How to maximize credit card rewards for online grocery delivery services
Quick insights
- Some credit cards offer rewards for online grocery delivery services depending on the store merchant code.
- You might be able to redeem credit card points for statement credits to help cover the cost of your grocery delivery.
- Checking your card's reward categories may help you earn more points on everyday purchases.
You might find ordering groceries online to be a helpful way to save time and manage your weekly meal prep. If you use online grocery delivery services, you may be wondering how to earn rewards on these purchases. Using the right credit card can help you earn points or cash back.
Do credit cards offer rewards on online grocery delivery services?
Some credit cards offer rewards on online grocery delivery services, but it depends on how the transaction is processed. When you make a purchase, the transaction is assigned a merchant category code. A merchant category code is a four-digit number used by credit card networks to classify a business based on the goods or services it provides.
Some online grocery delivery services code as grocery stores or supermarkets. If your credit card offers bonus points for grocery store purchases, you'll earn those extra points. Additionally, some rewards cards offer accelerated earnings specifically on online grocery delivery services. However, some third-party delivery apps might code as general merchandise, technology services or even transportation.
For example, a cardmember ordering weekly groceries might expect to earn 3x points because they're buying food. If the delivery service codes as a technology company instead of a supermarket, they might only earn the usual 1 point per eligible dollar.
How merchant category codes affect your points
Your credit card issuer doesn't decide the merchant category code. Instead, the merchant’s category is typically assigned by its payment processor when it sets up its payment processing system.
If you want to confirm you're earning the right amount of credit card points, you could try a small test purchase. Ordering a few pantry staples through a new delivery app allows you to check your credit card statement a few days later. This might show you the merchant category code, helping you decide which card to use for future online grocery delivery orders.
Can you redeem credit card points on online grocery delivery services?
You might be able to redeem your credit card points to help pay for your online grocery delivery services. The most straightforward method is usually requesting a statement credit. A statement credit is a feature that may allow you to apply your earned rewards directly to your credit card balance, helping to lower the amount you owe.
If you use your card to pay for a delivery, you might log in to your account later and apply your points to cover that specific purchase. Some credit cards also might allow you to link your rewards directly to online checkout platforms, letting you pay with points at the time of purchase.
Ways to help maximize your grocery delivery rewards
Here are a few tips to help you get more out of your grocery delivery spending:
- Reviewing your card benefits: You may want to check your credit card terms to see if you earn bonus points or cash back at supermarkets or online grocery delivery services.
- Looking for complimentary memberships: Some credit cards offer memberships that help you save on delivery fees for online grocery delivery services.
- Checking for ongoing credits: You might find that some credit cards offer ongoing statement credits that can help you save on online grocery delivery orders.
- Monitoring rotating categories: Some cards offer elevated rewards in specific cash back categories that change every quarter. You may want to activate these categories to start earning cash back on those purchases.
In summary
Online grocery delivery services can offer an efficient way to stock your pantry. By using a credit card that rewards these purchases, you might earn points or cash back on your everyday spending. You might consider reviewing your card's terms to see how you could benefit from your next delivery and checking your merchant categories to get the most value from your rewards.
