Bank Of America Rewards Categories

Bank of America revealed a brand-new Bank of America Cash Benefits charge card that provides clients the flexibility to choose how they earn rewards based on their changing concerns and interests. The brand-new Bank of America Money Rewards 3% classifications are now live and you can go ahead and pick your favorites.

Bank of America Cash Rewards 3% Categories

Beginning the week of January 14, cardholders will have the ability to select how they make their 3% cash back. Simply choose one of 6 popular classifications. These categories are:

  • Gas
  • Online shopping
  • Dining
  • Travel
  • Drug stores
  • Home Improvement & Home Furnishings

The card will continue to earn 2% cash back at grocery stores and wholesale clubs, and unrestricted 1% money back on all other purchases.

Clients can quickly change the 3% classification for future purchases once each calendar month in their Mobile Banking app or in Online Banking, or make no change and it stays the exact same. The 3% cash back classification will at first be set to gas, so you will at least make that rate in one classification, even if you forget to set it. The capability to choose the 3% category will immediately be applied to existing Money Benefits accounts and all brand-new Money Rewards cards beginning in mid-January, when the brand-new card is introduced.

What makes these rates much more interesting is Bank of America’s Preferred Rewards program can get a 25% to 75% rewards bonus on every purchase. That indicates the 3 percent option classification might increase to 5.25 percent; the 2 percent at grocery stores and wholesale clubs could increase to 3.5 percent; and the unlimited 1 percent for all other purchases might go up to 1.75 percent.

More: Wells Fargo Zero Percent Balance Transfer

Bank of America® Customized Cash Rewards credit card

Rewards
3% on a category of your choice and 2% on grocery stores and wholesale clubs (up to $2,500 in combined choice category and grocery stores purchases) and 1% on all other eligible purchases. However, you can earn 25%-75% more cash back on every purchase if you’re a Preferred Rewards member.

Welcome bonus
$200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days from account opening.

Annual fee
$0

Intro APR
Introductory 0% APR for your first 15 billing cycles on purchases and on balance transfers made within 60 days of account opening.

Regular APR
15.49% – 25.49% variable

Balance transfer fee
Either $10 or 3%, whichever is greater

Foreign transaction fee
3%

Credit needed
Excellent/Good

Pros

  • No annual fee
  • Introductory APR period on balance transfers and purchases for the first 15 billing cycles
  • $200 online cash rewards bonus
  • Have a choice of 6 different categories you can change monthly

Cons

  • 3% foreign transaction fee
  • Can’t receive a greater cash-back rate unless you’re a Preferred Rewards member

Optimize your money back with categories that fit your needs

Earn 3% cash back on your option of one of the 6 categories shown below. To change your option classification for future purchases, you must go to Online Banking, or utilize the Mobile Banking App. You can alter it once each calendar month, or make no change and it remains the same. Up until you change your classification for the very first time, it will be set to Gas.

How your purchases are classified

Merchants are assigned a merchant category code (MCC) based on the kinds of services and products they offer. Bank of America does not determine which MCC a merchant selects to categorize itself, therefore some purchases may not fall under the classification where you might anticipate them to appear. We do group similar MCC’s into grocery store, wholesale club, and choice classifications to assist you earn cash back on purchases made at specific merchants. Please see the category information for examples and exceptions.

What is the Bank of America Cash Reward’s cash back structure?

With the Bank of America Cash Rewards, you can select which classification to make 3 percent cash back on– gas, online shopping, dining, travel, drug shops or house enhancement and home furnishings. In addition to this, you’ll likewise make 2 percent money back at supermarket and wholesale clubs and 1 percent back on all other purchases.

However, it’s essential to note that there’s a $2,500 limitation on combined 2 and 3 percent category purchases each quarter, then the benefits rate is up to 1 percent. If you’re able to reach this limitation on 3 percent classification purchases alone, you’ll make $75 in cash back per quarter, for a total of $300 in money back each year. Plus, you’ll make 1 percent back on all costs after you reach the limit, meaning you could make even more in rewards.

The Bank of America Cash Rewards also includes no yearly fee and a welcome bonus offer of $200 money back after investing $1,000 within the first 90 days after account opening, among other benefits.

Can you pick your 3% cash back classification?

When you initially get your Bank of America Cash Rewards, your 3 percent category is set to gas by default. If you don’t wish to earn 3 percent money back on gas purchases, you can pick which classification you ‘d rather earn 3 percent back in, such as online shopping, dining, travel, drug shops or house improvement/furnishings.

In addition, you can pick to change your category once each month. So, if you anticipate that you’ll be spending a lot on dining or travel purchases during a specific month, you can alter your category to accommodate your costs habits and make more benefits.

How to choose your Bank of America Cash Rewards category

Here are the steps you need to follow to choose or change the 3 percent category for your Bank of America Cash Rewards card:

  • Action 1: Analyze your spending habits. Prior to choosing a category, you must first evaluate your costs patterns. For example, if you eat in restaurants often, you may wish to pick the dining category, and if you make a great deal of online purchases, you might want to select the online shopping classification.
  • Step 2: Log in to your account and select your card. After visiting to your Bank of America account through electronic banking or the mobile app, choose your Bank of America Cash Rewards card.
  • Action 3: Manage your benefits. Next, select your card’s benefits tab. You must see a list of your 3 percent classification options. Pick “Get Started” to alter your classification.
  • Step 4: Choose your category. You’ll see that your 3 percent category is set to gas if this is the very first time you’re changing your classification. If you currently understand which classification you want to earn money back in, select “Change Category” and choose from the list of options. If you wish to discover more about your options before picking a category, you can select “Category Details.” This will supply you with examples of qualifying merchants and purchases. Once you change your category, your option will enter into impact for all future purchases.

