The best credit card for groceries earns 3% to 6% cash back at U.S. supermarkets, has an annual fee that is justified by the rewards you actually earn, and does not cap your grocery spending before you hit your monthly average. Which card that is depends on how much you spend on groceries each month, whether you want cash back or points, and whether you are willing to pay an annual fee.
The average American household spends $475 per month on groceries, according to the Bureau of Labor Statistics. At a 6% cash back rate, that is $342 per year in rewards. At 1% (a typical flat-rate card), it is $57. The right grocery credit card is the difference between earning meaningful rewards and leaving $285 per year on the table.
This guide evaluates the top grocery credit cards across 4 categories: best overall, best with no annual fee, best for groceries and gas combined, and best for groceries and dining combined. Every card is evaluated using our 6-factor rating methodology.
How We Evaluate Grocery Credit Cards
Not every card that advertises grocery rewards is a good card for grocery spending. Some everyday use credit cards cap grocery rewards at $6,000 per year—if you spend $800 per month, you hit that cap in July and earn 1% for the rest of the year. Others exclude warehouse clubs like Costco and Sam’s Club from the “grocery” category, thereby excluding the places where many families do the majority of their food shopping.
We evaluate grocery credit cards on 6 factors:
- Grocery rewards rate. The percentage of cash back or points earned per dollar spent at U.S. supermarkets.
- Annual spending cap. The maximum amount of grocery spending that earns the elevated rewards rate before dropping to a lower tier.
- Annual fee vs. rewards value. Whether the annual fee is offset by the incremental rewards earned compared to a no-fee alternative.
- Merchant coding. Which stores does the card issuer classify as “groceries,” “wholesale clubs,” or “supercenters” This determines whether your purchases at Costco, Walmart, and Target earn the elevated rate.
- Welcome bonus. The sign-up bonus value relative to the spending requirement and the time needed to earn it.
- Secondary rewards. The rewards earned on non-grocery categories (gas, dining, online shopping) make the card useful beyond the supermarket.
Best Overall Credit Card for Groceries
Blue Cash Everyday® Card from American Express
The Blue Cash Everyday earns 3% cash back at U.S. supermarkets on up to $6,000 in annual spending (then 1%), 3% at U.S. gas stations, 3% on U.S. online retail purchases, and 1% on everything else. There is no annual fee.
At $500 per month in grocery spending, this card earns $180 per year in grocery rewards with a zero annual fee. It is the strongest no-fee option for consumers whose grocery spending is concentrated at traditional supermarkets.
Best for: Budget-conscious consumers who want grocery rewards without paying an annual fee. Ideal for households spending under $300 per month on groceries, where the Blue Cash Preferred’s annual fee does not pay for itself.
Capital One SavorOne Cash Rewards
The Capital One SavorOne earns 3% cash back on dining, entertainment, popular streaming services, and grocery stores, with 1% on everything else. There is no annual fee and no spending cap on the 3% categories.
The key advantage over the Blue Cash Everyday is the absence of an annual spending cap. Households spending $800+ per month on groceries earn 3% on every dollar all year. The SavorOne also earns 3% on dining, making it a strong dual-purpose card for food spending both at home and in restaurants.
Best for: High-volume grocery shoppers who want no annual fee and no spending cap. Also strong for households that split food spending between groceries and dining out.
Best Credit Card for Groceries and Gas
The best credit card for gas and groceries earns an elevated rate on both categories without requiring two separate cards. Several cards accomplish this, but the approach varies.
Citi Custom Cash® Card
The Citi Custom Cash earns 5% cash back on your highest eligible spend category each billing cycle, up to $500 in spending (then 1%), and 1% on everything else. There is no annual fee. Eligible categories include grocery stores, gas stations, restaurants, drugstores, and several others.
The adaptive structure means the card automatically applies the 5% rate to whichever category you spend the most in each month. In months when grocery spending exceeds gas spending, you earn 5% on groceries. In road trip months, you earn 5% on gas. This flexibility is unique.
The limitation is the $500 monthly cap. At $500 per month in groceries alone, you earn $300 per year. Beyond that, the rate drops to 1%. For households splitting $500 across groceries and gas, the Citi Custom Cash covers both categories efficiently.
Best for: Moderate-spending households ($300–$500/month combined groceries and gas) who want automatic category optimization without tracking rotating categories.
Pairing Strategy: Two Cards for Maximum Coverage
For households spending more than $500 per month on groceries and gas combined, the optimal approach is a two-card pairing: one card dedicated to groceries (Blue Cash Preferred at 6%) and one dedicated to gas (a card earning 3%–5% at gas stations). This strategy captures the highest rate in each category without being limited by a single card’s caps.
The two-card strategy earns more in total rewards than any single card for households spending $600+ per month across groceries and gas. The tradeoff is managing two cards, two statements, and two payment due dates.
Best Credit Card for Dining and Groceries
The best credit card for groceries and dining earns 3% or more on both categories, eliminating the need for separate cards for eating at home and eating out.
Capital One Savor Cash Rewards
The Capital One Savor earns 4% cash back on dining and entertainment, 3% at grocery stores, 1% on everything else. The annual fee is $95. It also includes dining credits and entertainment perks that offset the annual fee for frequent diners.
For a household spending $500 per month on groceries and $300 per month on dining, the Savor earns $180 in grocery rewards plus $144 in dining rewards—$324 per year. After the $95 annual fee, the net benefit is $229. The breakeven point for the annual fee is approximately $200 per month in combined grocery and dining spending.
