When it comes to saving money at the grocery store, your first thought is probably a coupon. While coupons are a great way to cut your grocery bill, you can also save by using a cash back credit card. These cards give you a percentage back on what you spend, thus saving you money. Some credit cards, as you’ll see below, pay enhanced rewards for purchases at grocery stores.
Details on the Best Credit Cards for Groceries
The best credit cards for grocery shopping pay at least 3% in rewards. The above Chase cards meet that standard, although for a limited time. Here are our top supermarket cards from all issuers.
Chase Freedom Flex
The Chase Freedom Flex is one of the best all-around cash back credit cards. In terms of groceries, it offers up to 5% cash back in rotating categories that change each year (capped at $1,500 in purchases per quarter). Typically at least one of these quarters includes groceries. While it doesn’t apply all year, the other cash back rewards and signup bonus more than make up for it.
Chase Sapphire Preferred Card
Most don’t think of the Chase Sapphire Preferred Card as a grocery rewards credit card. And it’s not, most of the time. It’s focus is on travel and dining. But from now until April 30, 2021, you get a 25% point bonus when you use points to pay for purchases in several categories including, you guessed it, groceries. Chase calls it ‘Pay Yourself Back,’ and it’s intended to address the fact that aren’t traveling much at the moment.
Blue Cash Preferred® Card from American Express
The Blue Cash Preferred® Card from American Express is arguably the best known grocery store credit card. It pays 6% cash back on the first $6,000 in grocery purchases each year. As you can see, you’ll also earn 6% back on select streaming and 3% on gas. There is an annual fee, but the cash back should more than make up for it.
Important: Superstores and warehouse clubs are not considered supermarkets. So if you buy your groceries at Costco, Target or Walmart, you won’t earn the 6% cash back. If that’s you, check out some of the cards below.
Amazon Prime Rewards Visa Signature Card
We shop at Whole Foods, so the Amazon Prime Rewards Visa Signature Card is an important part of our cash back strategy. You get 5% cash back at Whole Foods (no spending cap) and at Amazon. There’s also no annual fee, although Amazon Prime membership is required.
Blue Cash Everyday Card from American Express
The Blue Cash Everyday Card from American Express is the best no-fee (see Rates & Fees) Amex grocery store credit card. You earn 3% cash back on up to $6,000 a year in supermarket purchases.
American Express Gold Card
While most thing of the American Express Gold Card as a dining and travel card, it also pays 4x Memebership Rewards points on groceries. And while spending is capped, it’s much higher than the Blue Cash Preferred cap. You can earn 4x points on up to $25,000 a year in supermarket purchases.
Capital One Savor Cash Rewards Credit Card
The Capital One Savor Cash Rewards Credit Card pays 2% cash back at grocery stores. Add to that 4% back on dining and entertainment and a generous signup bonus, and this no annual fee card is a solid option.
Chase Freedom Unlimited
The Chase Freedom Unlimited is a great cash back card. While it doesn’t offer an enhanced reward rate for grocery store purchase, it could easily serve as a single card for all purchases, including groceries.
Store Brand Credit Cards
If you shop for groceries at specific stores, the store-branded credit cards often offer excellent rewards. I already mentioned the Amazon Prime Rewards Visa Signature above. It earns 5% cash back on purchases at Whole Foods.
Here are some other store-specific cards to consider.
Target RedCard: The Target RedCard pays 5% cashback on Target purchases in the store and online. The 5% even applies to purchases at Starbucks in Target stores. The card comes as either a credit card or a debit card. The debit card version made our list of the best prepaid cards.
Walmart Credit Card: Issued by Capital One, the Walmart card pays 5% cashback at online Walmart purchases, including grocery pickup and delivery. It pays 2% cashback on purchases at Walmart stores.
Costco Anywhere Visa Card by Citi: the Costco Card pays 2% cash back on all purchases at Costco and Costco Online. Frankly, as a grocery store credit card, it’s mediocre. The problem is that many of the other cards listed above don’t pay the enhanced rewards on groceries purchased at Costco or other wholesale clubs. As such, it can be your best bet on Costco. On the brighter side, it pays 4% cash back on gas and 3% back on restaurants and eligible travel purchases.
FAQ
If you spend a lot of money on groceries, as many families do, a card that pays extra rewards at the supermarket can be worth it. Just make sure to consider the overall value of the card, including purchases in other categories.
The answer depends on where you buy groceries. The highest cash back for all grocery stores is the Blue Cash Preferred® Card from American Express. If you shop at Whole Foods, however, the Amazon Prime card is the best option. And for superstores and warehouses, branded cards are the best option.