How to take full advantage of Bank of America cash back categories

There are a few things you can do to optimize your revenues with the Bank of America Cash Rewards card. These consist of:

  • Picking the very best 3 percent category for your lifestyle. You ought to pick the classification that works best for you. It needs to be a category that you’ll have high costs in throughout a particular month or quarter.
  • When essential, switching 3 percent categories. Change categories up to as soon as per month if you require to. This can come in helpful if you have a large expenditure coming up in a specific classification.
  • See if you’re eligible for Preferred Rewards. Bank of America Preferred Rewards members can earn 25 to 75 percent more benefits on their purchases. This indicates you might make a minimum of 25 percent more on 3, 2 and 1 percent classification purchases. To get approved for Preferred Rewards, you must have a certifying Bank of America or Merrill account and meet minimum balance requirements.
  • Pairing your card with a flat-rate cash back option. To make more benefits on all non-category spending, think about matching the Customized Cash Rewards card with a flat-rate card like the Citi ® Double Cash Card or Wells Fargo Active Cash ® Card (which makes money benefits). That way, you can make a minimum of 2 percent back on all purchases instead of 1 percent. (For the Citi Double Cash, that’s 1 percent as you buy and 1 percent as you pay for purchases.).

What purchases receive a money back reward?

Every purchase you make using your card is categorized using a merchant category code (MCC). Merchants are designated an MCC based on the services and products they provide. While Bank of America does not have control over how a merchant classifies itself, they do group comparable MCC’s into supermarket, wholes club and option classifications to assist maximize your bonus offer.

See what purchases get approved for bonus invest categories listed below.

Supermarket and wholesale clubs classification

Grocery store merchants and wholesale clubs include supermarkets, freezer or meat lockers, candy, confection or nut shops, dairy product shops and bakeshops. Superstores and smaller sized stores that offer groceries, such as drug stores and corner store, do not make the reward rate.

Gas classification

The gas category includes gas and fuel merchants whose main line of business is the sale of automobile gas that can be bought inside the service station or at the automated fuel pump along with fuel bought at boat marinas. Fuel dealerships whose main line of work is the sale of heating oil, lp, kerosene and other fuels are also included.

Online shopping classification

The online shopping category consists of online and mobile app purchases made at a variety of retailers, such as bookstores, outlet store, specialty retailers and sporting items shops. For instance, Amazon.com, Bestbuy.com, Ticketmaster.com, QVC.com, Americanairlines.com, Starbucks.com and Uber.com are consisted of in this category

Merchants that supply non-retail services, such as hospitals and physicians, federal government services and taxes, insurance, membership energies, schools and companies are omitted from the classification

Dining category

The dining classification consists of eating places, restaurants, fast food dining establishments, bars, cocktail lounges, discotheques, nightclubs, taverns and drinking places. For instance, McDonald’s, Starbucks, The Cheesecake Factory, Domino’s Pizza and Grubhub all fall under this category.

Travel classification

A range of purchases – ranging from daily travel costs to getaways and getaways – receive the travel classification. Merchants consist of, however are not limited to, parking area and garages, tolls, rideshares and taxis, commuter traveler travel, traveler destinations and exhibits, airlines, amusement parks, cruise lines, hotels and automobile rentals.

For instance, Delta Airlines, Airbnb, E-Zpass, Sunpass, Uber, Marriott. Enterprise Rent-A-Car, Amtrak and Expedia are thought about qualifying merchants.

Drug stores classification

The drug shops category includes purchases made at drug stores, pharmacies, drug owners and druggist sundries, such as CVS Caremark, RiteAid, Walgreens and Duane Reade.

House improvement/furnishings

Merchants that receive the home improvement/furnishings classification consist of hardware shops, contractors, air conditioning and refrigeration service center, antique shops, carpet and upholstery cleaning services, yard and garden supply shops, paint stores, family device shops, miscellaneous house furnishings specialty shops and more.

For example, Ace Hardware, Menards, Bed Bath and Beyond, IKEA, Pottery Barn, Lowes, Sherwin-Williams, Williams-Sonoma and Trugreen are consisted of in this classification.

Keep in mind that given that transactions and purchases are submitted and classified by the merchant, and not Bank of America, a few of your purchases may not fall into the classification that you would expect.

What is the Bank of America Cash Reward’s cash back structure?

With the Bank of America Cash Rewards, you can choose which classification to earn 3 percent money back on– gas, online shopping, dining, travel, drug shops or house improvement and furnishings. In addition to this, you’ll likewise earn 2 percent cash back at supermarket and wholesale clubs and 1 percent back on all other purchases.

Nevertheless, it’s crucial to keep in mind that there’s a $2,500 limit on integrated 2 and 3 percent classification purchases each quarter, then the rewards rate is up to 1 percent. If you’re able to reach this limit on 3 percent category purchases alone, you’ll make $75 in cash back per quarter, for a total of $300 in cash back per year. Plus, you’ll make 1 percent back on all costs after you reach the limit, indicating you could make even more in rewards.

The Bank of America Cash Rewards also consists of no annual charge and a welcome reward of $200 cash back after investing $1,000 within the very first 90 days after account opening, to name a few benefits.

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