Best Credit Cards for Groceries

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The average American household spends more than $7,700 on food annually. More than half of that money is spent at grocery stores buying food to fill our fridges, cupboards, and pantries.

One way to maximize your grocery spending is to get a credit card that earns rewards for trips to the supermarket.

But which credit card is best for earning rewards on food purchases?

Check out our list of the 11 best credit cards for groceries, then decide for yourself.

11 Best Credit Cards for Groceries in 2020

Chase Freedom Unlimited®: Best Cash Back Card

Chase Freedom Unlimited Credit Card
  • Sign-up Bonus: $200 cash bonus after spending $500 in the first three months from account opening
  • Earning Potential: 5% cash back on grocery store purchases (not including Target(R) or Walmart(R) purchases) on up to $12,000 spent in the first year; 1.5% unlimited cash back on all other purchases
  • Annual Fee: $0

The Chase Freedom Unlimited Card is our choice for the best cash back card to use for groceries. That’s because it offers 5% cash back on grocery store purchases on up to $12,000 spent in the first year; 1.5% unlimited thereafter. There’s nothing to calculate and no hoops to jump through. Just buy groceries and pay with your Chase card to earn cash back.

Other cards may offer a higher earning percentage, but many of them have purchase limits or are only available as a rotating spending category once a year.

Chase Freedom Unlimited has no annual fee. It does, however, have significant foreign transaction fees, so only use it when shopping in the U.S.

One way to maximize your cash back is available if you happen to already have the Chase Sapphire Preferred Card or the Chase Sapphire Reserve. Both of these cards have access to Chase Ultimate Rewards, one of the best travel rewards programs available. Cash back rewards from your Chase Freedom Unlimited can be transferred and converted into Ultimate Rewards points and used for travel.

Learn More: Read our full Chase Freedom Unlimited Review.
Pro Tip: Check out all of our Best Cash Back Credit Cards for 2020.

Blue Cash Preferred® Card from American Express: Best Overall

Blue Cash Preferred Card from American Express
  • 6% cash back on U.S. supermarkets for the first $6,000 of purchases
  • Learn More >>
  • Welcome Bonus: $300 cash back after spending $3,000 in the first six months from account opening
  • Earning Potential: 6% cash back at U.S. supermarkets for first $6,000 of purchases and then 1% after, 6% cash back on U.S. streaming services, 3% cash back on transit costs and U.S. gas stations, 1% cash back on other purchases
  • Annual Fee: $95, waived first year (offer expires 12/10/2020)

The Blue Cash Preferred Card from American Express offers one of the highest-earning percentages on groceries. 6% cash back for the first $6,000 in U.S. supermarket purchases is no joke. Plus, you still earn 1% cash back after that.

Beyond groceries, the Blue Cash Preferred Card earns cash back on other popular spending categories, like streaming services, gas, and transit costs.

Blue Cash Preferred throws in some travel perks for good measure. Included with this Amex card are 24/7 emergency assistance and car rental damage insurance.

Pro Tip: Check out all of our Best Credit Cards for 2020.

Blue Cash Everyday® Card from American Express: Best Everyday Card

Blue Cash Everyday Card from American Express
  • 3% cash back at U.S. grocery stores up to the first $6,000 of purchases
  • Learn More >>
  • Welcome Bonus: $200 cash back after spending $1,000 in the first three months from account opening
  • Earning Potential: 3% cash back at U.S. grocery stores, up to the first $6,000 in purchases and then 1% after, 2% cash back at U.S. gas stations and select U.S. department stores, 1% cash back on other purchases
  • Annual Fee: $0

If you’re looking for a credit card that’s great for groceries, but still worth using for everyday purchases, check out the Blue Cash Everyday Card from American Express. It carries no annual fee and earns cash back rewards at the places Americans frequent the most.

For a limited time, you can also earn a nice $200 cash sign-up bonus after spending $1,000 in the first three months. For people who want to transfer a balance or make a large purchase and pay it off over time, Blue Cash Everyday comes with a great introductory APR period.

Learn More: Read our Blue Cash Everyday® Card from American Express Review.
Pro Tip: Check out all of our Best Gas Credit Cards for 2020.

