In this knowledgeable guide, we’re going to explore the best credit card for groceries that offer the best rewards for your grocery spending. Whether you’re a savvy shopper or just looking to maximize your savings, choosing the right credit card can make a significant difference in your monthly grocery bill. We’ve done the research and compiled a list of the top credit cards to help you make an informed decision.
Grocery Shopping Bliss
Grocery shopping is a regular expense for most households, and it’s an area where you can earn valuable rewards and cashback. We conducted a poll to gather insights from our community on the best credit cards for grocery spending. The responses were overwhelming, and we’ve distilled that information into this ultimate guide.
In this guide, we’ll cover 18 credit cards that offer exceptional rewards for grocery purchases. We’ll start with no annual fee cards and progressively move to cards with higher annual fees, please be aware about how credit card work. While we can’t cover every card available, we’ve included the major players and some lesser-known gems that can help you save on your grocery expenses.
AAA Daily Advantage Card
Cashback: 5% on grocery store purchases
Annual Fee: None
The AAA Daily Advantage Card is a fantastic option for those who want to earn cashback on grocery spending without an annual fee. This card offers a generous 5% cashback on grocery store purchases, with a spending cap of $10,000 in the calendar year. This cap is also shared with a 3% multiplier for Wholesale Club and gas purchases. You don’t need to be an AAA member to apply for this card, but availability may vary by location.
You can redeem the cashback earned from this card as a statement credit, through direct deposit, for gift cards, or for AAA merchandise or travel. With its high grocery store multiplier and no annual fee, this card is a strong contender for saving on your grocery bill.
Chase Instacart Card
Cashback: 5% on Instacart app and instacart.com purchases
Annual Fee: None
If you prefer the convenience of grocery delivery, the Chase Instacart Card is an excellent choice. It offers 5% cashback on purchases made through the Instacart app and instacart.com, and it comes with a promotional offer of a $100 Instacart credit upon approval. Additionally, you’ll receive one year of Instacart Plus Membership for free (a $99 value).
Instacart Plus Membership provides benefits like free delivery on purchases over $35, lower service fees, and 5% credit back on grocery pickups. You can redeem your cashback for Instacart orders, statement credits, direct deposits, or even for travel through the Chase travel portal.
Target Red Card
Cashback: 5% off at Target and target.com
Annual Fee: None
For avid Target shoppers, the Target Red Card is a must-have. This card offers an automatic 5% discount on all purchases at Target and target.com, including groceries. What’s unique about this card is that you can choose between a credit card, debit card, or reloadable card. The reloadable card and debit card options are handy if you’re concerned about hard credit pulls or want to avoid taking up a Chase 5/24 slot.
With this card, you can enjoy a consistent 5% cashback on your grocery purchases at Target, making it an excellent choice for regular Target shoppers.
Walmart Rewards Card
Cashback: 5% at walmart.com and the Walmart app
Annual Fee: None
Walmart shoppers have two options when it comes to earning rewards on their grocery purchases. The Capital One Walmart Rewards Card and the Walmart Rewards Card (also offered by Capital One) both offer 5% cashback at walmart.com and the Walmart app. While the Capital One version can be used for purchases anywhere credit cards are accepted, the Walmart Rewards Card is exclusively for Walmart-related purchases.
The bonus offer on these cards allows you to earn 5% cashback on in-store purchases at Walmart using Walmart Pay during the first 12 months of card membership. Some Walmart Neighborhood Market locations may also code as grocery stores, potentially allowing you to use other non-Walmart credit cards for these purchases, rather than Walmart also run a Walmart financial assistance program.
Chase Ink Cash Card
Cashback: 5% at office supply stores
Annual Fee: None
The Chase Ink Cash Card may not seem like an obvious choice for grocery rewards, but it has a unique advantage. This business card offers 5% cashback on the first $25,000 spent at office supply stores, and here’s where the strategy comes in – many office supply stores carry a selection of gift cards for various retailers, including grocery stores.
While this method involves purchasing gift cards, it can effectively translate into earning a 5% cashback rate on your grocery spending. The cashback earned from the Chase Ink Cash Card is in the form of Ultimate Rewards points, which can be redeemed for various purposes, including statement credits, gift cards, and travel.
Citi Custom Cash Card
Cashback: 5% on the choice category (up to $500 in spending per billing cycle)
Annual Fee: None
The Citi Custom Cash Card offers 5% cashback on your choice category, and one of the available categories is groceries. This card is an excellent standalone option for grocery shopping, but it can become even more rewarding when paired with another card in the Citi ecosystem, such as the Citi Rewards Plus Card.
When you transfer points to the Citi Custom Cash Card from another Citi card, you can get a 10% points back bonus when you redeem. This boosts your cashback rate to 5.5%, making it a compelling choice for grocery spending. Citi ThankYou points can be redeemed as statement credits, direct deposits, through the Citi travel portal, or for gift cards.
