Using credit card rewards for grocery subscription services
Quick insights
- Understanding how your card categorizes purchases may help you earn rewards on eligible grocery and delivery purchases.
- Redeeming points for statement credits could help offset the cost of eligible food subscription services.
- Evaluating your dining spending habits to help choose a card that aligns with your preferences.
You might not think much about the tiny line of text behind your meal kit charges, but your credit card does. Grocery subscription charges are assigned a merchant category code (MCC), and that classification can determine whether you earn bonus grocery rewards or only the standard rate. Taking a closer look at how these services are classified can help you earn rewards on your weekly deliveries.
Do credit cards offer rewards on grocery subscription services?
Yes, some credit cards offer groceries, including grocery subscription services, as a rewards category. Whether grocery purchases earn rewards at an accelerated rate might depend on how the credit card network categorizes the merchant, often using an MCC.
The platform you use to place your order could influence your rewards. A subscription purchased directly from a meal kit company might be processed differently than ordering groceries through a third-party delivery app. Reviewing your card's rewards categories can help you understand which delivery methods offer the most value.
Types of rewards cards for grocery purchases
When evaluating how to pay for your grocery subscriptions, it might be helpful to understand the different types of rewards credit cards available. Depending on your financial goals, certain reward structures may align better with your lifestyle.
- Cash back cards: These cards typically offer a percentage of your purchase back, often redeemable as a statement credit or direct deposit. If your primary goal is to offset the out-of-pocket cost of your weekly meal deliveries, a cash back card that offers elevated rewards on groceries may align with that goal.
- Flexible points cards: Instead of cash, these cards earn points that you may be able to redeem in a variety of ways, such as booking travel, purchasing gift cards, or applying statement credits. If you prefer using your everyday food expenses to help fund future trips or experiences, a flexible rewards card could help support that goal.
- Co-branded loyalty cards: Some credit cards are partnered with specific airlines, hotels, or retail brands. Using one of these cards for your grocery subscriptions could help you accumulate miles or loyalty points for that specific program, which may be beneficial if you frequently travel with a particular brand.
How merchant category codes impact your rewards
Understanding how different services are classified could help you make the most of your earning potential.
- Supermarket classifications: Some meal delivery companies might code directly as supermarkets or grocery stores. If you use a card that offers an accelerated earning rate on groceries, a box from a qualifying provider might allow you to accumulate points faster.
- Dining classifications: Other food delivery apps and prepared meal services might code as dining or fast food. If your credit card rewards restaurant purchases, ordering from these specific providers could boost your rewards balance.
- General retail classifications: Certain third-party delivery platforms or big-box retailers may not fall into either accelerated category. In these cases, your weekly food order might simply earn the standard cash back rate offered by your card.
Can you redeem credit card points on grocery subscription services?
You could potentially redeem your accumulated rewards to help cover the cost of your weekly food deliveries. Many flexible rewards programs allow you to redeem points for statement credits, which may be applied directly to your monthly bill. This strategy could lower your out-of-pocket expenses.
Additionally, some credit card portals might offer the option to redeem points for gift cards to popular food delivery brands. If your preferred meal kit provider participates in these programs, exchanging your rewards for a gift card might be a straightforward way to pay for your subscription services.
Exploring alternative payment methods
Beyond entering your credit card directly, you might explore third-party payment platforms when checking out. Linking your credit card to a third-party service could help streamline your weekly ordering process by saving your payment details.
However, using a third-party platform may alter how your transaction is coded. For example, checking out through a third-party processor might preserve the original merchant category code for your meal kit, but it could also change how the purchase is classified. Reviewing your statement after your first order could confirm how your purchase was classified, which in turn may help you decide if you want to adjust your payment methods.
Tips for managing your food delivery costs
There are a few other considerations that might help you get more value from your weekly food orders.
- Budget evaluations: Taking a look at your monthly food expenses could highlight where your money goes most often. If you notice a large portion of your budget goes toward meal kits, cards that offer elevated rewards on those specific purchases might be advantageous.
- Redemption checks: Checking your rewards portal may reveal new ways to use your points, such as redeeming your balance for a statement credit to help offset the cost of subscription services.
- Rotating categories: Some credit cards might feature rotating reward categories that change throughout the year. Timing large food orders with a grocery or dining offer could help earn rewards at an accelerated rate.
The bottom line
Using a rewards credit card for grocery and food delivery services can help you earn points or cash back. Checking how those purchases are categorized can help you maximize rewards and redeem them for statement credits to help offset costs.
