Choosing the right credit card for grocery purchases can help you stretch your food budget.
The cost of groceries has increased by 2% for the 12-month period ending April 2025, according to the US Bureau of Labor Statistics. So if you’re looking for ways to save money on food, you’re not alone. The right grocery credit card can put money back in your pocket whenever you restock your kitchen.
My Blue Cash Preferred® Card from American Express, for example, has turned out to be the most rewarding credit card I have. Since I got it five years ago, it’s earned me hundreds of dollars back on my supermarket spending.
Some of the best grocery cards — those offering cash-back rewards or points — can stretch your grocery budget by as much as 6%. These cards typically also offer rewards in other spending categories, and many come with a sizable welcome bonus.
For rates and fees of the Blue Cash Preferred Card from American Express, click here.
How do grocery cards work?
Grocery credit cards work like any other credit card. Just use the card for your grocery spending and then redeem your rewards in the most lucrative way possible. With rewards credit cards, that generally means redeeming as either statement credits or by depositing your rewards directly into your bank account. Be aware of your card’s terms before you shop. Some grocery cards don’t cover major retailers like Costco, Walmart or Target.
The best credit cards for buying groceries will help you earn rewards without increasing your monthly spending. We don’t recommend spending outside of your budget just to earn rewards. If you can’t repay your bill in full each month, the interest you accrue can overshadow any rewards you’ve earned.
Who should get a grocery credit card?
Anyone who regularly buys items from a grocery store should consider a grocery credit card. Earning a return on spending is one of the best uses for a credit card, and a grocery credit card can go a long way toward lowering your monthly expenses.
✅Pros:
- Earn rewards for a purchase you frequently make.
- Redeem rewards to lower your overall card balance or deposit them directly into your bank account.
- Added security for your purchases.
❌Cons:
- Some cards may charge an annual fee.
- Rewards could lead to overspending.
How to choose the best credit card for grocery shopping
Deciding which grocery credit card is right for you will depend largely on your shopping habits. Before applying for a grocery credit card, you’ll want to read the fine print to make sure that your needs will be met depending on where you shop. That also means choosing between co-branded credit cards like those offered by Costco or Walmart and general rewards credit cards that work at any supermarket.
Rewards
You’ll want the reward rate to be high enough that you can generate a decent return based on your budget.
Cash-back rewards are usually worth 1 cent per dollar spent (1% cash back equals 1 cent) and can be redeemed for statement credits or deposited directly into your bank account. The value of points could change depending on how they’re redeemed, and you typically have more options including using them for gift cards, merchandise or travel.
Annual fee
If a card carries an annual fee, you’ll need to be sure you get enough value through your normal spending to offset the expense and still earn rewards. With some credit cards, like the Blue Cash Preferred, which earns 6% cash back at U.S. supermarkets (on the first $6,000 per year, then 1%) and has a $95 annual fee ($0 intro annual fee for the first year) that’s easy to do — but it may not always be the case.
Welcome bonus
Try not to get enamored with a credit card’s welcome bonus. While it can be appealing, it is typically a one-time reward. Because you need to purchase groceries frequently, you’re better off focusing on maximizing these rewards over time rather than going for the up-front bonus. But if you can reach the bonus without overspending, it’s a fruitful extra feature.
Eligibility
A card that requires “good” or “excellent” credit will offer better rewards and perks. If your credit isn’t high enough to qualify for the card you’re most interested in, consider working to build your credit score via an secured credit card or a credit card for people with limited credit.
Other benefits
Reward credit cards typically come with card perks like purchase protection, discounts with specific merchants, virtual credit cards for secure online shopping and more. While these may not always translate directly to improving your grocery shopping, they could help otherwise.
How to maximize your credit card rewards while grocery shopping
Getting the most from your grocery shopping comes down to using your card with a grocery store that’s eligible to earn rewards and then redeeming them in the most lucrative way. The best way to redeem grocery rewards is generally as statement credits or depositing them into your bank account.
FAQs
Can you buy groceries online with a credit card?
Yes, you can purchase groceries online via a grocery delivery app like Instacart or sometimes through the grocery store’s website. Some credit cards offer complimentary InstaCart Plus membership.
How do rotating bonus categories work with grocery credit cards?
Most grocery store cards don’t feature rotating bonus categories, but some feature flexible rewards where you’ll earn the most rewards for the eligible purchase type you spend the most on each month. If your card does have rotating rewards, you can check with the issuer to see which purchase types will earn rewards during that quarter.
**All information about American Express cards have been collected independently by CNET. American Express cards are no longer available through CNET.
