By LaToya Irby11 Transactions That Don’t Earn Credit Card Rewards
By LaToya Irby
Quick Answer
Even with the best rewards credit cards, not all credit card transactions earn rewards. Most card issuers exclude interest, fees, balance transfers and cash advances from rewards earning. Depending on your card issuer, several more transactions may not earn cash, points or miles.
A rewards credit card is a great way to get more value from purchases you would have made anyway. Some credit card transactions won't earn rewards, however. Let's go over which types of purchases won't net you cash back, rewards points or miles.
1. Cash Advances
If you need cash, you can take a cash advance by borrowing against your credit limit and withdrawing money at the ATM or using a convenience check sent by your credit card issuer. You'll be charged a cash advance fee, and the cash advance is subject to a higher interest rate. There's no grace period with cash advances, so you could be charged interest even if you pay off your balance before the end of the month.
Not only are cash advances expensive transactions, but they don't earn rewards. This also includes cash equivalent transactions such as wire transfers and peer-to-peer money transfers.
Best rewards cards of 2026
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Citi Double Cash® Card
Intro APR:0% for 18 months on Balance Transfers
Ongoing APR:18.24% - 28.49% (Variable)
Rewards:
2% (cash back)
Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
Annual Fee:$0
The opensky® Secured Visa® Credit Card
Ongoing APR:23.89% Variable
Rewards:
10% (cash back)
Earn up to 10% cash back on purchases made with your opensky Secured Visa Credit Card at 40,000+ retailers. Visit opensky Rewards in the opensky app for participating retailers. Learn more at openskycc.com. See Rewards Terms and Conditions for more information.
Annual Fee:$35
Credit One Bank® American Express® for Rebuilding Credit
Ongoing APR:29.74% Variable
Rewards:
1% (cash back)
Earn 1% cash back rewards on eligible gas, grocery purchases and mobile phone service, internet, cable and satellite TV services, terms apply
Annual Fee:$75 First year. $99 thereafter, billed monthly at $8.25
Blue Cash Preferred® Card from American Express
Intro bonus:
As High As $300 Cash Back. Find Out Your Offer.
You may be eligible for as high as $300 cash back after spending $3,000 in purchases on your new Card in the first 6 months. Welcome offers vary and you may not be eligible for an offer. Cash back is received as Reward Dollars, redeemable for statement credit or at Amazon.com checkout. Terms Apply.
Intro APR:0% on Purchases and Balance Transfers for 12 months
Ongoing APR:19.49%-28.49% Variable
Rewards:
1% - 6% (cash back)
Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
Annual Fee:$0 intro annual fee for the first year, then $95.
AT&T Points Plus® Card from Citi
Intro bonus:
$200
Earn a $200 statement credit after you spend $1,000 on purchases in the first 3 months of account opening.
Ongoing APR:19.49% - 27.49% (Variable)
Rewards:
1x - 3x (Points per dollar)
Earn 3 ThankYou® Points for every $1 spent at gas and EV charging stations. Earn 2 ThankYou® Points for every $1 spent at grocery stores and 2 ThankYou® Points for every $1 spent on AT&T products and services. Earn 1 ThankYou® Point for every $1 spent on all other purchases.
Annual Fee:$0
First Progress Prestige Secured Mastercard® Cash Back Rewards
Ongoing APR:13.49% Variable
Rewards:
1% - 10% (cash back)
Earn up to 10% Cash Back on everyday purchases at participating dining, grocery, retail, and other eligible merchants, plus 1% Cash Back on payments made to your First Progress Card.^^
Annual Fee:$49
Hilton Honors American Express Aspire Card
Intro bonus:
200,000 Points
Best Points Offer Yet! Earn 200,000 Hilton Honors Bonus Points with the Hilton Honors American Express Aspire Card after you spend $6,000 in purchases on the Card within your first 6 months of Card Membership. Offer ends 01/13/2027.
Ongoing APR:19.49%-28.49% Variable
Rewards:
3x - 14x (Points per dollar)
Earn 14X Hilton Honors Bonus Points when you make eligible purchases on your Card directly with hotels and resorts within the Hilton portfolio. Card Members can earn 7X Points on purchases of Flights booked directly with airlines or flights booked through American Express Travel, Car rentals purchased directly from select car rental companies, and purchases at U.S. Restaurants. Card Members can earn 3X Points on all other eligible purchases.
Annual Fee:$550
Ollo Everyday Rewards
Ongoing APR:23.99%-29.99% Variable
Rewards:
1% - 3% (cash back)
Unlimited 3% cash back on all gas stations and EV charging stations, grocery store and drugstore purchases. Unlimited 1% cash back on all other purchases.
