Do You Earn Rewards on Childcare and Daycare?
This guide explains how childcare payments earn, the welcome-bonus angle, and the surcharge to watch for.
How childcare earns rewards
When a daycare, preschool, nanny service, or after-school program accepts credit cards, paying by card earns your rewards like any purchase. Childcare is not a bonus category on mainstream rewards cards, so it typically earns your base rate, still worthwhile on a card with a strong flat rate. Many small providers, though, take only cash, check, or bank transfer, in which case there are no rewards to earn.
The welcome-bonus opportunity
Because childcare bills are large and recurring, they are a natural way to reach a welcome bonus minimum spend on a new card without changing your spending. Routing a few months of tuition through a new card’s bonus window can unlock a bonus worth far more than the base-rate rewards, following the approach in how to meet minimum spend.
Watch for the surcharge
The one caution is fees. Some providers pass a card-processing surcharge, often two to three percent, on to you, and on a large monthly bill that can equal or exceed your base-rate rewards. Check whether a fee applies before charging childcare, and if it does, weigh it against the rewards, or reserve card payment for hitting a welcome bonus where the bonus outweighs the fee, similar to medical bills. Note that dependent-care FSA funds are a separate, pre-tax way to pay.
- Childcare earns rewards when the provider accepts cards.
- It is not a common bonus category, so expect the base rate.
- Large recurring bills help meet a welcome-bonus spend.
- Some providers add a surcharge for card payments.
- A surcharge can offset your rewards.
Frequently asked questions
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