While no one likes to discuss medical bills, we have to deal with it at some point in life. Whether it’s as serious an operation as a life-saving operation or something a little more harmless like a Lasik, these high expenses are usually in the four to five digit range.
This then begs the question: what is the best credit card for such pocket burners?
How are medical transactions encoded?
The first thing we need to do is determine exactly what type of medical treatment we are talking about. The possibilities are diverse and range from hospitals to dentists, physiotherapists, opticians and all kinds of medical care.
Here is the range of Merchant Category Codes (MCC) * that Medical Transactions may fall under:
- MCC 8011: Physicians and Physicians (Not Elsewhere Classified)
- MCC 8021: Dentists and Orthodontists
- MCC 8031: Osteopaths
- MCC 8041: Chiropractor
- MCC 8042: Optometrists and Ophthalmologists
- MCC 8049: Podiatrists and Podiatrists
- MCC 8050: Nursing and personal care facilities
- MCC 8062: Hospitals
- MCC 8071: Medical and Dental Laboratories
- MCC 8099: Medical Services and Physicians (Not Elsewhere Classified)
* An MCC is a four-digit code that card associations such as Visa and Mastercard use to classify a merchant’s primary line of business.
The importance of the customer center is that banks explicitly exclude credit card rewards for a specific customer center. Knowing the customer center in advance will help you choose the right card. If you have any doubts about a particular merchant’s customer center, you can look it up using the Visa Supplier Locator.
In general, you shouldn’t have any problems with any of the MCCs mentioned above, except for the MCC 8062. Swipe your usual card when you go to the dentist or get a new pair of lenses made by the optician – you’ll get rewards as per normal.
The problematic one is MCC 8062, which covers polyclinics and hospitals (both private and public).
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Such institutions usually pay a reduced processing fee, which makes transactions less profitable for the bank and the payment processing company. Therefore, some banks have excluded these transactions from earning miles, points or cashback.
Which credit cards receive rewards for MCC 8062?
Here’s what I put together by going over various banks’ shop policies. Unfortunately, a growing number of banks are now excluding the MCC 8062 from earning rewards, regardless of whether it is a private or public entity.
| Bank | Reward points for MCC 8062? |
| American Express | Yes |
| Bank of China | No |
| Citibank | Yes |
| DBS | No |
| HSBC | Yes |
| Maybank | Yes |
| OCBC | No (except OCBC VOYAGE and OCBC Premier Visa Infinite) |
| Standard Chartered | Yes |
| UOB | No (except UOB Reserve, UOB Visa Infinite Metal Card and UOB Absolute) |
The banks that continue to offer rewards for MCC 8062 are American Express, Citibank, HSBC, Maybank, and Standard Chartered.
Therefore, the following miles and points cards come into question:
| map | Earnings rate |
| UOB reserve | 1.6 mpd |
| Read the LAST | 1.6 mpd |
| Standard Chartered Visa Infinite | 1.4 mpd * |
| Citi Prestige card | 1.3 mpd |
| Unlimited HSBC Visa | 1.25 mpd ^ |
| Read PremierMiles | 1.2 mpd |
| Standard Chartered X Card | 1.2 mpd |
| AMEX KrisFlyer Ascend | 1.2 mpd |
| AMEX KrisFlyer credit card | 1.1 mpd |
| * Spend at least $ 2,000 in any billing month ^ Must spend at least $ 50,000 in previous membership year |
The best earnings rates can be found on the UOB Reserve and Citi ULTIMA cards, but both require you to make at least $ 500,000 per year to qualify!
A more realistic range is 1.1-1.4 mpd. This may not sound very exciting, but don’t forget that you can also use a large medical bill to take advantage of sign-up bonuses.
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For example, new Citi PremierMiles Card members who spend $ 9,000 in the first three months of approval can earn up to 45,000 miles, while new AMEX KrisFlyer Ascend members who spend $ 5,000 in the first three months can earn up to 21,000 miles plus a free stay at the Shangri-La Singapore.
| map | Earnings rate |
| UOB Absolute Cashback Card | 1.7 percent |
| AMEX real cashback card | 1.5 percent |
| Standard Chartered Unlimited Cashback | 1.5 percent |
Assuming the medical facility accepts American Express cards, you can also use the AMEX True Cashback Card or the UOB Absolute Cashback Card for 1.5 percent and 1.7 percent cashback, respectively, with no minimum spend or cap.
Again, this is not a very high percentage, but it can add up to a large bill.
The GrabPay alternative
In the event that the medical facility does not accept American Express cards, there is still a practical way to get cashback on your bill.
You can use the AMEX True Cashback Card or the UOB Absolute Cashback Card to fund a GrabPay account and earn 1.5 percent and 1.7 percent cashback, respectively.
You can then easily pay the bill with your GrabPay Mastercard. Note that you will not earn GrabRewards points on transactions made at MCC 8062 (hospitals) and there is an annual transaction cap of $ 30,000 on the GrabPay Mastercard.
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Conclusion
While it is becoming increasingly difficult to earn rewards for transactions in hospitals and polyclinics, the good news is that it is not impossible.
If you have a treatment facility to choose from, it makes sense to check with the MCC beforehand so that you know which card will give you the highest discount. And while you’re at it, check out some of the best insurance plans to keep you medically covered.
This article was first published on SingSaver.com.sg.
