How to choose the best credit card for groceries
Quick insights
- Finding a credit card for groceries may involve considering which rewards program matches your specific food shopping habits.
- Some credit cards with rewards on grocery stores have annual spending caps or exclude wholesale clubs and superstores, so it may be helpful to verify where you shop most frequently before applying.
- Earn rates on grocery store purchases may vary across cards.
You could turn your grocery runs into rewards with the right credit card. Whether you’re a budget-conscious shopper or a foodie who only shops at specialty markets, your grocery bill may help you earn cash back to offset your grocery bill or points to redeem for your next vacation.
Let’s explore ways to evaluate credit cards for groceries, some features to look for and a few common exclusions.
How do you choose a credit card for groceries?
Before selecting a credit card for groceries, it may be helpful to calculate how much you spend on groceries each month and consider which stores you frequent.
Why can this information be helpful? Some credit cards may have spending caps that limit the amount on which you can earn accelerated rewards in a year or exclude you from earning rewards from purchases made with certain grocers. Some retailers that may be excluded from accelerated rewards on groceries include:
- Wholesale clubs
- Superstores
- Online grocers
- Delivery platforms
- Convenience stores
- Drug stores
- Specialty food stores
Alternately, some cards may exclusively offer accelerated rewards with online grocery marketplaces. Knowing your spending habits may help you choose a credit card that helps you maximize your rewards.
If you split your time between local grocery chains and giant big-box retailers, or if you typically shop online for groceries, you might look for cards that reward these purchases.
Some features to look for in a grocery card
Understanding the terms of a credit card that offers grocery rewards may help you to plan your usage. Here are some features to consider as you compare cards:
- Merchant category codes: Banks use specific codes to identify where you are shopping, and some cards only award points for traditional supermarkets. Verifying if the grocers you shop with code as a "supermarket" or a "discount store" may help you avoid missing out on rewards.
- Annual spending caps: Some cards limit your accelerated rewards on grocery purchases to the first several thousand dollars spent each year. If you have a large family, you might hit these caps quickly and notice your earning rate drop for the remainder of the year.
- Annual fee math: Weighing the cost of the credit card’s annual fee against the estimated rewards you expect to earn may help with your evaluation. Considerations may include annual fees, additional fees and rewards.
- Introductory offers: Some cards offer a welcome bonus offer, which may include different earn rates for a specific period of time.
- Redemption flexibility: You might want to consider whether you want straightforward cash back or points. Some banks allow you to redeem points for travel, cash back, gift cards, purchases with select merchants and more. Flexible rewards programs sometimes provide different value if you plan to use your earnings for flights or hotel stays.
Understanding supermarket vs. wholesale club exclusions
If a credit card offers accelerated rewards on grocery purchases, you may assume that a purchase with any store selling food will qualify. However, credit cards may specifically exclude wholesale clubs and superstores from their grocery categories. This means your purchases at a warehouse club or a massive general retailer might only earn the base rate rather than the higher earn rate.
Finding a credit card for your grocery budget
Those with more varied spending habits might want to evaluate cards with more general rewards programs. Rewards credit cards may allow you to earn points on other spending categories, including travel, dining, drug stores, streaming services and gas. Choosing a card with a rewards program that overlaps with your spending habits may allow you to earn additional points.
Additionally, some cards feature benefits like travel and protection benefits in addition to a rewards program. By comparing these credit card options side-by-side, you can choose a product that aligns with your spending.
The bottom line
Selecting a credit card for groceries may involve considering your annual food spend and the rewards structure of different cards. Some credit cards have annual spending caps on the amount you can earn on accelerated rewards, so it can be useful to verify where you shop most often before applying for your preferred card. Keep in mind that earn rates will vary depending on the card.
