If you're paying your taxes through Chexy, how the payment affects your rewards and fees depends on your card. Different issuers apply different policies to tax payments. This article covers two: BMO and Neo World Elite.

BMO does not treat tax payments the same way it treats standard purchases. Instead, these payments are categorized similarly to cash transactions. This distinction is set by BMO, not by Chexy, and it leads to two effects.

First, you do not earn points on tax payments. Because they're treated like cash transactions rather than regular purchases, they don't accumulate points the way standard spending does.

Second, a cash advance fee may apply. BMO may or may not charge one on a tax payment, at its own discretion, so Chexy cannot guarantee in advance whether the fee will be charged.

Neo World Elite works differently. Its 4% rate is driven by the merchant category code (MCC) attached to each transaction. The MCC identifies what type of payment a transaction is, and Neo uses it to decide whether the payment qualifies for a given rewards category.

Because of this, not all payments made through Chexy are categorized as recurring. A wellness payment, for example, may be treated as recurring, whereas a tax payment will not be. Since a tax payment isn't categorized as recurring, it will not earn the 4% rate.