Popular online shopping categories with a credit card
Quick insights
- Credit card issuers will categorize your purchases into spending categories.
- Spending categories are often awarded different rewards and points values.
- Knowing how your card assigns rewards values to any given spending category can help you earn rewards and credit card points more quickly.
You can put a lot of things on a credit card these days. How your card issuer classifies those purchases may be key to helping you maximize the earning potential of your rewards program. In this article, we’ll discuss some credit card spending categories and how you can use them to earn rewards and cash back.
Understanding spending categories
Spending categories refer to specific types of purchases that can go on a credit card. Your purchases get categorized by your credit card issuer and put into spending categories.
Common spending categories include:
- Restaurants
- Department stores
- Grocery stores
- Streaming services
- Home improvement
- Travel
- Gas stations
Card issuers may offer different rewards values depending on the spending category. For example, some Chase cards offer 5x points on travel and 3x points on streaming services. Some cards may rotate points values, offering higher points in certain categories for a limited time. Some cards may also assign or change rewards values based on your spending habits.
It's important to understand the rewards values associated with your card's spending categories to maximize your rewards and opportunities to earn cash back.
Activating credit card spending categories
Cards that have rotating spending categories may require a little more effort to use. Credit card issuers may automatically apply the rewards points, while others require activation by the card user.
To activate credit card spending categories, you may need to log in to your online account or contact your credit card issuer. Activation methods may vary depending on the credit card issuer, so it's important to check the specific instructions for your card.
Getting rewards from online shopping
There are a few ways you may get the most out of online shopping, including maximizing cash back rewards, using the right card for online shopping, taking advantage of bonus categories and promotions and exploring online shopping portals for deals and savings.
Maximizing cash back rewards
Some credit cards are designed to offer cash back as a reward for daily purchases. Cash back rewards are usually earned when you make credit card purchases in select categories, like dining, travel, retail stores and gas stations. They can be redeemed for credit card statement credits, purchases through participating online retailers, gift cards or discounts on services or travel.
Choosing the right credit card, paying attention to bonus categories and promotions and using shopping portals are a few ways that you can maximize your cash back when online shopping.
Choosing the right credit card for online shopping
If you are a frequent online shopper, you may find that some credit cards give you more rewards or exclusive offers when online shopping.
If you’re searching for a credit card that is beneficial for online shopping, consider the following:
- Look for credit cards that offer higher cash back rewards or bonus points for online shopping.
- Consider credit cards with specific partnerships or offers with popular online retailers.
You will also want to compare annual fees, interest rates and other terms and conditions to find the best fit for your needs.
Utilizing bonus categories and promotions
If your credit card has rotating rewards, you may want to plan bigger purchases accordingly. Keep an eye out for limited-time promotions or special offers on particular spending categories that can help you maximize your rewards. For example, if you’ve been on the hunt for a new laptop, you might want to wait and make that purchase if an upcoming month is offering higher rewards on electronics store purchases.
It may also be beneficial to find a way to track bonus categories. This can be as simple as keeping a note on your phone, making a spreadsheet or keeping a note in your wallet with the categories listed. Bonus rewards on certain spending categories are only useful if you can remember when they can be used.
Using online shopping portals and apps
Some credit cards may give you access to an online shopping portal available only to cardmembers. Your card issuer may have their own portal or partner with a third-party platform.
In that portal, you might find exclusive offers and deals or additional cash back or rewards for making purchases through the portal. For example, Chase Ultimate Rewards® cardmembers can visit Chase Offers® for exclusive deals and discounts and Shop Through Chase® to earn additional Chase Ultimate Rewards points on online purchases.
Before adding items to your cart, make sure to link your credit card to the shopping portal or app, if necessary, to ensure you receive additional cash back or rewards.
Pay attention to terms and conditions
When using credit cards for online shopping, there are a few things to keep in mind. You will want to read and understand the terms and conditions of your credit card's rewards program, including any limitations or exclusions.
You also may want to be aware of any minimum spending requirements or redemption thresholds that apply to rewards. Because spending categories can change, you will likely want to stay updated on any changes to the rewards program or spending categories of your credit card.
In summary
Online shopping can help you earn cash back and rewards with your credit cards. Many credit cards separate consumer purchases into spending categories. Depending on the card, you may earn higher points when shopping online or making purchases in a particular spending category. Popular spending categories include travel, gas stations, grocery stores, streaming services, home improvements stores and more. Check your card's terms and conditions to see which spending categories can earn you the most rewards or cash back.