Best for: Households that spend a significant amount on both groceries and restaurants. The combined category coverage makes this the strongest single-card option for total food spending.
What Counts as “Groceries” on a Credit Card?
Merchant category codes (MCCs) determine whether a purchase earns the grocery rewards rate or the standard rate. This is one of the most misunderstood aspects of grocery credit cards.
Generally, the following stores code as “groceries” (MCC 5411): traditional supermarkets (Kroger, Publix, Safeway, Albertsons, H-E-B, ShopRite, Stop & Shop), local and regional grocery chains, and some organic/specialty markets (Whole Foods, Trader Joe’s, Sprouts).
The following stores generally do not code as “groceries” despite selling food: Walmart Supercenter (codes as a supercenter, MCC 5311), Target (codes as a discount store), Costco and Sam’s Club (code as warehouse clubs, MCC 5300), and Amazon Fresh or Instacart (may code as online retail, not groceries, depending on the card issuer).
Before choosing a grocery credit card, verify whether your primary shopping destination earns the elevated rate. If you buy most of your food at Costco, a card that excludes warehouse clubs will not deliver the expected value.
How to Maximize Your Grocery Credit Card Rewards
Choosing the right card is only the first step. How you use it determines whether you capture the full value of the reward.
- Track spending against category caps. If your card caps grocery rewards at $6,000 per year, monitor your spending quarterly. Once you approach the cap, shift remaining grocery purchases to a flat-rate card that earns the same percentage on everything.
- Strategically buy gift cards at the supermarket. Many supermarkets sell gift cards for restaurants, retailers, and online stores. Purchasing these gift cards at the grocery store earns the grocery cashback rate, effectively extending your elevated rewards to other spending categories.
- Stack with store loyalty programs. Combine your credit card rewards with the grocery chain’s loyalty program (fuel points, digital coupons, member pricing) to compound savings.
- Pay the statement balance in full every month. This is non-negotiable. Carrying a balance at 20%+ APR erases every cent of rewards earned. A card earning 6% cashback but costing 24% in interest is a net negative.
- Use your grocery card only at grocery stores. Resist the temptation to use your grocery card for non-grocery purchases where it earns 1%. Use a separate flat-rate or category-specific card for other spending.
Grocery Credit Card Comparison
| Credit Card | Grocery Cash Back | Annual Spending Cap | Annual Fee | Gas Cash Back | Dining Cash Back | Best For |
|---|---|---|---|---|---|---|
| Blue Cash Preferred (Amex) | 6% | $6,000 per year | $95 | 3% | 1% | Highest grocery cash back rate available |
| Blue Cash Everyday (Amex) | 3% | $6,000 per year | $0 | 3% | 1% | Grocery rewards with no annual fee |
| Capital One SavorOne | 3% | No cap | $0 | 1% | 3% | Unlimited grocery cash back plus dining rewards |
| Capital One Savor | 3% | No cap | $95 | 1% | 4% | Combined grocery and dining rewards |
| Citi Custom Cash | 5% (top category only) | $500 per month (across all categories) | $0 | 5% (top category only) | 5% (top category only) | Automatic top-category optimization |
*Citi Custom Cash: 5% applies to the highest eligible spend category each billing cycle, not simultaneously across all categories.
Frequently Asked Questions
What is the best credit card for groceries with no annual fee?
The Capital One SavorOne is the best no-annual-fee grocery card for most consumers. It earns 3% at grocery stores with no annual spending cap, plus 3% on dining and entertainment. The Blue Cash Everyday from American Express is a close alternative, offering 3% on groceries, capped at $6,000 per year.
Do Costco purchases count as groceries on credit cards?
No. Costco and other warehouse clubs (Sam’s Club, BJ’s) use a different merchant category code (MCC 5300) than traditional supermarkets (MCC 5411). Most grocery credit cards exclude warehouse club purchases from the elevated grocery rewards rate. The Costco Anywhere Visa earns 2% at Costco specifically, but this is a Costco-specific rate, not a grocery rate.
Is 3% or 6% cash back on groceries better?
It depends on the annual fee and spending cap. The Blue Cash Preferred earns 6% but charges a $95 annual fee and caps grocery rewards at $6,000 per year. The Capital One SavorOne earns 3% with no annual fee and no cap. For households that spend under $265 per month on groceries, the 3% no-fee card yields a higher net value. Above that threshold, the 6% card wins despite the fee.
What is the best credit card for groceries and gas together?
The Citi Custom Cash earns 5% on your top spending category each billing cycle (including groceries and gas) up to $500 per month with no annual fee. For higher-volume spending, pairing a dedicated grocery card (Blue Cash Preferred at 6%) with a gas-specific card produces higher total rewards but requires managing two accounts.
Can I use a grocery credit card at Walmart or Target?
Purchases at Walmart Supercenters and Target generally do not code as “groceries” on credit cards because these stores use supercenter or discount-store merchant codes rather than grocery-store codes. However, standalone Walmart Neighborhood Markets typically code as supermarkets and do earn the elevated grocery rate on most cards.
How much can I save with a grocery credit card?
The average household spending $475 per month on groceries saves $228 to $342 per year with a 4% to 6% grocery card compared to a flat 1% card. Over 10 years, that difference compounds to $2,280 to $3,420 in additional rewards—without changing any spending habits.
