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Anonymous
Say i am graduating from uni and have tuition fee loans to pay off, is it possible to pay off with credit cards to earn miles/cashback?
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Samuel Yap
01 Apr 2020
Software Engineer at Seedly
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Yes.
Banks which DO NOT award points on education payments
Whenever you swipe your card at a merchant, the merchant pays a processing fee known as a Merchant Discount Rate (MDR). Part of this fee is kept by the bank, which allows it to offer rewards on credit cards.
Educational institutions typically enjoy a lower MDR, which means less profit for the bank. Therefore, some banks exclude these education transactions from earning rewards points.
If you hold on to credit cards from any of the following banks, you will not earn miles on education payments (defined by the MCCs 8211, 8220, 8241, 8244 and 8249)
DBS
Citibank
OCBC
UOB
Banks which AWARD points on education payments
The following banks do not explicitly exclude education payments in their T&Cs, which means they’re fair game for points:
HSBC
Bank of China
Standard Chartered
American Express
Maybank