Maximizing Points with Merchant Category Bonuses—The Overlooked Sweet Spot

Let’s start with a quiet truth that many cardholders miss: most rewards points aren’t lost in big purchases—they’re left on the table in the small, everyday swipes.

If you’re like many people using a rewards credit card, you probably know the basics—use the card, pay it off in full, earn points or cash back. But here’s where it gets interesting: credit card issuers don’t reward every purchase equally. Instead, they use something called Merchant Category Codes (MCCs) to classify where you’re spending. And if you learn how to work with those codes—rather than against them—you could unlock extra rewards on the money you’re already spending.

That’s the secret sauce: merchant category bonuses.

This isn’t about spending more or chasing deals. It’s about getting smarter with where, how, and on which card you spend—and making sure every swipe is doing the heavy lifting.

So if you're someone who enjoys maximizing value, doesn’t want to obsess over spreadsheets, but still loves a clever strategy that makes your money go further, you're in exactly the right place.

Takeaways

• Merchant category codes (MCCs) determine how your purchases are classified and what bonus rates apply—they matter more than most people realize.
• Many businesses fall under surprising or counterintuitive categories that can unlock higher rewards (like a yoga studio that codes as “healthcare”).
• Understanding your cards’ bonus categories—and pairing them smartly with the right merchants—can multiply your points without changing your budget.
• Issuer websites often don’t advertise how purchases are categorized. You may need to test or check your statement to uncover hidden opportunities.
• Stack rewards by combining category bonuses with promos, cash-back portals, or loyalty programs for layered benefits.

What Are Merchant Category Bonuses?

At a high level, merchant category bonuses are elevated rewards rates that credit card issuers offer when you spend at businesses classified under specific MCCs—merchant category codes. These are four-digit codes assigned to every business that accepts card payments. They tell the card issuer what kind of business it is, which then determines what bonus, if any, you’ll receive.

Let’s say your card offers 3x points on dining. You swipe it at your favorite café, and boom—3x points. But you also use it at a small gelato shop, and surprisingly, only get 1x. Why? Because the gelato place might be classified as a grocery store or a dessert retailer, not a “restaurant.”

That’s where most people leave money behind—not because they didn’t earn points, but because they didn’t earn enough.

1. Know Your Cards, Down to the Details

Before you do anything else, look at your card’s reward structure and bonus categories. Not just the headline numbers, but the specifics.

Most cards with category bonuses highlight them clearly in their marketing—like “3x on groceries” or “2x at gas stations”—but what they don’t always tell you is how those merchants are identified.

Check your past transactions. On most statements or online dashboards, you can see how the transaction was classified. For example, I noticed that my local farmer’s market coded as a grocery store, which earned me 4x points on my Amex Gold—nice surprise.

Every issuer handles this differently:

• American Express is fairly strict and only honors the intended MCCs.
• Chase is a bit broader and more flexible, especially with bonus categories.
• Citi and Capital One can be hit or miss depending on the specific card and merchant.

Quick tip: Save a note in your phone with your card lineup and their key bonus categories. It makes deciding which card to use at checkout fast and friction-free.

2. The Unexpected Category Wins

Some of the most powerful reward-earning opportunities lie in categories people don’t think to leverage.

Here are a few that have worked incredibly well for me and others who track this closely:

Grocery Stores That Aren’t Grocery Stores

Warehouse clubs like Costco or Sam’s Club don’t usually qualify under “grocery” MCCs. But small neighborhood markets, some delivery services (like Instacart), and even certain CVS or Walgreens locations do.

Your go-to card offering 4x or 5x on groceries may quietly rack up points at those places—if the coding is right.

“Gas Stations” That Include More Than Gas

Some cards offer bonuses at “gas stations”—but that usually includes convenience stores attached to gas stations. Buying a $25 Amazon gift card while fueling up? That could earn you 3x or 4x, depending on your card.

Wellness & Medical Services

Your FSA might cover it, but so might your credit card rewards. Chiropractors, massage therapy centers, and even some boutique clinics often code as healthcare providers. If your card offers bonuses on medical services or wellness, those trips could earn more than just peace of mind.

3. Stack the Bonuses Without Spending More

One of the best ways to stretch your rewards without stretching your budget is by stacking multiple bonuses. This is where the fun (and real power) begins.

Let’s say you’re booking a hotel. You:

• Use a travel rewards card that gives 3x on travel purchases
• Click through a cash-back portal like Rakuten or TopCashBack
• Book with a hotel chain where you’re a loyalty member (hello, Hilton Honors points)

You just earned three types of rewards—on one purchase you were already going to make.

That’s the magic of stacking.

It doesn’t require more money—just smarter navigation.

4. Pay Attention to Small Business Codes

Here's where the creative opportunities live.

Many small businesses on Square or Stripe don’t have tightly defined MCCs. I’ve seen cafes that coded as “entertainment,” fitness studios that showed up as “medical,” and independent bookstores that registered as “office supply”—making them eligible for bonus categories on unexpected cards.

Try this: After shopping at a local small business, check how it coded on your statement. If it falls into a favorable category, you can add it to your go-to list.

A friend of mine found out that her Pilates studio coded as a medical service under her HSA-eligible plan and earned 3x on her premium card’s wellness category. Two birds, one reformer.

5. Rotate and Re-Evaluate Every Quarter

Rewards programs aren’t static. Issuers like Chase Freedom or Discover It have rotating 5% categories that change every quarter—and these can be wildly valuable if you stay ahead.

Instead of trying to remember when categories change, set a quarterly calendar reminder:

• Check which categories are active
• Activate them (yes, you often have to manually do this)
• Match those categories to your upcoming expenses

Planning to buy new furniture? Wait until the “home improvement” quarter hits. Need new running shoes? See if “department stores” are in rotation.

This doesn't mean gaming every dollar—it means lining up your actual life with the moments where rewards flow freely.

6. Consider a Merchant Test Swipe

If you’re unsure how a merchant will code—and the purchase isn’t huge—do a small “test swipe” with your bonus-category card.

Buy a small item, then check your statement a few days later to see how it was categorized. This lets you build a personalized rewards map of your favorite spots.

Over time, you’ll get a sixth sense for which businesses reward you best.

7. Look for Strategic Gift Card Purchases

If your card offers a strong bonus in grocery or pharmacy categories, and you find yourself buying gift cards often (birthdays, holidays, or even for yourself at places like Amazon), you can purchase those gift cards at the bonus-eligible store—and still earn the elevated rate.

Many grocery stores sell gift cards for retail, dining, gas, and online platforms. Use your rewards card, grab the 3x or 4x, and use the gift cards later. You're effectively pulling forward value.

Just keep it modest. You’re not trying to game the system—just make your regular spending smarter.

Play the Long Game, Not the Flash Game

Maximizing rewards isn’t about being perfect. It’s about being curious, observant, and willing to explore the less obvious paths.

You don’t need 10 credit cards or a spreadsheet that rivals a tax accountant’s. You just need a little strategy. A little intention. And a little willingness to notice the codes hiding behind your receipts.

At the end of the day, this is about value. You're spending the money anyway—why not let every dollar do more for you?

Keep it grounded. Stay flexible. And remember, rewards are the icing—not the cake. Your financial health always comes first.