Best credit cards for recurring bills
Bills are the best category in the game: predictable, unavoidable, immune to temptation, and big enough that 4% vs 2% is real money. Here's the field at $800/month of household bills — caps applied, issuer category definitions noted.
Verified at the issuer · June 12, 2026
Annual earnings on $800/month of bills
| Card | Bills rate (with its cap) | Annual value | The catch |
|---|---|---|---|
| Scotia Momentum VI ($120) | 4% recurring payments, to $25,000/yr | $384 | The category leader — the cap never binds on bills |
| Neo World Elite ($149) | 4% recurring — monthly cap unpublished | Up to $384 | Cap visible only in the app; fee also disputed in Neo’s own docs |
| BMO Ascend WE ($150) | 3× points recurring, to $10,000/yr | $288 in points (travel value) | $192–288 depending on redemption |
| MBNA Rewards WE ($120) | 5 pts/$1 utilities & memberships, to $50,000/yr | $480 travel / $240 cash | Categories are utilities + memberships, narrower than “all bills” |
| BMO CashBack WE ($139) | 2% recurring, to $500/statement | $120 (cap bites at $500/mo) | The cap halves it for bigger households |
| CIBC Dividend VI ($120) | 2% recurring payments | $192 | Rides along with the 4% gas/grocery engine |
| Meridian VI Cash Back ($99) | 2% utilities, to $25,000/yr | $192 (utilities only) | Ontario members only |
| Tangerine ($0) | 2% as a chosen category, uncapped | $192 | The free option |
The verdict: Scotia Momentum owns this category — 4% with a cap that can't realistically bind, on the same card that pays 4% on groceries. The full household math shows how the combination stacks up.
Frequently asked questions
What counts as a "recurring payment"?
Pre-authorized charges the merchant codes as recurring: utilities, phone/internet, streaming, insurance premiums, gym memberships, subscriptions. The fine print varies — MBNA bonuses "utilities" and "memberships" specifically (narrower), Meridian bonuses utilities only, while Scotia's and Neo's categories are the broad recurring-payment code. One statement cycle tells you how your actual bills code; insurance premiums and government payments are the most common surprises.
Why are bills the best category to optimize?
Because they're predictable and unavoidable — $700–$1,000/month leaves a typical household whether or not anyone thinks about it, the caps rarely bind (Scotia's $25,000/yr cap needs $2,083/month of bills), and there's no temptation effect: optimizing bills doesn't make you spend more, unlike dining or shopping multipliers. It's also retirement-proof — the spending mix that survives every life stage. Momentum's 4% on bills plus 4% groceries covers the two biggest recurring lines in one card.
Is it safe to put everything on pre-authorized card payments?
Safer than bank-account debits, in one specific way: a disputed card charge is the issuer's problem under zero-liability rules, while a wrong bank debit is your money gone while you argue. Two disciplines: keep the card's statement on auto-pay-in-full from your chequing (a missed payment costs more than a year of rewards), and when a card is reissued after fraud, the recurring merchants need updating — keep a list.
Do utility companies charge credit-card fees?
Some do — municipalities, property-tax portals and a few utilities pass through 1.5–2.5% "convenience fees" that erase any reward. The test is simple: a 4% card beats a 1.75% fee, but a 2% card doesn't. Where fees apply, pre-authorized bank debit wins; where they don't (telecom, streaming, insurance almost never charge), the card should carry every bill it can.
Educational comparison, not credit advice. Rates, caps and category definitions verified at issuer pages on June 12, 2026; merchant category coding determines what actually earns the bonus — check one statement cycle. Dollar figures are our arithmetic at the stated spend.