Kudos has partnered with CardRatings and Red Ventures for our coverage of credit card products. Kudos, CardRatings, and Red Ventures may receive a commission from card issuers. Kudos may receive commission from card issuers. Some of the card offers that appear on Kudos are from advertisers and may impact how and where card products appear on the site. Kudos tries to include as many card companies and offers as we are aware of, including offers from issuers that don't pay us, but we may not cover all card companies or all available card offers. You don't have to use our links, but we're grateful when you do!
Best Credit Cards for Grocery Shopping: Category Breakdown by Store Type
July 1, 2025
.webp)
Why Your Grocery Store Type Matters
The average American household spends over $6,000 annually on groceries. That's a massive opportunity for rewards—if you're using the right card at the right store.
But here's the catch: Not all "grocery stores" earn bonus rewards. The credit card industry categorizes stores differently, and using the wrong card could cost you hundreds in missed rewards each year.
This guide breaks down exactly which cards work best at which stores—from traditional supermarkets like Kroger and Publix to wholesale clubs like Costco and Sam's Club, plus online options like Instacart.
What you'll learn:
- Which stores qualify for bonus rewards (and which don't)
- The best card for your specific shopping habits
- How to stack rewards using multiple cards strategically
- Real-world examples of maximizing grocery spend
Understanding Merchant Category Codes
Before diving into specific cards, you need to understand how credit card issuers categorize grocery stores.
What Are Merchant Category Codes?
Every purchase you make is tagged with a four-digit Merchant Category Code (MCC) that determines if it earns bonus rewards. The main grocery-related MCCs are:
MCC 5411 - Grocery Stores & Supermarkets: Traditional grocery stores like:
- Kroger, Publix, Safeway
- Trader Joe's, Whole Foods
- Aldi, Stop & Shop
- Local grocery chains
MCC 5310 - Discount Stores/Superstores: Big-box retailers like:
- Walmart (most locations)
- Target
- These typically DON'T earn grocery bonus rewards
MCC 5300 - Wholesale Clubs: Membership warehouses like:
- Costco, Sam's Club, BJ's
- Often excluded from grocery categories (except Bank of America cards)
MCC 5499 - Miscellaneous Food Stores: Specialty retailers including:
- Convenience stores
- Gourmet food shops
- Some meal kit services
Why This Matters
Even stores that sell groceries won't necessarily earn bonus rewards if they don't code as "supermarkets" or "grocery stores." This is why understanding these categories is crucial—it's the difference between earning 6% back or just 1%.
Kudos Tip: Use Kudos Insights to automatically track which stores earn you the most rewards. Our AI analyzes your transaction history and alerts you when you're not using your best card.
Best Cards for Traditional Supermarkets
Traditional supermarkets are where most grocery cards shine. These stores typically code as MCC 5411 and include chains like Kroger, Publix, Safeway, Albertsons, and Whole Foods.
American Express® Gold Card
Best for: High grocery spenders who value travel rewards
Why it's great for groceries:
The Amex Gold is the premium choice for grocery rewards if you're comfortable with an annual fee and want flexible points you can transfer to airlines and hotels.
Best for: Families spending $500+ monthly at supermarkets who also dine out frequently
[[ SINGLE_CARD * {"id": "118", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Generous Travel Rewards"} ]]
Blue Cash Preferred® Card from American Express
Best for: Cash back lovers shopping at traditional supermarkets
Why it's a top pick:
The Blue Cash Preferred offers the highest cash back rate available for U.S. supermarket purchases.
Decision support: Should you get this card? If you spend $200+ monthly at U.S. supermarkets, yes. Below that threshold, consider the no-annual-fee Blue Cash Everyday® Card from American Express instead.
