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How merchant category codes decide your rewards
2 min read
When a card promises bonus rewards “at restaurants” or “at supermarkets,” it's really talking about how the merchant is classified, not what's in your bag.
What a merchant category code is
Every business that accepts cards is assigned a four-digit merchant category code, or MCC, describing its main line of business. Supermarkets, restaurants, gas stations, airlines and hotels each have their own codes. The code is set up when the business opens its card-processing account, and it travels with every transaction.
How issuers use it
Your card issuer looks at the code on each transaction to decide which earn rate applies. If the code matches one of your card's bonus categories, you earn the bonus. If not, you earn the base rate. Some issuers also keep their own lists of specific merchants that do or don't qualify.
Why purchases sometimes earn less than you expect
- The store's main business wins. A big-box store that sells groceries is usually coded as a general or discount store, not a supermarket. See Superstores and grocery bonuses.
- Businesses inside other businesses. A café inside a bookstore or a restaurant inside a hotel often carries the host's code.
- Payment processors. Small sellers who take payments through a third-party service may show up under the processor's classification. See Why the same store can code differently.
How to check a merchant's category
Look at a past transaction from that merchant in your card's app or online statement. Many issuers show the category they assigned, and that's a good guide to how the next purchase will earn.