Best credit cards for groceries for December 2023

Bonus category cards are rewards cards that offer higher rewards rates in select categories — typically anywhere from 3 percent to 5 percent back in rewards. Cards that offer bonus grocery rewards earn cash back, points or miles on purchases at stores classified as supermarkets based on their merchant category code. That includes favorites like Safeway, Albertsons, Kroger, Publix and many other local grocery stores.

Co-branded cards carry the name of a retailer and a credit card issuer. Like traditional credit cards, you can use a co-branded grocery rewards card wherever credit cards are accepted, but they tend to earn the best rewards at the retailer named on the card.

These cards are helpful because not every store that sells groceries is considered a grocery store by issuers. Superstores like Walmart and wholesale clubs like Costco, Sam’s Club and BJ’s are often excluded from earning grocery store bonus categories. Co-branded rewards cards give you a chance to earn elevated rewards at these chains instead of the 1 point or 1 percent cash back typically offered by bonus category rewards cards when shopping at these stores.

Store credit cards like the Target RedCard™ are closed-loop cards (also known as private-label cards), which can only be used at a specific retail store. These store-only cards tend to carry higher APRs than other types of grocery store cards but may be available with a lower credit score. These cards may also give you access to deferred-interest financing options, which can help you pay off store purchases over time (or wreak havoc on your finances if you fail to pay off your balance before the promotional financing period ends).

While nearly anyone can benefit from a grocery store credit card, not everyone can reach the spending caps of some of the most lucrative grocery store credit cards like the Blue Cash Preferred. This poses less of a problem for large families with much larger grocery needs who are more likely to spend more monthly on groceries. 

Are you always on the lookout for a deal when you shop? If you like to use coupons and cash back apps when you shop, the rewards you earn with a grocery rewards card can also help you keep more of your hard-earned money.

Some grocery rewards cards also double as the best credit cards for restaurants. So whether you cook at home, dine out or order in, your everyday food spending could earn you valuable cash back.

You’ll need to have good or excellent credit to qualify for most grocery rewards cards. If you have fair credit and want to earn cash back for your grocery purchases, take a look at cards from retailers like Amazon, Walmart and Target. Many retail credit cards are open to people with lower credit scores and can be worthwhile as long as you can pay your balances in full and avoid the typically high interest rates.

However, you should also consider secured cards and other general credit-building cards since some of these private-label cards may carry high rates and fees, low credit limits or may only work at certain stores.

The primary criteria for a rewards-earning card’s rating is its rewards value. This includes the card’s average rewards rate, estimated annual rewards earnings, sign-up bonus value and reward redemption value.

To estimate a card’s average annual rewards earnings, we first calculate its average rewards rate based on how much it earns in different bonus categories and how closely its categories align with the average person’s spending habits. In other words, we assess whether the card earns rewards at a high rate in the most popular spending categories. 

We use consumer spending data from the Bureau of Labor Statistics (BLS) to get a reliable third-party measure of people’s spending habits. The most recent BLS data estimates average total spending in 2021 was $66,928 per consumer. From here, we determine a “chargeable” spend (which purchases are likely to be put on a credit card and earn rewards). After subtracting expenditures like housing, vehicle purchases, education and healthcare, we get a total “chargeable” annual spend of around $22,500.  

This includes the following spending by category:

• Groceries: $5,200
• Dining out: $3,000
• Entertainment: $2,500
• Gas: $2,100
• Apparel and services: $1,700

Using this data, we are able to assign a weighting to each of a card’s bonus categories. For example, a card’s grocery rewards rate receives a 23 percent weighting based on how much of the average person’s budget is spent on groceries. 

We also estimate the redemption value of points or miles from various [issuer, airline and hotel] rewards programs.

This weighting and rewards valuation allows us to estimate a card’s average annual rewards earnings — how many points or miles you’d earn with a given card if your spending was about average and you used the card for all of your purchases — as well as what those points are worth. We also use point valuations to determine a card’s sign-up bonus value

With these calculations complete, we assign each card a score based on how its average rewards earnings, sign-up bonus value, rewards rate and redemption value stack up against other rewards cards.

The better these values, the higher its score will be, making it more worthy of inclusion in our list and increasing its potential ranking.

We also score cards based on how much it costs to keep them in your wallet or carry a balance. 

To start, each card is scored based on whether it offers an intro APR and how its ongoing APR compares to the rates available on other rewards cards. However, the latter rating only has a slight influence on the card’s score and whether the card is included in our list, since rewards card users generally try to avoid carrying a balance.

More important to both a card’s score and its inclusion in our list is how its annual fee influences its overall value. We consider a card’s annual fee in two ways — how it ranks relative to the fees you’ll find on other cards in the category and how it impacts a card’s overall rewards value. 

Cards with an annual fee will always be at a slight disadvantage in our scoring system since annual fees inherently cut into your rewards value. However, if a card offers terrific value via its ongoing rewards and perks, it can earn a high score and a spot in our list even if it carries a high annual fee. After all, the highest rewards rates and most valuable perks are often found on cards with annual fees. 

