 3x on dining. However, I was surprised to see that I was only awarded one point per dollar spent when it posted to my account. When I visited this handy MCC look-up tool, I noticed that it did not code as a restaurant.

(Screenshot courtesy of Visa)

The total was only $17.78, so I only missed out on 54 Ultimate Rewards point (worth $1.08 based on TPG’s most recent valuations). However, if I was counting on a large purchase earning hundreds or even thousands of bonus points, I’d be out of luck.

To prevent this from happening, I’d encourage you to start with the Visa look-up tool (if it's a Visa card) I mention above to get an idea of how your purchase will be categorized.

If possible, try making a small purchase before going for a larger one and check to see how it’s categorized in your online account. Finally, if you find a discrepancy, consider bringing it to the attention of your card issuer. If it was a mistake on their part, they’ll usually resolve it quickly. Unfortunately, if the merchant isn’t coded properly (like with my Honeybaked Ham example above), there typically isn’t anything the credit card company can do.

Related: Small card transactions lead to big rewards: 17 ways to earn even more points

Bottom line

When you use your credit cards at different types of merchants like grocery stores and gas stations, you’d like to think that you’re getting all of the bonus points you deserve.

Unfortunately, that isn’t always the case, since some stores are classified in quirky ways that could prevent you from earning the double or triple points you’d expect. The best advice is to simply check your accounts each month to make sure that you aren’t being shorted, but if the merchant isn’t coded the way you want, you may be out of luck.

Additional reporting by Chris Dong.

Featured image by Getty Images/Hero Images
Editorial disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

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How we chose these cards

Our points-obsessed staff uses a plethora of credit cards on a daily basis. If anyone on our team wouldn’t recommend it to a friend or a family member, we wouldn’t recommend it on The Points Guy either. Our opinions are our own, and have not been reviewed, approved, or endorsed by our advertising partners.
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TPG featured card

Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards

2 - 10X points
10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day

Intro offer

75,000 bonus miles
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

Annual Fee

$395

Recommended Credit

740-850
Excellent
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.

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023
Best card for premium perks while traveling
TPG Editor‘s Rating
Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer.
4 / 5
Go to review

Rewards Rate

10XEarn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
5X5X miles on flights booked through Capital One Travel.
2X2 Miles per dollar on every purchase, every day
  • Intro Offer
    Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel

    75,000 bonus miles
  • Annual Fee

    $395
  • Recommended 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.

    740-850
    Excellent

Why We Chose It

The Capital One Venture X card is one of the best all-round travel credit cards ever launched. Not only is it offering a tremendous welcome bonus, but cardholders can earn tons of miles on everyday spending and receive a 10,000-mile anniversary bonus to boot. Its annual fee is $395, but cardholders can count on up to $300 in statement credits toward travel booked through Capital One Travel each year and other valuable benefits like access to Priority Pass lounges and Capital One’s own growing family of airport lounges.

Pros

  • Excellent welcome offer worth 75,000 miles after you spend $4,000 on purchases in the first three months.
  • Up to $300 in annual travel statement credits toward bookings make through Capital One Travel.
  • 10,000 bonus miles (worth $100 toward travel) each account anniversary.

Cons

  • The $395 annual fee might be expensive for some, but this card’s benefits provide much more value than that.
  • If you don’t travel frequently, this might not be the best card for you.
  • Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel
  • Receive up to $300 back annually as statement credits for bookings through Capital One Travel, where you'll get Capital One's best prices on thousands of options
  • Get 10,000 bonus miles (equal to $100 towards travel) every year, starting on your first anniversary
  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel and 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases
  • Unlimited complimentary access for you and two guests to 1,400+ lounges, including Capital One Lounges and our Partner Lounge Network
  • Receive up to a $100 credit for Global Entry or TSA PreCheck®
  • Use your Venture X miles to easily cover travel expenses, including flights, hotels, rental cars and more—you can even transfer your miles to your choice of 15+ travel loyalty programs
  • Named editors' choice for "Best New Credit Card of 2021" by The Points Guy
  • Earn 10 miles per dollar when you book on Turo, the world's largest car sharing marketplace, through May 16, 2023