Chase Freedom Flex and Discover It Cards
Cashback: 5% in rotating categories (up to $1,500 in spending per quarter)
Annual Fee: None
The Chase Freedom Flex and Discover It cards are known for their rotating category rewards. Each quarter, these cards offer 5% cashback on purchases in a specified category, including groceries. However, the challenge is that these categories change every quarter, so it’s essential to plan your grocery purchases accordingly.
Both cards offer flexible redemption options, including statement credits, direct deposits, and gift cards. While these cards provide an excellent 5% cashback rate for three months of the year, you may want to pair them with other cards for consistent grocery rewards throughout the year.
Verizon Visa
Cashback: 4% on grocery purchases
Annual Fee: None
The Verizon Visa card is an option for Verizon customers who want to earn cashback on their grocery spending. This card offers a solid 4% cashback on grocery purchases with no limit. The cashback is earned in the form of Verizon Dollars, which can be used for various purposes, including paying your wireless or internet bill, purchasing new devices, buying accessories, or even booking travel through the Verizon website.
If you’re already a Verizon customer, this card can provide uncapped grocery rewards with a respectable 4% cashback rate.
Venmo Credit Card
Cashback: 3% on eligible top spend category (including groceries)
Annual Fee: None
The Venmo Credit Card offers 3% cashback on your eligible top spend category, and one of these categories is groceries. While the cashback rate may seem lower compared to some other cards, the Venmo card has a unique advantage – it codes Costco and Walmart purchases as groceries. This makes it a valuable option if you frequently shop at these retailers, as both their store-branded cards offer only 2% cashback on in-store purchases.
Cashback earned from the Venmo card is automatically transferred to your Venmo balance, which can be used for payments, purchases, sent to other Venmo accounts, or transferred to your bank account.
Capital One SavorOne Card
Cashback: 3% on groceries
Annual Fee: None
The Capital One SavorOne Card is a versatile cashback card that covers various spending categories, including groceries. It offers a consistent 3% cashback on grocery purchases, making it a reliable option for those who want to save on their grocery bills. Additionally, this card has no foreign transaction fees, making it suitable for grocery shopping abroad.
Cashback earned from the Capital One SavorOne Card can be redeemed for statement credits, gift cards, and travel. It’s important to note that when redeeming for cashback, the value is 0.5 cents per point. However, by redeeming for statement credits, gift cards, or travel on the Capital One travel portal, you can enjoy a more favorable redemption rate of one cent per point.
Chase Amazon Prime Card
Cashback: 5% on Amazon Fresh and Whole Foods purchases
Annual Fee: None (with Amazon Prime membership)
If you’re an Amazon Prime member who shops for groceries through Amazon Fresh or at Whole Foods, the Chase Amazon Prime Card is a fantastic choice. This card offers 5% cashback on Amazon Fresh and Whole Foods purchases. While it does require an Amazon Prime membership, the benefits can extend beyond groceries, with access to various Amazon services and perks.
Cashback earned from the Chase Amazon Prime Card is in the form of Amazon credit, which can be redeemed toward eligible amazon.com purchases, further enhancing your shopping experience.
American Express Blue Cash Everyday Card
Cashback: 3% at U.S supermarkets (up to $6,000 per year)
Annual Fee: None
The American Express Blue Cash Everyday Card is an excellent choice for those who want to earn cashback on their grocery spending. It offers 3% cashback at U.S supermarkets, with a cap of $6,000 in spending per year. While this card provides a generous cashback rate, it’s essential to be aware of the annual spending limit.
Cashback earned from the Blue Cash Everyday Card can be redeemed for statement credits without a minimum redemption threshold, giving you flexibility in how you use your rewards, there are many American express credit cards provided by American Express.
American Express Blue Cash Preferred Card
Cashback: 6% at U.S supermarkets (up to $6,000 per year)
Annual Fee: $95 (introductory $0 annual fee for the first year)
The American Express Blue Cash Preferred Card takes grocery rewards to the next level. It offers an impressive 6% cashback at U.S supermarkets, with an annual spending cap of $6,000. While it does come with a $95 annual fee, the introductory offer includes a $0 annual fee for the first year, making it an attractive option for those looking to maximize their grocery savings in year one.
Cashback earned from the Blue Cash Preferred Card can be redeemed for statement credits, gift cards, or travel through the American Express travel portal, providing you with multiple ways to use your rewards.
American Express EveryDay Preferred Card
Cashback: 3x Membership Rewards points on groceries at U.S supermarkets (up to $6,000 per year)
Annual Fee: $95
The American Express EveryDay Preferred Card offers 3x Membership Rewards points on groceries at U.S supermarkets, up to $6,000 in spending per year. What sets this card apart is the opportunity to earn 50% extra points when you make 30 or more purchases on the card each billing cycle. With this bonus, you can effectively earn 4.5x points on your grocery purchases.
Membership Rewards points can be redeemed for a variety of purposes, including statement credits, direct deposits, travel, and gift cards. If you anticipate frequent use of this card, the 4.5x points rate can make it a valuable addition to your wallet.