With this in mind, we rate a card based primarily on how its ongoing rewards value and ongoing perk value (such as annual credits or bonuses) stack up against those of other cards in the category when you subtract annual fees.

That said, we strive to include as many no-annual-fee options in our list as possible since many people would rather not worry about offsetting fees, even if a card carries impressive rewards and perks.

Rewards cards may make it easy to earn a lot of points, miles or cash back, but how easy is it to use those rewards? After all, if it takes a ton of effort to redeem rewards or you can only redeem rewards in a couple of ways, a card may be more trouble than it’s worth. 

As such, we rate each card’s flexibility based on the restrictions it imposes on earning and redeeming rewards. We factor this rating into a card’s overall score and consider it when deciding on a card’s inclusion in our list. 

Flexibility factors include whether a card only allows you to earn a high rewards rate on only a small amount of spending or requires you to meet a certain earning threshold before you can redeem rewards. We also examine whether your points are worth less when you opt for some redemption options over others and whether a card gives you the flexibility to transfer rewards to travel partners. 

We also score each card’s set of features – its perks and benefits — against five tiers of features to provide a rating. 

We break down these tiers as follows:

• Tier 1 includes fewer features than even standard credit cards (for example, an ultra-streamlined card that offers basic utility and next to nothing in the way of ancillary benefits). 
• Tier 2 includes the benefits you’d expect on standard Visa or Mastercard credit cards, such as free access to your credit score, car rental insurance and $0 liability for fraudulent charges. 
• Tier 3 includes “prime card” or better-than-average card features like cellphone insurance, lost luggage insurance, concierge services and purchase protection. 
• Tier 4 includes luxury features such as airport lounge access, elite status with an airline or hotel and credits for expedited security screening membership programs. 
• Tier 5 includes the sort of exemplary benefits you’ll find on top-tier luxury cards, such as high-value travel credits, cardholder memberships and other unique and valuable perks.

In evaluating the best cards, we tend to favor cards that offer at least Tier 3 benefits, unless they include other unique features that could make up for less-impressive perks.

The Chase Freedom Flex℠ is a strong contender for best grocery store card with rotating categories. On top of earning 5 percent cash back each quarter in rotating bonus categories (on up to $1,500 each quarter, activation required, 1% cash back on all other purchases), the Freedom Flex also lets you earn bonus rewards in fixed categories like travel purchased through Chase Ultimate Rewards®, drugstore, and dining purchases (including takeout and eligible delivery services). You’ll have a hard time finding another credit card that offers such a refreshing mix of rotating and fixed bonus categories.

Just keep in mind that grocery store credit cards with rotating categories may not provide the best value for grocery spending. With these cards, you typically only earn high rewards at supermarkets for three months out of the year. You’ll have to supplement with another grocery rewards card for those months where you’d otherwise only earn 1 percent cash back on your grocery purchases.

Yes. If your store offers it, groceries can be purchased online for pickup or delivery using a credit card. Online purchases made directly through a grocery store typically earn the same rewards rate as when shopping in-store. Third-party delivery services like Instacart may also count as grocery store purchases and should earn rewards at the same rate as in-store purchases.

Some cards (like the Chase Sapphire Preferred) only earn bonus rewards on online grocery purchases. Meanwhile, some other cards carry an online shopping bonus category that earns rewards from online grocery purchases. For example, the Bank of America Customized Cash card’s online shopping category can reward grocery purchases made via Walmart.com and Target.com.

Yes. In addition to helping you earn rewards on grocery store purchases, these cards can also help you build credit. Just make sure you’re making on-time payments and keeping your monthly balances low, though paying in full can help you avoid interest charges and enjoy the full value of the rewards you earn. 

Whether an issuer considers a purchase a “grocery purchase” depends on what four-digit merchant category code (MCC) is listed next to the purchase on your card statement. 

Each major credit card network has its own MCC list, but the main Visa or Mastercard MCC you’ll want to look for is “5411: Grocery Stores and supermarkets.” Purchases on a Visa or Mastercard credit card that are assigned this MCC should be eligible for rewards as part of a grocery store or supermarket bonus category. This may include many of the products bought at supermarkets, orders from certain grocery delivery services and bakery or deli purchases.

However, not all grocery store purchases earn rewards. For example, some credit cards may specify that pharmacy prescriptions, gift cards, lottery tickets and certain other purchases won’t earn rewards. Additionally, purchases at some retailers that sell groceries may not qualify for rewards, including purchases at wholesale clubs, superstores, convenience stores, online retailers and specialty stores like butcher shops and farmer’s markets.

Yes, many grocery store cards are worth it. There are numerous excellent grocery store cards on the market, many without an annual fee, and since groceries are often an integral part of people’s spending, grocery cards can offer an easy way to earn back some essential living costs. 

Co-branded grocery store cards are mostly offered by large national superstores, such as Target and Walmart, or wholesale clubs like Sam’s Club, BJ’s, and Costco. You may not find co-branded cards from smaller grocery stores like Fry’s, Giant, or Food Lion.