American Express® Gold Card: Best High-End Card

American Express Gold Card
  • Welcome Bonus: 60,000 Membership Rewards Points after spending $4,000 in the first six months from account opening
  • Earning Potential: 4x at restaurants worldwide and U.S. supermarkets (on up to $25,000 per year then 1x), 3x on flights, 1x on other purchases
  • Annual Fee: $250

Getting a high-end credit card just for grocery perks probably isn’t the best idea. But if you’re in the market for a high-end card already. The American Express Gold Card offers the best U.S. supermarket rewards along with plenty of other perks.

Cardmembers earn 4x on every dollar spent at restaurants worldwide and U.S. grocery stores. Plus, there’s a valuable 60,000 point sign-up bonus when you spend $4,000 in the first six months.

It will be hard for some people to get passed the $250 annual fee. If that’s you, there are plenty of other cards on the list with rewards for buying groceries.

Most of the perks tied to the Gold Card are travel-related. This includes an airline fee credit, access to luxury hotel programs, various types of travel insurance, and much more. The American Express Gold Card doesn’t skimp on value.

Pro Tip: Check out all of our Best American Express Credit Cards for 2020.

Capital One® SavorOne® Cash Rewards Credit Card: Best Dining Card

capital one savor cash rewards credit card
  • Sign-up Bonus: $150 cash bonus after spending $500 in the first three months from account opening
  • Earning Potential: Unlimited 3% cash back on dining and entertainment, 2% cash back at grocery stores and 1% cash back on other purchases
  • Annual Fee: $0

The Capital One SavorOne Cash Rewards Credit Card rewards you for food purchases, whether you are going out or checking items off your grocery list.

Earning potential is high with this Capital One card. Cardholders earn an impressive 3% cash back dining and entertainment as well as 2% on grocery purchases. Whether you cook a family meal or opt to head out for dinner, you still earn rewards.

The $150 cash bonus for spending $500 in the first three months is a nice perk too.

Pro Tip: Check out all of our Best Credit Cards for Restaurants in 2020.

Target REDcard™ Credit Card: Best Discount Card

target red card
  • Sign-up Bonus: None
  • Earning Potential: 5% discount on eligible Target purchases
  • Annual Fee: $0

Typically store-branded credit cards aren’t great options compared to other rewards cards. The Target REDcard could fall into that category as well. That is, unless, you are a regular Target shopper.

While it doesn’t offer much in terms of rewards, it’s value lies in the 5% discount you receive on all eligible Target purchases. If your weekly grocery shopping includes a trip to Target, having a 5% discount can save you a ton of money over time.

This discount applies to online purchases and is even applied to purchases like clearance items, specialty gift cards, in-store Starbucks purchases, and more.

Other perks with the Target REDcard include:

  • Free 2-day shipping on eligible items
  • Exclusive special offers and gifts
  • An additional 30 days for returns and exchanges

Bank of America® Cash Rewards: Best No Fee Card

bank of america cash rewards credit card image

  • Sign-up Bonus: $200 cash bonus after spending $1,000 in the first 90 days after account opening
  • Earning Potential: 3% cash back in a category of your choice, 2% cash back at grocery stores and wholesale clubs, 1% cash back on other purchases
  • Annual Fee: $0

The Bank of America Cash Rewards Credit Card operates a little differently than other credit cards. Although tracking rewards can be a challenge with this card, it’s worth it.

Cardholders get to choose a bonus spending category that will earn 3% cash back. You can choose from categories including gas, travel, dining, and more. You also earn 2% at grocery stores and wholesale clubs, like Costco and Sam’s Club.

Something to keep in mind, though, is that after hitting $2,500 in combined purchases between your chosen category and grocery store/wholesale clubs, your earning percentage drops to 1% cash back.

 

Costco Anywhere Visa® Card by Citi: Best Store Card

Costco Anywhere Visa®
  • 4% cashback on gas, 3% on food and travel and more
  • Learn More >>
  • Sign-up Bonus: None
  • Earning Potential: 4% on gas purchases worldwide (including at Costco) for the first $7,000 spent, then 1% afterward, 3% at restaurants and on travel purchases, 2% on other Costco purchases, 1% on other purchases
  • Annual Fee: No annual fee with paid Costco membership

Costco is one of the most popular wholesale clubs in the U.S. It’s a store than many Americans frequent weekly, which is what makes The Costco Anywhere Visa Card by Citi so valuable. It offers tons of value for loyal Costco customers.