Annual Fee:$0
See all our best rewards credit cards for 2026.
2. Balance Transfers
Balance transfers don't earn rewards, but you could still get a lot of value from moving a balance from one credit card to another to save money on interest. Taking advantage of a 0% promotional intro offer could give you 12 to 21 months to pay off your balance without being charged any interest. You will pay a balance transfer fee—typically 3% or 5% of the transfer amount—so keep this in mind to make sure you'll ultimately save on interest before moving a balance.
3. Fees
Credit card fees charged for transactions like cash advances or balance transfers, or as penalties for late payments, do not earn rewards. Not only do fees fail to earn rewards, but they can also erode the value of the rewards you do earn. Recurring fees like an annual fee should be weighed against the potential rewards you can earn. It's important to consider whether the rewards benefits outweigh the costs of any fees you pay.
4. Interest Charges
Credit card interest accrues when you carry a balance from month to month. Unlike purchases charged to your account, interest charges don't earn rewards. Like fees, interest charged can lower the value of the rewards you earn.
If your goal is to earn rewards on your credit card, paying your balance in full each month is important. Otherwise, you may have to spend more to earn enough rewards to offset the cost of interest you've paid.
5. Insurance Premiums
Insurance premiums are a pretty significant expense for many families. Unfortunately, you may not be able to earn rewards on your premium payment. Before you pay your next insurance premium with your credit card, check the list of exclusions to see whether your purchase qualifies for rewards.
6. Taxes and Government Fees
You may be charged a convenience fee if you use your credit card for taxes or fees paid to the government. Additionally, some credit cards do not offer rewards on these transactions, which makes it an expensive payment option. Using another payment method—one that doesn't charge fees—is usually better for these transactions.
7. Gift Cards and Prepaid Cards
Gift cards and prepaid cards can make convenient gifts or budgeting tools. If you're thinking about using your credit card to buy one of these, note that some credit card issuers consider gift cards and prepaid cards as a cash equivalent transaction. As such, these purchases won't earn rewards.
8. Purchases Above the Earning Cap
Some credit cards offer a higher amount of rewards on certain purchases, but only up to a certain amount. For instance, you may earn 5% back on travel purchases capped at $5,000 annually. Once you hit the earning cap, further purchases in the same category may either not accrue rewards or only earn at the base rate, often just 1%. Your rewards program terms will outline whether you earn rewards after hitting the earning cap (if you have one).
9. Purchases Outside the Bonus Categories
While bonus category purchases earn rewards at a higher rate, purchases outside the bonus categories may not earn rewards at all or may only earn at the base rate, which might be just 1%.
Unfortunately, some purchases may not be categorized as rewards-earning depending on how the merchant handles the transaction. For instance, you may miss out on bonus rewards if the merchant uses a third party to process or submit your transaction. If you run into this situation, make a mental note to avoid this specific merchant for future bonus rewards purchases.
10. Purchases Made With Points
Once you've accumulated enough rewards, you have the flexibility to redeem them for cash back, travel, gift cards, merchandise and more. However, when you use points to pay for a purchase, in part or in full, you may not earn additional rewards, even if the purchase would typically qualify for rewards. You'll need to weigh whether it makes more sense to use your rewards or to make the purchase using your credit card as usual and save your points for a future redemption.
11. Returned Purchases
While your initial purchase may have already earned rewards, returning the purchase for a refund to your credit card may result in those rewards being deducted from your rewards balance. If you've already redeemed rewards earned from the purchase you're returning, it could lead to a negative rewards balance. To keep your rewards, consider opting for a store card or gift card instead of a refund to your credit card.
The Bottom Line
While most credit card issuers don't offer rewards on cash advances, balance transfers, fees and interest, other exclusions vary by card issuer. You can review your credit card's rewards guide to learn which transactions may not qualify for rewards or may not earn at the bonus rate.
If you're shopping for a new rewards credit card, keep in mind you typically need good to excellent credit to qualify for the best rewards credit cards. Check your credit score before you start shopping around to see where you stand. That way, you can narrow your search to the credit cards that fit your credit profile—or take time to improve your credit—and apply for your best match.
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About the author
LaToya Irby
LaToya Irby is a personal finance writer who works with consumer media outlets to help people navigate their money and credit. She’s been published and quoted extensively in USA Today, U.S. News and World Report, myFICO, Investopedia, The Balance and more.
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