[[ COMPARE_CARD * {"ids": ["261", "260"], "bestCategoryIds":["17", "18", "19"], "bestForTexts":["Cash Back Perks", "Cash Back Perks"]} ]]
Capital One Savor Cash Rewards Credit Card
Best for: No annual fee grocery rewards + dining
Why we love it for groceries:
The Savor is Capital One's answer to comprehensive food rewards. While the rate isn't as high as the Blue Cash Preferred, there's no spending cap, making it ideal for high-volume shoppers or those who want simplicity.
Capital One's grocery definition is broader than American Express's, including specialty markets and smaller food retailers that might not qualify elsewhere.
Application path: Capital One provides pre-qualification tools, so you can check if you're likely to be approved without a hard credit pull.
[[ SINGLE_CARD * {"id": "3041", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "Excellent Choice" } ]]
Best Cards for Wholesale Clubs
Wholesale clubs like Costco, Sam's Club, and BJ's present a unique challenge: most grocery credit cards specifically exclude them from bonus categories.
Bank of America® Customized Cash Rewards Credit Card
Best for: Wholesale club shoppers
Why it works for wholesale clubs:
Bank of America is one of the only major issuers that includes wholesale clubs in its grocery category. This makes the Customized Cash a rare gem for Costco, Sam's Club, and BJ's shoppers.
The Costco caveat: While this card works at Costco, remember that Costco only accepts Visa cards. The Customized Cash is a Visa, so you're good to go.
[[ SINGLE_CARD * {"id": "188", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Cash Back Seekers", "headerHint": "2% on Grocery Stores, Wholesale Clubs"} ]]
Best Cards for Superstores (Walmart & Target)
Walmart and Target code as "discount stores" (MCC 5310) rather than grocery stores, which means most grocery cards won't give you bonus rewards. Here's your workaround:
Use Flat-Rate Cash Back Cards
Since superstores don't typically earn grocery bonuses, your best strategy is using a strong flat-rate cash back card.
The Online Grocery Loophole
Here's where it gets interesting: Many Walmart and Target purchases CAN earn grocery bonuses if you order online through services like Instacart or Shipt. These delivery services often code as grocery stores (MCC 5411), even when sourcing from Walmart or Target.
Best Cards for Online Grocery & Delivery
The pandemic permanently changed how Americans buy groceries. In 2024, over 30% of grocery purchases happened online or through delivery services.
Chase Sapphire Preferred® Card
Best for: Online grocery shoppers who also travel
Why it's perfect for online groceries:
The Chase Sapphire Preferred is one of the few premium cards with a dedicated online grocery category.
[[ SINGLE_CARD * {"id": "509", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Exceptional Travel Value"} ]]
Services That Typically Earn Grocery Rewards:
✅ Instacart (most cards)
✅ Amazon Fresh (5% with Prime Visa)
✅ Kroger.com pickup/delivery
✅ Whole Foods delivery
✅ Target.com grocery delivery (sometimes codes as grocery)
Services That May NOT Earn Grocery Rewards:
❌ DoorDash (unless ordering from a grocery store)
❌ Uber Eats (unless ordering from a grocery store)
❌ Walmart.com pickup (often codes as Walmart, not grocery)
Urgency element: Delivery service coding can change without notice. Kudos automatically tracks where you earn the most and alerts you if a merchant's coding changes.
Building Your Grocery Card Strategy
The average Kudos user with 2-3 cards misses out on $441 annually in extra rewards by not optimizing which card they use for each purchase. Here's how to build a winning strategy:
The Two-Card Approach (Most Common)
Card #1: Primary Grocery Card
Choose based on where you shop most:
- Traditional supermarkets
- Wholesale clubs
- Online/Delivery
Card #2: Backup Card
For spending beyond your primary card's cap or at stores your primary card doesn't cover.
The Partner Strategy
If you're married or have a partner, consider each getting the same primary card. This effectively doubles your spending cap.
The Three-Card Power Setup
For serious rewards optimizers:
- Blue Cash Preferred®
- Capital One Savor
- Bank of America® Customized Cash
Stacking Rewards with Kudos
Kudos Insights analyzes your spending patterns and tells you exactly which card earns the most rewards for every purchase—so you never leave money on the table.
