The fee comes first
Electricity, gas and water providers often use a third-party processor that charges a flat or percentage fee for card payments.
A 2.5% fee on a bill paid with a 2% card loses money.
Phone, internet and streaming providers usually accept cards with no fee, so they are the easy wins.
How bills code
Utilities carry a utilities code. Phone and internet carry a telecommunications code.
Some cards include utilities, phone or internet in a bonus category. Others pay the base rate.
Payments through a third-party processor sometimes code as the processor, not the utility.
When it is worth it
If the provider charges no fee, pay by card and use the card with the best rate for that code.
If there is a fee, compare it with the reward. Pay by bank transfer if the fee is larger.
A fee can be worth paying when you need the spend to meet a sign-up bonus requirement.
