Understanding how MCC codes affect your credit card rewards can help you earn significantly more cashback and points on everyday purchases. This guide explains how to strategically use this knowledge to maximize your rewards.
How Credit Card Bonus Categories Work
When your credit card offers "5% back on groceries" or "3x points on dining," it uses MCC codes to determine which purchases qualify. The card issuer maintains a list of MCCs that fall into each bonus category.
This means your rewards depend on the merchant's classification—not what you actually purchased. Buy groceries at a warehouse club? You might earn the warehouse club rate, not the grocery rate.
Common Bonus Categories and Their MCCs
Grocery Stores (MCC 5411, 5422)
Traditional supermarkets and grocery stores typically code as 5411. Cards like Chase Freedom Flex, Blue Cash Preferred, and many others offer bonus rewards on this category.
Tip: Wholesale clubs (Costco, Sam's Club) use MCC 5300, which usually doesn't qualify for grocery bonuses.
Restaurants & Dining (MCC 5812, 5813, 5814)
Dining is one of the most generous bonus categories. Most food delivery apps (DoorDash, Uber Eats, GrabFood) also code as restaurants, making dining cards valuable for delivery orders.
Travel (MCC 3000-3999, 4511, 4722)
Travel rewards cards typically cover airlines, hotels, car rentals, and travel agencies. Booking through the airline directly vs. a travel site can result in different MCC codes.
Online Shopping (MCC 5262, 5399, 5999)
Marketplaces like Amazon, Shopee, and Lazada often code as 5262 or 5399. Some cards specifically target online shopping, while others may categorize these as general retail.
Strategy: Card Matching
The key to maximizing rewards is matching your credit cards to your spending categories:
- Identify your top spending categories by reviewing past statements
- Choose cards with the highest rewards for those categories
- Learn which merchants use which MCCs to avoid surprises
- Use the right card for each purchase based on the expected MCC
Common MCC Pitfalls to Avoid
- Walmart/Target: Often code as department stores (5311), not grocery
- Costco/Sam's Club: Warehouse clubs (5300), not grocery
- PayPal/Venmo: May code as payment services, losing category bonuses
- Gift cards: The purchase location's MCC applies, not the gift card brand
Checking Your Transaction Categories
Most credit card apps and websites show how each transaction was categorized. Check regularly to ensure you're earning the expected rewards. If a purchase codes incorrectly, some issuers allow you to dispute the category (though success varies).