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Every hardcore points and miles enthusiast knows the pain of not being able to pay with a credit card. And the pain is all the more so when it comes to large recurring payments.
Missing the opportunity to earn potentially thousands of points and miles, or cash back, is not our style.
In fact, you can use your credit card to fund the majority of bill payments, rent, business utility bills, and many other recurring expenses.
Maximizing the benefits of earning points while paying bills is a case of timing and using the right card for the right payment.
Let’s look at pros and cons of earning points while paying bills, what type of bills you can pay with a credit card, and which credit cards will give you the greatest return doing so.
Paying bills is an unavoidable part of life. But did you know you can earn rewards points and cashback when paying many bills with a credit card?
I used to pay all my bills by check or bank transfer. I had no idea I was missing out on a simple way to earn extra points and miles
After discovering this trick, I now put as many bills as possible on my travel rewards credit cards. Over the course of a year, those points add up quickly.
In this article I’ll explain everything you need to know about earning points on bill payments including
- The pros and cons of paying bills with a credit card
- What types of bills you can pay with a card
- Strategies to maximize rewards on bills
- The best credit cards for earning points on bills
Pros of Paying Bills with a Credit Card
Here are some of the biggest benefits of charging bills to a rewards credit card:
1. Earn Points and Cash Back
This is the main reason to pay bills with a card. Most credit cards earn 1-5% cash back or points on purchases. When you charge recurring bills, those rewards can add up quickly.
For example, if you spend $500 per month on bills and your card earns 2% cash back, that’s $120 per year.
2. Reach Signup Bonuses
Welcome offers on new credit cards typically require spending $1,000 – $5,000 within 3-6 months. Paying bills is an easy way to hit those minimum spend requirements.
You can time applications to match up with big bill payments like tuition, insurance premiums or property taxes.
3. Simplify Accounting
Charging all expenses to one credit card consolidates spending onto a single statement. This streamlines bookkeeping compared to tracking multiple bills and receipts.
4. Enjoy Credit Card Protections
Rewards cards offer protections you don’t get with debit cards, checks or bank transfers. These include $0 fraud liability, purchase protection and travel insurance.
Cons of Paying Bills with a Credit Card
While using credit cards for bills has advantages, there are some potential downsides to consider:
- Credit card processing fees – Some billers charge 1-3% extra for card payments
- Remembering to pay your statement – Late fees can negate any rewards earned
- Overspending – It’s easier to overspend with credit vs cash/debit
As long as you pay your statement balance in full each month, the pros generally outweigh the cons. But it’s smart to be aware of any possible pitfalls.
What Bills Can You Pay with a Credit Card?
Many common recurring expenses can be paid by credit card. However, options for some bills are limited due to processing fees or acceptance issues.
Here are some popular bills you can pay with a card:
- Utilities – Electric, gas, water, garbage collection
- Insurance – Auto, health, homeowners, life, pet
- Telecommunications – Cable, satellite TV, internet, phone
- Streaming Services – Netflix, Hulu, Spotify, Amazon Prime
- Rent – For an extra fee through Plastiq or RadPad
- Mortgage – Only on select payment platforms like Plastiq
- Taxes – IRS, property and some others via payment processors
The best rewards generally come from bills that don’t charge processing fees. Check with each of your providers to understand their specific policies.
Maximizing Rewards on Bill Payments
Follow these tips to get the highest returns possible on your bill payments:
Choose the Right Card
Select a credit card that aligns with your spending profile:
- Flat rate card – Good if no category bonuses fit your bills
- Bonus category card – Best if your bills fall into high earn categories
- Business card – Ideal for maximizing rewards on business expenses
I put my telecom bills on a card that earns 5% back on those purchases. And I use a 2% flat rate card for bills that don’t have bonuses.
Watch Out for Fees
Some providers charge 1-3% processing fees for credit card payments. Run the numbers to make sure rewards outweigh any fees you’ll incur.
Use Bill Pay Services
If a provider doesn’t accept credit cards directly, you can often still pay by card using Plastiq or similar payment services. They’ll charge around 2.5% but can be worthwhile depending on your card’s rewards rate.
Pay Business Bills
Business credit cards don’t report to your personal credit. They’re great for maximizing rewards if you have substantial business expenses.
Meet Signup Bonuses
When applying for a new card with a signup bonus, try to time it around large bill payments. This makes hitting the minimum spend requirement easy.
Pay Down Your Balance
The most critical rule is to always pay your statement balance in full each month. The interest will cancel out any rewards you earn otherwise.