How Kudos Helps You Win at Groceries:
1. Automatic Best Card Selection
At checkout (online or in-store), Kudos instantly shows you which card in your wallet earns the most for that specific merchant.
2. Hidden Perks Alerts
The average Kudos user forgets to redeem $624 in card benefits each year. Kudos tracks expiring credits and reminds you to use perks like:
- Annual statement credits
- Complimentary delivery service memberships
- Purchase protections on grocery items
3. Spending Cap Monitoring
Kudos alerts you when you're approaching spending caps on cards like the Blue Cash Preferred®, so you can seamlessly switch to your backup card.
4. Merchant Coding Insights
Confused whether a store will earn grocery rewards? Kudos shows you historical data on how specific merchants code across different cards.
Frequently Asked Questions
Does Walmart count as a grocery store for credit cards?
No, most Walmart locations code as "superstores" (MCC 5310) rather than grocery stores, so they won't earn bonus rewards on most grocery credit cards. However, some Walmart Neighborhood Markets may code as grocery stores. Your best bet is checking with Kudos to see how your specific Walmart location codes, or ordering through a delivery service like Instacart where purchases often do qualify for grocery rewards.
Do wholesale clubs like Costco qualify for grocery rewards?
Most credit cards specifically exclude wholesale clubs from their grocery categories. The major exception is Bank of America cards, which include warehouse clubs in their grocery/supermarket category. For Costco specifically, remember they only accept Visa cards, so your card options are limited.
What's the difference between "supermarkets" and "grocery stores" on credit cards?
From a credit card rewards perspective, these terms are usually interchangeable—both typically refer to merchants with MCC 5411. However, the key distinction is that neither includes superstores (Walmart, Target) or wholesale clubs (Costco, Sam's Club), even though these retailers sell groceries.
Can I earn grocery rewards when using Instacart or other delivery services?
Usually, yes! Most grocery cards recognize Instacart purchases as grocery transactions, even if you're ordering from a store that wouldn't normally qualify (like Costco). However, Chase excludes Walmart, Target, and wholesale clubs from their online grocery category, even when ordered through delivery services.
Should I get two grocery credit cards?
For many households, yes. If you spend more than $500/month on groceries ($6,000/year), you'll hit the spending cap on cards. Having a second card with no cap ensures you continue earning bonus rewards on every grocery dollar.
Do credit cards with grocery bonuses cover meal kits like HelloFresh or Blue Apron?
Generally, no. Meal kit services typically don't code as grocery stores. They usually appear as MCC 5499 (miscellaneous food stores) or have their own specific MCC, which won't earn grocery bonus rewards. Check your card's specific terms, as some issuers explicitly exclude meal delivery services.
Bottom Line
The best grocery credit card depends entirely on where you shop and how much you spend. There's no universal answer—but there is a right answer for your specific situation.
Here's what to do next:
- Audit your grocery spending. Look at the last 3 months of transactions and categorize them:
- How much at traditional supermarkets?
- How much at wholesale clubs?
- How much at Walmart/Target?
- How much through delivery services?
- Calculate your potential rewards. Use the rates in this guide to estimate what you'd earn with each card strategy.
- Start with one card. If you're new to rewards optimization, begin with a single grocery card that matches where you shop most frequently.
- Let Kudos optimize for you. Instead of manually tracking all this, let Kudos Insights do the heavy lifting. Sign up for free and connect your cards—we'll show you exactly where you're leaving money on the table.
Remember: The average Kudos user with multiple grocery cards earns an extra $441 per year just by using the right card at the right time. That's real money that could go toward your next vacation, emergency fund, or paying down debt.
Unlock your extra benefits when you become a Kudos member
Turn your online shopping into even more rewards
Join over 400,000 members simplifying their finances
Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
.webp)
.webp)