When you use your Costco Anywhere Visa Card, you’ll earn  4% on gas purchases, including at Costco for the first $7,000 spent and then 1% after that. In-store purchases and through Costco’s website will net you 2% cash back. Travel purchases and dining out have high earning rates too.

The Costco Anywhere Visa Card by Citi doesn’t have an annual fee to worry about, but it does require a Costco Membership.

Pro Tip: Check out the benefits of a Costco Membership.

Amazon Prime Rewards Visa Signature Card: Best Online Shopping Card

amazon prime rewards visa signature card image

  • Sign-up Bonus: $100 Amazon gift card after card approval
  • Earning Potential: 5% cash back at Whole Foods and on Amazon.com, 2% cash back at restaurants, gas stations, and drugstores, 1% on other purchases
  • Annual Fee: $0

Perhaps you’ve heard of Amazon. They are the world’s largest online marketplace. In 2017, they purchased popular grocery chain, Whole Foods Market. The Amazon Prime Rewards Visa Signature Card earns high cash back percentages at both places.

Cardholders with an eligible Prime membership earn a massive 5% cash back for purchases at Whole Foods and on Amazon.com. Without Prime, you’ll only earn 3% cash back.

Other cash back earning includes 2% at restaurants, gas stations, and drugstores and 1% on everything else.

If you are a regular Amazon or Whole Foods shopper, this card makes sense to have. Plus, you’ll get a free Amazon gift card instantly when you’re approved for this Visa card for $100!

Pro Tip: Check out all of the benefits of an Amazon Prime Membership.

PenFed Platinum Rewards Visa Signature® Card: Best Credit Union Card

penfed platinum rewards card

  • Sign-up Bonus: $100 statement credit after spending $1,000 in the first 90 days from account opening
  • Earning Potential: 5x on gas, 3x on groceries, 1x on other purchases
  • Annual Fee: $0

To be approved for the PenFed Platinum Rewards Visa Signature Card, you’ll need to be a member of their credit union. The cash back earnings with this card may be worth becoming a member.

First, you’ll receive a $100 statement credit for spending $1,000 in the first 90 days. If that’s not enough, grocery purchases net 3x points per dollar spent, and gas purchases earn a whopping 5x points per dollar spent. Everything else earns one point per dollar.

Grocery Credit Card FAQs

What is the best credit card for groceries and gas?

There are several credit cards on our list that have high rewards earning potential on both grocery and gas purchases. Which one is best depends on your needs how much you’re willing to pay for the annual fee.

For example, the Blue Cash Preferred Card from American Express earns 6% on U.S. supermarket purchases for the first $6,000 (then 1%) and 3% on all U.S. gas purchases.

Can you use a credit card for groceries?

Almost all grocery stores in the U.S. accept credit cards as a payment method for grocery purchases. Some discount grocery chains used to not allow credit card use, but those policies have changed in the last few years.

Is Walmart considered a grocery store for credit cards?

No, unfortunately, most credit card companies do not give big box stores like Walmart and Target the grocery store designation. This is also the case for most wholesale clubs, like Costco and Sam’s Club.

What counts as a supermarket to American Express?

Merchants that count as supermarkets in American Express’ eyes include, but aren’t limited to:

  • Gristedes
  • Foodtown
  • Meijer
  • Shoprite
  • Stop and Shop
  • Vons
  • Whole Foods
  • Winn-Dixie
  • FreshDirect (online)

According to American Express, superstores, wholesale clubs, convenience stores, and specialty stores (like a deli or fish market) do not count as supermarkets even if they sell groceries.

Should You Get a Grocery Credit Card?

best credit cards for groceriesIf you are looking for a good credit card to earn rewards while grocery shopping, choose one from the list above that’s right for you.

Figure out what’s important to you in a credit card for groceries and whether you are ok with paying an annual fee or not.

What’s your favorite credit card to use for groceries? Let us know in the comments.

Additional Disclosures: Millennial Money has partnered with CardRatings and creditcards.com for our coverage of credit card products. Millennial Money, CardRatings and creditcards.com may receive a commission from card issuers. This site does not include all financial companies or financial offers. Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

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