Citi Premier Card
Cashback: 3x points on supermarkets (no spending cap)
Annual Fee: $95
The Citi Premier Card offers 3x points on supermarket purchases, and there’s no cap on the amount you can earn. This card provides flexibility for those who want to earn points for grocery shopping while also offering the opportunity to use those points for various purposes, including statement credits, direct deposits, travel, and more.
The grocery category on the Citi Premier Card includes supermarkets worldwide, making it a suitable choice for those who shop for groceries both domestically and internationally. Plus, this card has no foreign transaction fees, so you can enjoy your grocery rewards while traveling.
Chase Sapphire Preferred
Cashback: 3x points on online grocery purchases (excludes Target, Walmart, and wholesale clubs)
Annual Fee: $95
The Chase Sapphire Preferred card is known for its travel benefits, but it also offers a valuable grocery multiplier. You can earn 3x points on online grocery purchases, which includes purchases made through grocery store apps. While the card excludes Target, Walmart, and wholesale clubs from this multiplier, there’s a clever workaround – using store apps like Kroger Pay with the Chase Sapphire Preferred card. This will code as an online grocery purchase, allowing you to access the 3% online grocery multiplier even for in-store shopping.
Points earned from the Chase Sapphire Preferred card are in the form of Ultimate Rewards points, which can be redeemed for various purposes, including travel, statement credits, and gift cards. This card is a popular choice due to its flexibility and benefits.
American Express Gold Card
Cashback: 4x Membership Rewards points at U.S supermarkets (up to $25,000 per year)
Annual Fee: $250
The American Express Gold Card is widely regarded as the gold standard for grocery credit cards. It offers an impressive 4x Membership Rewards points at U.S supermarkets, up to $25,000 in spending per year. This card is ideal for those who prioritize earning valuable rewards on their grocery purchases.
Membership Rewards points earned with this card can be transferred to various transfer partners for maximum value. Additionally, you can redeem points for statement credits, direct deposits, travel, and gift cards, providing you with a range of options to make the most of your rewards.
U.S Bank Altitude Reserve Card
Cashback: 3x points on mobile wallet spending (including groceries)
Annual Fee: $400 (offset by $325 in statement credits for eligible travel, dining, takeout, and restaurant delivery purchases)
The U.S Bank Altitude Reserve Card may be primarily a travel card, but it offers a unique opportunity to earn points on grocery spending. With a 3x points multiplier on mobile wallet spending, you can use your mobile wallet at most grocery stores to take advantage of this multiplier.
While the card has a $400 annual fee, it comes with an easy-to-use $325 statement credit for eligible travel, dining, takeout, and restaurant delivery purchases. Effectively, this reduces the annual fee to $75. Points earned from this card can be redeemed for various purposes, including statement credits and travel through the U.S Bank website at a redemption value of 1.5 cents per point.
Conclusion
Choosing the best credit card for your grocery spending is a crucial step in maximizing your savings. The right card can help you earn valuable rewards, cashback, or points on your everyday purchases. In this ultimate guide, we’ve covered a diverse range of credit cards, from those with no annual fees to premium cards with annual fees.
Each card has its unique features, benefits, and limitations, so it’s essential to consider your individual spending habits and financial goals when selecting the best credit card for groceries. Whether you prefer no annual fees, premium benefits, or versatile rewards, there’s a credit card option that can help you lower your grocery bills and enhance your overall financial well-being.
Frequently Asked Questions (FAQs)
What is the best credit card for earning rewards on grocery purchases?
The best credit card for earning rewards on grocery purchases can vary depending on your spending habits and preferences. Some popular options include the American Express Gold Card, Chase Sapphire Preferred, and Citi Custom Cash Card. It’s essential to consider factors like annual fees, cashback rates, and redemption options to determine which card is best for you.
Do I need to be a member of a specific store or club to use these grocery credit cards?
While some grocery credit cards may have specific affiliations, many are open to the general public. For example, you don’t need to be a member of AAA to apply for the AAA Daily Advantage Card. However, cards like the Target Red Card and Costco Anywhere Visa may require store memberships for full benefits. Always check the card’s terms and eligibility requirements.
How can I maximize my rewards when using a credit card for groceries?
To maximize rewards on your grocery spending, consider a few strategies:
-
- Use a credit card with a high cashback or points multiplier for groceries.
- Look for special promotions or bonus categories that offer increased rewards.
- Combine multiple credit cards to optimize rewards for different spending categories.
- Monitor spending caps and take advantage of rewards before reaching the limit.
Can I redeem my credit card rewards for cash or statement credits to offset my grocery expenses?
Many credit cards allow you to redeem rewards for cash or statement credits, which can be used to offset your grocery expenses. Check your card’s redemption options to see if this is available. Keep in mind that some cards offer higher redemption values for specific purposes, so it’s worth exploring your options.
Are there any foreign transaction fees associated with using these credit cards for groceries while traveling abroad?
Some credit cards may charge foreign transaction fees when using them for grocery shopping abroad. However, several cards on our list, such as the Capital One SavorOne Card and the Citi Premier Card, have no foreign transaction fees, making them suitable options for international grocery purchases. Always review your card’s terms and fees before traveling.