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Do all purchases count towards the creation of rewards?

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Generally speaking, if you purchase a product or service using a rewards credit card, you will earn rewards based on that card’s reward structure. For example, if you go to the mall and use your card to buy a shirt, it is obviously a purchase and will earn you a reward.

But not all payments you make with your card will count as purchases and earn you rewards. Most issuers will not offer rewards for things like interest, commissions, balance transfers, or cash advances. Some also have certain exemptions for purchases from certain vendors, such as government agencies or utilities, or even certain stores.

Here’s what you need to know about which payments won’t boost your Rewards balance. In addition, we will look at specific exemptions by issuer.

Not all transactions earn rewards

Most credit card rewards programs detail categories that are not eligible for rewards. Let’s look at these segments in more detail:

  • Net purchases: If you spend $800 per month and then return $100 worth of goods, you will only be rewarded for spending $700. This happens even if the return occurs in the next month; the card issuer will deduct these points.
  • Cash advancesA: If your credit card has a PIN, you can probably use it at an ATM. You can also go to the bank and get cash with a card. But this is usually a terrible idea, because interest rates on cash advances are high and start accruing immediately, even if you pay back at the end of the month. And you also don’t earn bonus points for advances. There may be other instances where using a card for cash or cash equivalents is considered a cash advance, such as buying chips at a casino or buying cryptocurrencies online.
  • Balance transfersA: While it may make sense to transfer your balance from a card with high interest rates to a card with lower interest rates, fees are often charged. You do not earn bonus points for balance transfers.
  • Convenience of verification: Known as “convenience checks” or “credit card checks,” these sometimes come in the mail along with your monthly statement. Be warned: they are treated the same as cash advances, with associated high interest rates, and do not count towards rewards.

Purchases not counted as rewards by the card issuer

Check your card issuer below to see which categories are ineligible for rewards:

American Express Reward Exceptions

  • Interest
  • Fees
  • Loading prepaid cards
  • Buying American Express Travelers Checks
  • Currency operations
  • Any amounts subsequently credited back to your account as a refund

Find out more by visiting the issuer’s website.

Bank of America Rewards Exceptions

  • Doctors and hospitals
  • Government Services and Taxes
  • Insurance payments
  • Membership payments
  • School payments
  • Payments for utilities and other non-retail services

Find out more by visiting the issuer’s website.

Exclusions from Capital One rewards

  • Cash advances
  • Balance transfers
  • Checks used to access your account
  • Operations with cash equivalent

Find out more by visiting the issuer’s website.

Chase Reward Exclusions

  • Purchases from gift card merchants or merchants that sell points or miles
  • Merchants specializing in wholesale or commercial sales of home, garden and landscaping products.
  • Product warranties
  • Travel insurance

Find out more by visiting the issuer’s website.

Exceptions to Citi Rewards

  • Balance transfers
  • Cash advances
  • Interest fees

Find out more by visiting the issuer’s website.

Learn about reward exclusions

  • Buying from sellers outside the US
  • walmart
  • Target
  • The shops
  • wholesale clubs
  • discount stores
  • Supercenters

Find out more by visiting the issuer’s website.

bottom line

It’s clear that issuers handle exceptions differently, so there’s no single definition of what fees you’ll be rewarded for and what you won’t. As a general rule, buying a product will likely earn you rewards, as will buying many types of services or subscriptions. But be sure to check the specific exclusions for your bonus card so you know exactly what to expect.

Editorial disclaimer

The editorial content on this page is based solely on the objective judgment of our contributors and is not based on advertising. It was not provided or ordered by credit card issuers. However, we may receive compensation when you click on links to our partners’ products.

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