In one of the biggest credit card rewards shakeups of 2026, Scotiabank has officially announced major revisions to its Momentum® credit card lineup. Effective October 22, 2026, rent payments (MCC 6513) and tax payments (MCC 9311) will NO LONGER qualify for the accelerated 4% recurring bill payment rate on the Scotiabank Momentum® Visa Infinite® Card. On Chexy, that covers rent, condo and strata fees, household expenses, property tax and income tax payments. Instead, these transactions will be downgraded to the baseline 1% purchase rate. For the thousands of Canadians using Chexy to pay rent and property taxes, this completely changes the math.
⚠️ Important Consideration
⚠️ Critical Deadline: You have until October 21, 2026 to earn 4% cash back on rent via Scotiabank Momentum. Starting October 22, 2026, transactions will earn only 1%, resulting in an automatic net loss of -0.75% after paying Chexy's 1.75% processing fee.
What Exactly Is Changing on October 22, 2026?
Scotiabank's notice to cardholders moves rental payments (MCC 6513) and tax payments (MCC 9311) out of the accelerated recurring payments category on every Momentum card. They earn each card's regular purchase rate instead (1% on the Momentum Visa Infinite+). Whether a given payment is affected depends on the merchant category code it posts under. Chexy has confirmed which of its payment types move to 1% and which stay at 4%:
| Payment Category | Current Rate (Until Oct 21) | New Rate (Effective Oct 22, 2026) | Chexy Fee Impact |
|---|---|---|---|
| Rent (MCC 6513 / Chexy / Landlords) | 4.0% cash back | 1.0% base rate | Net LOSS of -0.75% |
| Condo / Strata Fees (Chexy confirms 1%; on other platforms it depends on how the payment is coded) | 4.0% cash back | 1.0% base rate on Chexy | Net LOSS after Chexy fee |
| Property Tax (MCC 9311) | 4.0% cash back | 1.0% base rate | Net LOSS after processing fee |
| Income Tax: CRA, Revenu Québec (MCC 9311) | 4.0% cash back | 1.0% base rate | Net LOSS after processing fee |
| Utilities (Hydro, Electricity, Gas, Water) | 4.0% cash back | 4.0% cash back (UNCHANGED) | Remains profitable |
| Telecom & Internet (Rogers, Bell, Telus) | 4.0% cash back | 4.0% cash back (UNCHANGED) | Remains profitable |
| Insurance Premiums (Auto, Home, Life) | 4.0% cash back | 4.0% cash back (UNCHANGED) | Remains profitable |
| Daycare, Tuition & Gym Memberships | 4.0% cash back | 4.0% cash back (UNCHANGED) | Remains profitable |
Why the Scotiabank + Chexy Hack Is Dead After October
Historically, Canadians used Chexy to charge rent to their Scotiabank Momentum Visa Infinite. Because Chexy passed Visa recurring billing data, Scotiabank rewarded the transaction with 4% cash back. After subtracting Chexy’s standard 1.75% fee, cardholders walked away with a clean +2.25% net profit (or roughly $540 to $800+ in annual profit on average Canadian rents).
Starting October 22, 2026, Scotiabank will map Chexy’s rental merchant category (MCC 6513) to the 1% standard rate. If you continue using your Scotiabank card on Chexy after this date, the numbers flip against you:
| Monthly Rent | Scotia Earn (1%) | Chexy Fee (1.75%) | Monthly Net | Annual Net Loss |
|---|---|---|---|---|
| $1,800 / month | +$18.00 | -$31.50 | -$13.50 / mo | -$162.00 / year |
| $2,200 / month | +$22.00 | -$38.50 | -$16.50 / mo | -$198.00 / year |
| $3,000 / month | +$30.00 | -$52.50 | -$22.50 / mo | -$270.00 / year |
What Still Qualifies for 4% on the Scotiabank Momentum?
It is important to emphasize that Scotiabank is NOT eliminating the 4% recurring payments category entirely. It is specifically carving out real estate, rent, and taxes. You will still earn the accelerated 4% rate on standard recurring household bills up to the $25,000 annual combined category limit:
- Telecommunications: Monthly mobile phone plans (Rogers, Telus, Bell, Freedom, Fido, Koodo, Virgin Plus) and home internet/TV services.
- Household Utilities: Electricity, hydro, natural gas, municipal water (billed directly by the utility, not third-party rental managers).
- Insurance Policies: Automated recurring monthly or annual premiums for automotive, home, tenant, and life insurance.
- Childcare & Education: Licensed daycares, preschools, and recurring tuition institutions.
- Fitness & Wellness: Gym memberships (GoodLife, Anytime Fitness, YMCA) and wellness clubs.
- Streaming & Software: Netflix, Spotify, Apple One, Disney+, YouTube Premium, Amazon Prime recurring debits.
What Should Chexy Users Do Now? Best Alternative Strategies
If you use Chexy or plan to pay rent via credit card after October 21, 2026, switch your payment card on Chexy to one of these winning alternatives:
- 1.Strategy 1: Rogers Red World Elite Mastercard (Flat 2% Earn): With $0 annual fee, you earn 2.0% cash back on eligible purchases if you are a Rogers/Fido/Shaw customer (1.5% if you are not), up to a $61,000 annual spending cap, after which the rate drops to 1.5%. After Chexy's 1.75% fee, Rogers customers keep a small +0.25% net profit with no annual fee.
- 2.Strategy 2: American Express Cobalt® Card (Aeroplan Travel Power): Earns 1x Membership Rewards on rent and bill payments. If you transfer points 1:1 to Air Canada Aeroplan and value them at 1.8¢–2.2¢ each, 1x works out to roughly a 1.8% to 2.2% return, which is about break-even to slightly positive after Chexy's 1.75% fee. In your first year, rent also helps you hit the $750 monthly spend that earns the 1,250-point monthly welcome bonus (up to 15,000 points).
- 3.Strategy 3: Welcome Bonus Churning & Minimum Spend: Use your large monthly rent payment ($2,000+) on Chexy to easily hit the $3,000–$5,000 minimum spend requirements on new premium credit cards (e.g., TD Aeroplan Visa Infinite, CIBC Aventura, RBC Avion). The massive welcome bonuses far outweigh the 1.75% processing fee.
- 4.Strategy 4: Tangerine Money-Back Mastercard: Select "Recurring Bill Payments" as one of your 2% categories. With $0 annual fee, you earn 2% on recurring payments, leaving a modest 0.25% net profit after Chexy.
💡 Strategy Highlight
Set a calendar reminder for October 15, 2026 to log into your Chexy dashboard and update your default card before the October 22 cutoff to avoid getting charged 1.75% for a 1.0% reward.
Use our Credit Card Optimizer to recalculate your wallet's performance under the new Scotiabank rules and find your best alternative card.
