Many cards offer significant bonuses on purchases from qualifying grocery stores. Using these cards is a key strategy for maximizing returns from top cash-back credit cards.
If you have one of the best credit cards for groceries, it’s important to understand when you’ll earn bonus rewards for grocery shopping– and when you won’t. To figure that out, you must first understand how credit card issuers define grocery purchases.
Which credit cards earn rewards on grocery purchases?
Each credit card issuer defines grocery purchases a little differently; however, here’s what to expect from some of the major credit card issuers:
American Express
Several American Express cards earn bonus rewards at U.S. supermarkets. American Express defines a supermarket as a place that “offers a wide variety of food and household products such as meat, fresh produce, dairy, canned and packaged goods, household cleaners, pharmacy products and pet supplies.”
Some eligible examples include ALDI, FreshDirect, Meijer, ShopRite, Stop & Shop, Trader Joe’s, Vons, and Whole Foods.
They also state that superstores (such as Walmart and Target), convenience stores, warehouse clubs (such as Costo and Sam’s Club), and meal-kit delivery services are not considered supermarkets.
Bank of America
The card_name offers automatic 2% cash back at grocery stores, but their definition of grocery stores also includes “wholesale clubs, supermarkets, meat and seafood stores, candy, nut or confection stores, dairy stores, and bakeries.”
It’s notable that wholesale clubs is listed as an eligible category as most credit cards that offer bonus rewards on grocery purchases exclude purchases made at these stores.
Exclusions include superstores and smaller stores such as drug stores and convenience stores that sell groceries and other products.
Capital One
With the card_name, you can earn 3% cash back on grocery purchases. Capital One defines grocery stores as “supermarkets, meat lockers, freezers, dairy product stores and specialty markets.” Superstores such as Walmart and Target are excluded.
Chase
The card_name card earns 3X points on online grocery purchases. According to Chase, “this category includes purchases for grocery pickup and delivery that are placed online with grocery stores, specialty food stores or delivery service merchants that classify as grocery store merchants (excluding membership and subscription fees). Meal kit delivery services are included. Some merchants that sell grocery items are not included in this category; for example, larger stores that sell a wide variety of goods and groceries like Walmart and Target, wholesale clubs such as Costco and BJs, liquor stores and merchants that specialize in only a few grocery items.”
The Amazon card_name earns 5% at Whole Foods Market online and in-store with an eligible Prime membership. Exclusions include purchases made at international Whole Foods Markets and purchases of Whole Foods Market products and services made through third-party sites such as Instacart and Shipt.
Wells Fargo
Wells Fargo offers a few credit cards that offer bonus rewards on grocery purchases. Wells Fargo defines this category as including “grocery stores, supermarkets, delis and bakeries.”
What doesn’t count as grocery purchases?
Both American Express and Capital One are very clear as to what types of purchases don’t count as groceries. Both exclude superstores that sell food like Walmart and Target. So if you’re a big Walmart shopper, it’s best to focus on one of the best credit cards for Walmart. And American Express further specifies that the stores must be in the U.S. and that “superstores, convenience stores, warehouse clubs, and meal-kit delivery services are not considered supermarkets.” So, you shouldn’t expect to earn a grocery bonus from grocery purchases at 7-11 or Costco stores with an Amex card.
And while this is true of most major card issuers that offer bonuses for grocery store purchases, the exception is the card_name, which specifically includes wholesale clubs like Costco as qualifying for the bonus for grocery purchases. That said, if trips to Costco are regularly on your agenda, you might want to consider an option such as the card_name. Citi is a CardRatings advertiser.
➤ LEARN MORE:How merchant category codes affect credit card rewards
Tips for maximizing rewards on grocery purchases
Make sure that your purchases count towards the bonus. Before concluding that your favorite grocery store qualifies for bonus rewards, you need to verify it. Once you’ve made a purchase at the store, you should be able to check your statement online to see if you received a bonus. But if it’s not immediately apparent, you can always call the card issuer and ask for more information.
Check to see if your credit card has annual limits on qualifying grocery store purchases. Some credit cards impose annual limits on the amount of grocery store purchases that qualify for a bonus. Once you exceed those limits, the remainder of your purchases will only receive the same amount of points, miles or cash back as any other purchase, typically 1%. For example, the card_name discontinued_disclaimer offers 6% cash back at U.S. supermarkets, but only 1% once you’ve made $6,000 in qualifying purchases in a calendar year. American Express is a CardRatings advertiser.
Maximize your grocery store purchases. A typical U.S. supermarket offers far more than just groceries, but you’ll still receive your bonus for any purchase made from a qualifying store. If you have a card that offers you a bonus at your supermarket, consider shopping there for other things such as flowers, prescription drugs, toiletries, cleaning supplies and gifts. In fact, you can also often buy seasonal items at supermarkets like holiday decorations, grills and outdoor furniture.
Frequently asked questions about grocery store credit cards
Is Target a grocery store?
Even though many Target stores sell food, most credit card issuers will not consider it to be a grocery store or supermarket, and you usually won’t receive any bonus rewards when shopping there.
Is Walmart a grocery store?
Even though many Walmart stores sell food, most credit card issuers will not consider it to be a grocery store or supermarket, and you usually won’t receive any bonus rewards when shopping there.
➤ LEARN MORE:Which credit cards earn cash back at Walmart and Target?
Is Costco a grocery store?
Even though Costco stores sell food, most credit card issuers will not consider it to be a grocery store or supermarket, and you won’t receive any bonus rewards when shopping there. The exception is the card_name, which specifically includes wholesale clubs like Costco as qualifying for the bonus for grocery purchases.
➤ LEARN MORE:Best credit cards for wholesale clubs
The bottom line on grocery store credit cards
It’s possible to earn very valuable credit card rewards for the grocery store purchases that you make each week, but it’s not always a sure thing. By understanding how credit card issuers define grocery purchases, and by making sure to shop at qualifying stores, you can earn more cash back and travel rewards from your credit cards than ever before.
