Are you a food lover who's always trying to maximize your credit card rewards when dining out? If so, you might question whether the bars you visit count as restaurants for credit card bonus points. It can be a confusing landscape to navigate. Fret no more, as we dive into the world of credit card reward categories to discover which types of establishments count as restaurants when claiming those all-important points.
Do Bars Count As Restaurants For Credit Cards Table of Contents
How Credit Card Reward Categories Work
How Credit Card Reward Categories Work
First, let's understand how credit card reward categories function. Depending on the credit card you possess, you may receive bonus points or cash back when you spend money in specific categories, like groceries, gas stations, or restaurants.
These categories are pre-defined by credit card issuers using Merchant Category Codes (MCCs). MCCs are four-digit codes used by merchants to classify their business based on the products or services they offer. Credit card issuers then use these codes to determine rewards eligibility.
What Qualifies as a Restaurant for Credit Cards?
Typically, the "restaurant" category in credit card rewards programs includes any establishment that primarily serves prepared food and beverages for immediate consumption, either on or off the premises. That being said, the definition varies depending on the card issuer and the MCC. Examples of qualifying establishments may include:
- Sit-down restaurants
- Fast food outlets
- Cafes and coffee shops
- Bars, pubs, and taverns that primarily serve food
- Food delivery services tied to restaurants, like GrubHub, DoorDash, and Uber Eats
Do Bars Count as Restaurants?
Yes, and no. Some bars are indeed classified under the restaurant category for credit cards. However, it depends on the bar's primary function and the percentage of sales from food. If a bar generates the majority of its revenue from selling alcohol rather than food, it may be classified as a different MCC, like a drinking place or a liquor store, which may not qualify for credit card rewards in the restaurant category.
Furthermore, some credit card issuers may explicitly exclude bars or pubs as qualifying for their rewards programs, whereas others may not. Therefore, it's crucial to check the terms and conditions of your particular credit card program to determine how they classify bars and whether they qualify for rewards in the restaurant category.
Tips for Maximizing Rewards at Bars
- Check your credit card's terms and conditions to see if bars are included in the "restaurants" category in their rewards program.
- Pay attention to the MCC of the bar by looking at your transaction history after your visit. This is usually visible through your online banking portal or app.
- Choose bars that offer food alongside their alcohol selections, as these establishments are more likely to be classified as restaurants.
- Utilize a credit card offering bonus points or cashback specifically on dining and food-related categories to maximize your rewards potential.
Do Bars Count As Restaurants For Credit Cards Example:
Imagine you have a credit card that offers 3% cashback on all restaurant purchases, and you decide to visit your local bar to enjoy a night out with friends. This bar not only serves drinks but also has a decent food menu well-loved by the locals. After a fun night, you eagerly add up your purchases, hoping to earn 3% cashback on your expenses. However, when you check your credit card statement, you find that the transaction is categorized as a "drinking place" rather than a restaurant, disqualifying it from your card's restaurant cashback program.
To avoid similar occurrences, make a habit of checking your credit card's rewards terms and conditions and keeping track of MCCs to ensure you're making informed choices when seeking rewards.
Congratulations, you are now well-equipped to determine whether bars count as restaurants for your specific credit card rewards program! Always remember to review your card's terms and conditions and the MCC of the establishments you visit regularly to ensure you're making the most of your credit card benefits.
Want more tips and tricks on personal finance and making smarter financial decisions in daily life? Be sure to share this article with your friends and explore other insightful guides on Flik Eco. The next time you visit a bar or restaurant, don't forget to maximize those rewards!
