From what I can see, the Costco membership fee is still not recognized as recurring payment?
The original payment only has 1% cashback and the rewarded adjustment is $2.29 which doesnât match with Costcoâs $147 membership fee.
And it would be great if we can know what are included in the rewarded adjustment.
You can see the MCC code list to know what is going to be included in the new system and what isnât here. Rent is definitely outside and it looks like your internet provider is sending a service-related MCC code, normally that shows up as âTelecom Servicesâ. You can request they review which code theyâre sending, although itâs unlikely theyâll bother switching it, unfortunately.
Is Costco membership isnât showing up as a recurring payment now, it will not shop up in the future unless they change their MCC coding. The top-up is calculated to be the most user-friendly it can be, essentially:
We calculate how much
- you would have earned on the old system.
- We calculate how much you actually earned on the new system.
- If the old system was more lucrative, we credit the different.
This will be a two-month top-up for Quebec and just a one-time thing for the rest of Canada. Does that answer your question?
It was recognized as recurring last year.
So basically, it wonât be recognized as recurring from now on unless they change the MCC?
Will this be the same for other recurring bill? The charge might be set as recurring but because the MCC is not what the new system is expecting, then it will just be an everything else payment?
@GrantLahring_Neo Just looking for a bit of clarification.
My Costco annual membership is due for renewal on July 24 (to the best of my knowledge), and the renewal amount should be $146.90.
Based on your comment, are we saying that this membership renewal wonât qualify as a recurring payment unless Costco changes its MCC coding? If so, it would be great to know in advance so I can decide which card to use for the renewal.
Yeah, it wonât be changed unless they update the MCC. And yes again, the old system looking for a flag that said ârecurringâ on the transaction. We are switching away from this because it was insanely unreliable. For example something like 60% of telecom transactions were coming through with the recurring flag⌠when pretty much all of them are stable monthly bills, people were understandably upset that they werenât getting the cashback they expected. The new system is MCC based, so as long as merchants donât constantly switch codes, it should be more reliable.
Yeah, the smart money says that your charge will have the same code as @linkfang 's and it will only be eligible for the everything else cashback. If you really want to optimize, it might be a good chance to review Juneâs transactions and see which ones are going it which categories.
I guess Iâll have to reach out to Les Sommets to ask them to charge future instalments to one of my other cards instead.
Any chance Neo would consider adding MCC 5960 (or whatever CAA Insurance uses) to the recurring payments category? If not, I guess Iâll have to change my insurance billing info too.
Iâm so glad I agreed to pay a surcharge to spread the payments out if that makes it so they DONâT qualify as recurring payments.
Itâs honestly so weird they wouldnât be using 6300: Insurance. That one we explicitly included. We can look into it, but weâd probably want to see more people with the issue before updating everything, unfortunately.