Best Credit Cards for Paying Bills
Here are some of my favorite cards for maximizing rewards on bill payments:
Chase Ink Business Cash® Credit Card
This no annual fee business card earns 5% cash back on internet, cable, phone services, and office supplies (on up to $25,000 in combined purchases each account anniversary year).
Citi® Double Cash Card
The Citi Double Cash earns easy-to-redeem 2% cash back (1% when you make a purchase and 1% when you pay it off) with no cap on total rewards.
U.S. Bank Cash+® Visa Signature® Card
Choose two categories each quarter to earn 5% cash back on up to $2,000 in purchases. Categories include utilities, internet, cell phone plans, and more.
Capital One SavorOne Rewards Credit Card
This consumer card earns unlimited 3% cash back on streaming services, grocery stores, dining, and entertainment.
Wells Fargo AutographSM Card
The Autograph card earns 3x points on cell phone protection when you pay your cell bill with the card (get up to $600 protection).
The Bottom Line
Paying bills with a rewards credit card is an extremely easy way to earn extra points and miles.
Just be sure to select the right card for your spending profile, watch out for fees, pay your balance on time, and take advantage of signup bonuses.
Over time, you can rack up a ton of valuable rewards just from turning everyday bills into rewards opportunities. Give it a try – you might be surprised how quickly those points add up!
What if Your Provider Doesn’t Accept Credit Card Payments?
It’s one thing if your provider charges credit card processing transaction fees. It’s another if they don’t even offer credit card payment altogether.
However, the good news is that even if your provider doesn’t accept credit cards, you can often still pay with one by using a third-party payment service.
Plastiq is one such example.
With Plastiq, you can fund a payment using your credit card and have the payment delivered to the payee as a check. That means you’ll still earn credit card rewards and your service provider will be able to accept the payment.
If you run a business, Plastiq could also help you pay contractor or supplier bills before you have the funds to do so, increasing short-term cash flow. This would be cheaper and easier than taking out a loan and would allow you to earn points on your business credit card while doing so. If you use this strategy, just be sure you can pay your balance in full on time.
Melio is also another option for businesses, allowing you to pay business bills using your business credit card.
Whether it’s Melio or Plastiq, business or consumer bills, keep in mind that both of these services charge a credit card transaction processing fee of 2.9%. When calculating the benefits of paying with a credit card, you’ll need to ensure that your return in rewards exceeds the fee of 2.9% for it to be worthwhile.
Capital One Venture Rewards Credit Card
The Capital One Venture Rewards Credit Card stands out as a card which can give you a return on bill payment while offering some premium travel perks. For an annual fee of $95, the card offers significant value.
When paying bills that don’t fall into bonus categories, the Capital One Venture Rewards Credit Card will offer a helping hand, earning you unlimited 2X miles on all eligible purchases.
If you charge $6,888 in utility bill payments to the card, that would amount to 13,776 miles. Capital One miles have a redemption value between 1 cent to 1.4 cent, depending on whether you redeem them through the Capital One portal or transfer them to airline or hotel partners. That means you’d earn approximately between $137.76 and $192.86 back in Capital One miles, which can be transferred to a range of airlines and hotels at 1:1 ratios.
On top of this, the card offers up to $120 Global Entry or TSA PreCheck® statement credit every four years, as well as Hertz Five Star® status. You’ll also enjoy two complimentary visits to Capital One lounges every year.
Here’s a summary of what the Capital One Venture Rewards Credit Card has on offer:
- Earn 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel
- Earn 2X miles on all eligible purchases
- Zero foreign transaction fees
- Up to $120 Global Entry or TSA PreCheck® statement credit every four years.
- Hertz Five Star Status*
- Two complimentary visits per year to Capital One lounges
* Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note that enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
once you spend $4,000 on purchases within 3 months from account opening, equal to $750 in travel.
Annual Fee: $95
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FAQ
Do I get credit card points for paying bills?
Does paying bills with credit card count as purchase?
Does paying a bill with a credit card count as a purchase? In most cases, yes. Always check with the company that issues the credit card to be sure. However, most cards view bill payments as transactions.
Is it good to pay bills with a credit card?
Credit cards a definitely a good option for paying your cellphone, internet and cable bills. You won’t have to pay a convenience fee to do so, and you can set up credit card payments online and earn rewards on these purchases. Also, some cards offer cellphone protection if you use your card to pay your cellphone bill.
Do bills count towards credit card points?
Ways to earn points
The smart way to earn rewards points is to use your credit card for your everyday spending – things you need and would buy anyway, so you’re not spending on unnecessary items or creating debt just to earn points. You could earn points by: Paying your bills.