Guides · Staying on top of it
Rotating 5% categories: how to actually get the bonus
2 min read
Rotating-category cards pay a high rate on a different set of categories each quarter. They reward people who keep track and quietly pay everyone else the base rate.
How they work
Each quarter, the card announces a few bonus categories, such as gas stations, groceries or online shopping. Purchases in those categories earn a higher rate, often 5%, up to a quarterly spending cap. Everything else earns the base rate, usually 1%.
The three things that trip people up
- Activation. Many of these cards require you to opt in every quarter. Depending on the issuer, purchases made before you activate may not earn the bonus.
- The cap. Once you've spent the quarterly limit in bonus categories, the rate drops to the base rate until next quarter. See Bonus caps.
- Category definitions. “Groceries” or “department stores” follow the issuer's merchant definitions, which may not match yours. See How merchant category codes decide your rewards.
A simple routine
- Put a reminder on the first day of each quarter (January, April, July and October) to check the new categories and activate.
- Note the categories somewhere you'll see them, like your phone's wallet notes.
- Check your progress toward the cap partway through the quarter.
- Switch back to your everyday card once the bonus is used up.