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Earning Avios for paying your council tax – and other utilities

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Your council tax bill for 2017/8 will be dropping through your letterbox in the next few days. Earning Avios or other points by paying your day-to-day bills is something that a lot of people ignore.

Unfortunately, because of the huge range of utility companies, it is difficult to write a detailed post on paying utility bills by credit card. I have been doing this for years, though, when I can. There are a couple of things always worth remembering:

Some utility companies keep quiet about their willingness to take credit cards. Thames Water bills do not mention that they accept Visa or Mastercard credit cards. They presumably want to avoid paying the processing cost if they can. Yet, head over to the Thames Water website and you’ll see that Visa and Mastercard credit cards are accepted – with NO surcharge.

Some companies do add a surcharge for paying with a credit card. You need to do the maths to see if it is worthwhile.  When we had Sky for our broadband, there was a 50p credit card surcharge.  Depending on what card you pay with, these small surcharges may be worthwhile.

Most interesting, though, is this one: It seems, very occasionally, that some companies who do NOT take credit cards do let the odd one slip through. My local authority is Kensington & Chelsea. They are adamant that only debit cards are accepted for online payment – the website says:

“we accept British-issued debit cards for Mastercard and Visa and Switch, Solo, Visa Electron, Delta and Maestro Debit cards”

However, for the last five years, I successfully used my bmi Mastercard (RIP) or my Marriott MasterCard to pay my bill.  This is very attractive for me as there is no surcharge at all.

It doesn’t work with all cards. I once tried using a Tesco Mastercard and the system recognised, correctly, that it was a credit card and not a debit card. I have no idea why some cards work – presumably there is a database somewhere that tells the payment system which cards are credit cards, and some must have been missed off.

It is all very odd, when you think about it.  Because of the cut taken by the card processor, my council presumably receives less money than it is expecting.  I am credited with having paid the full amount, however, and the council clearly never bothers to try to reconcile the difference.

If you have any interesting stories about settling utility bills on points-earning plastic, please post them below.

PS.  There is an interesting loophole in using PayPoint to pay bills.  Most Co-Op stores have a PayPoint terminal which you can use to settle council tax or other bills.  For some odd reason, the Co-Op has never clamped down on the use of credit cards with PayPoint.  Reportedly (I’ve never tried it myself) you can use this facility with an Amex or other credit card and the staff are unlikely to stop you.  Depending on your council or the utility involved, you may need to request a PayPoint payment card first which can be scanned in.


How to earn Avios points from UK credit cards

How to earn Avios from UK credit cards (June 2022)

As a reminder, there are various ways of earning Avios points from UK credit cards.  Many cards also have generous sign-up bonuses!

In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards.

Until 18th July 2022 there is an astonishing special offer on these cards. You get 50,000 Avios on the Avios Plus Mastercard and 10,000 Avios on the free Avios Mastercard. You can apply here. We strongly recommend getting the Avios Plus card whilst this offer is running.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus card

Barclaycard Avios Plus Mastercard

50,000 Avios for signing up (A CRAZY SPECIAL OFFER!) and an upgrade voucher for spending ….. Read our full review

Barclaycard Avios card

Barclaycard Avios Mastercard

10,000 Avios for signing up (SPECIAL OFFER) and an upgrade voucher for spending £20,000 Read our full review

There are two official British Airways American Express cards with attractive sign-up bonuses:

British Airways BA Premium Plus American Express Amex credit card

British Airways American Express Premium Plus

25,000 Avios and the UK’s most valuable card perk – the 2-4-1 voucher Read our full review

British Airways BA Amex American Express card

British Airways American Express

5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £12,000 Read our full review

You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points.

SPECIAL OFFER: The sign-up bonus on Amex Gold is increased from 20,000 Membership Rewards points to 30,000 Membership Rewards points until 19th July 2022. This card is free for the first year.

American Express Amex Gold

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & two airport lounge passes Read our full review

American Express Platinum card Amex

The Platinum Card from American Express

30,000 points and an unbeatable set of travel benefits – for a fee Read our full review

Run your own business?

We recommend Capital On Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,000 Avios.

Capital On Tap Business Rewards Visa

10,500 points bonus – the most generous Avios Visa for a limited company Read our full review

You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.

British Airways Accelerating Business American Express card

British Airways Accelerating Business American Express

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review

There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.

Amex Platinum Business American Express

American Express Business Platinum

40,000 points sign-up bonus and a long list of travel benefits Read our full review

American Express Business Gold

20,000 points sign-up bonus and free for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.

(Want to earn more Avios?  Click here to visit our home page for our latest articles on earning and spending your Avios points and click here to see how to earn more Avios this month from offers and promotions.)

Comments (149)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Roger says:

    Is there any way to pay council tax using Amex credit card with using council’s sort code and account number?

    I know this may sound weird but not sure when you cancel card, Amex always says that make sure you cancel all your standing order, subscription etc. So just trying to figure out how can one setup payment from credit card with a payment going to a sort code and account number?

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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