The Loyalty Landscape is Shifting: Are Miles on Utilities a Relic of the Past?

Just 1.3% of credit card rewards programs still offer benefits on utility payments, a dramatic decline from 22% in 2018. As banks increasingly exclude these essential bills from earning potential, consumers are facing a stark reality: the days of effortlessly accumulating miles while paying for electricity and water are rapidly disappearing. This isn’t just about utilities; it’s a bellwether for a broader trend of diminishing rewards on everyday spending.

The Vanishing Rewards: Understanding the MCC Code

The core of the problem lies in the Merchant Category Code (MCC). Utility bills consistently code as MCC 4900 (Utilities: Electric, Gas, Heating Oil, Sanitary, Water), regardless of whether you’re billed directly by your provider or through SP Group. Knowing this code is crucial, but it doesn’t guarantee rewards.

Unsure of a transaction’s MCC? Here’s a quick comparison of verification methods:

While HeyMax offers a solid baseline for reliability, the DBS digibot remains a viable, albeit slightly more complex, option.

It’s also important to note that telco bills (MCC 4814) are distinct from utilities and often *do* qualify for rewards, provided you avoid setting up recurring payments.

The Current Landscape: Limited Options for 2025

As of mid-2025, the options for earning miles directly on utility bills are dwindling. Chocolate Finance’s Visa Card remains the sole issuer offering rewards – a meager 1 Max Mile per S$1 spent, capped at just 100 miles per month, shared across all bill payment categories. This limited offering underscores the severity of the situation.

The Rise of Bill Payment Platforms: A Cost-Benefit Analysis

Faced with limited direct rewards, consumers are increasingly turning to bill payment platforms like CardUp and Citi PayAll. These services allow you to pay bills with your credit card, effectively “buying” miles with an administrative fee. However, the value proposition requires careful consideration.

Here’s a breakdown of the costs and potential returns:

Keep in mind that CardUp doesn’t support SP Group payments, and SC EasyBill doesn’t support utility bills at all. Whether these fees are worthwhile depends entirely on your personal valuation of a mile. For example:

• A DBS Vantage Cardholder using CardUp (2.35% fee) could earn 1.5 mpd, equating to 1.53 cents per mile.
• A Citi Prestige Cardholder using Citi PayAll (2.1% fee) could earn 1.3 mpd, equating to 1.62 cents per mile.

The “gold standard” remains earning miles for free, but as banks continue to tighten restrictions, these fee-based options may become the only viable path.

Cashback as a Viable Alternative

With miles becoming increasingly difficult to earn on utilities, cashback cards are emerging as a compelling alternative. Here’s a quick overview:

• AMEX True Cashback Card: 1.5% cashback
• OCBC 365 Credit Card: 3% cashback on recurring electricity bills (subject to minimum spend and cap)
• UOB Absolute Cashback Card: 0.3% cashback
• UOB EVOL Card: 1% My Green Credits for SP Utilities bills via the SP app
• UOB One Card: Earn cashback and meet spend requirements for UOB One account interest

Furthermore, consider leveraging utility bills to meet minimum spending requirements for cards like the Citi Prestige, even if the transactions themselves don’t earn points.

Looking Ahead: The Future of Utility Rewards

The impending exclusion of utilities by Maybank on December 1, 2025, signals a broader trend. Banks are prioritizing profitability and shifting rewards towards categories where they retain greater control. We anticipate further erosion of rewards on essential bills, potentially leading to a tiered system where only premium cardholders enjoy limited benefits. The future may see a greater emphasis on partnerships between utility providers and specific financial institutions, offering exclusive rewards programs. Consumers will need to become increasingly strategic in their credit card usage, carefully evaluating the cost of “buying” miles versus the benefits of cashback.

What are your predictions for the future of credit card rewards on essential bills? Share your insights in the comments below!