CardUp, a digital bill payment platform, has increased its standard service fees to a range of 2.25% to 2.9%, up from the previous 1.73% to 2.6% structure. This adjustment impacts users who utilize the service to earn credit card rewards on expenses typically excluded from standard points, such as rent, taxes, and insurance. According to company fee schedules, users can mitigate these costs by utilizing specific promotional codes, though the overall landscape for cost-effective mileage accumulation has narrowed compared to bank-direct platforms like Citi PayAll.
How Does CardUp Impact Your Rewards Strategy?
CardUp functions by allowing users to pay bills via credit card that would otherwise require bank transfers or cash. The platform charges your card for the bill amount plus an administrative fee, then remits the payment to the recipient. You earn credit card miles on the total transaction, including the fee. According to the platform’s terms, the cost per mile is determined by dividing the admin fee by the total miles earned. Since these transactions code as MCC 7399 (Business Services Not Elsewhere Classified), they remain eligible for rewards on most general spending cards, excluding specific issuers like BOC, HSBC, and DBS/UOB-issued American Express cards.
Why Have Use Cases for CardUp Narrowed?
The recent fee hike effectively increases the “buy price” of your miles. When CardUp fees sat near 1.73%, the barrier to entry for generating miles on overheads like condo management fees or helper salaries was significantly lower. Now that base fees have climbed toward the 2.9% ceiling, users must be more selective. In many instances, in-house bank platforms such as Citi PayAll or Standard Chartered EasyBill offer lower processing fees for similar transactions. Financial analysts suggest that users should cross-check these bank-specific portals before committing to a CardUp transaction to ensure they are securing the lowest possible cost per mile.
Are There Still Ways to Lower Transaction Fees?
Yes, CardUp continues to release promotional codes that can lower the effective fee for specific payment categories. For instance, using the code MLTAX26R allows users to pay recurring personal income tax at a 2.25% fee through December 2026. Similarly, the 3HOME2026 code provides a tiered fee structure (2.28% to 2.33%) for new recurring home-related payments, including mortgage and rent. These codes are restricted to locally-issued Visa cards and typically require scheduling payments well in advance of the due date.
| Promo Code | Fee | Category |
|---|---|---|
| MLTAX26R | 2.25% | Income Tax |
| MILELION | 2.30% | First-time users |
| OFF259 | 2.59% | AMEX/MC Payments |
Frequently Asked Questions
- Do CardUp payments contribute to credit card sign-up bonuses?
Generally, yes. However, DBS cards are a notable exception; while they earn base miles, they do not count toward the minimum spend requirements for welcome offers. - Can I earn 4 mpd on specialized spending cards?
No. CardUp transactions will only earn the standard earn rate applicable to general spending. - What happens if a bank representative says I won’t earn points?
Customer service officers may be unfamiliar with third-party payment platforms and often provide incorrect information based on the category of the bill (e.g., insurance). You should rely on the card’s MCC classification rather than verbal advice from a representative.
Stay Informed on Credit Card Strategies
Are you currently using third-party platforms to maximize your miles, or have the recent fee hikes changed your approach? Share your experiences in the comments below, or subscribe to our newsletter for the latest updates on credit card rewards and financial optimization tips.
