The best grocery rewards credit cards can put a lot of money back in your wallet, but you must choose wisely. According to a new report, you could earn big if you pick the right card.
A closer look at spending caps, perks, and other details can help maximize your grocery rewards.
Rewards Credit Cards
Credit card companies offer various grocery rewards cards, but not all are equal. Many grocery rewards credit cards have a fixed rate for supermarket purchases, but some provide rotating bonus categories that can boost your earning potential.
For example, a credit card allows you to activate 5% cash back in different shopping categories each quarter, including grocery stores, restaurants, and gas stations. The card has no annual fee; the first year’s spending is matched to maximize your rewards.
Other cards earn you points, which can be redeemed for cash gift cards or even travel miles. Suppose you’re interested in earning cash back on your supermarket purchases. A rewards credit card might be a better option if you want a more beneficial credit card. This card provides an unlimited 3% cash back on these purchases, except for superstores.
A loyalty program may make sense if you have a favorite store or brand. Choosing a store-branded card could be worth it, but it also depends on whether you’re willing to pay an annual fee. Cards with higher rewards rates often have a yearly fee, but some fees are waived for the first year.
Mobile Apps
Grocery rewards programs are a core pillar of the credit card industry, with dozens of issuers offering Americans the ability to earn points or cash back on groceries. In addition to traditional grocery store loyalty programs, several grocery delivery services provide their rewards. Most credit card issuers code these orders as groceries/supermarkets, so you can often get a credit card bonus when shopping for food using these services.
Many grocery retailers also create mobile apps to encourage and incentivize loyalty. Keeps the loyalty program relevant to each customer and drives engagement.
The free app has an easy-to-use interface and offers a variety of ways to earn cash back on grocery, retail, and other purchases. For example, you can add items to a digital shopping list in the app and then take a photo of your receipt to receive your earnings. You can also use the app to find coupons and weekly ads at participating grocery stores.
Loyalty Programs
Some grocery and food and beverage loyalty programs offer perks beyond traditional cash rewards. These include gift cards, free or high-speed delivery, and branded merch. They can also gamify their programs, rewarding participants for completing daily tasks, giveaways, or winning contests. These rewards help set grocery brands apart from the competition and are a great way to build customer loyalty.
One major issue with grocery credit card rewards is that card issuers often exclude certain purchases from earning bonus points, such as those made at superstores or warehouse clubs. It has been found in a study that families who spend $100 per week on groceries could lose out on receiving over $300 in rewards each year. Reviewing your credit card’s terms and conditions meticulously to verify if grocery purchases qualify for bonus rewards is crucial. If you’re looking to make purchases usually excluded from credit card rewards, consider the Blue Cash Preferred Card from American Express or the Capital One SavorOne Cash Rewards Credit Card, as they offer rewards on these purchases. Others, including the Target REDcard(tm) Credit Card and the H-E-B Visa Signature(tm) Credit Card, provide a more comprehensive grocery rewards program with 5% back on qualifying H-E-B brands and Favor deliveries and 1.5% back on other purchases.
Online Shopping
Most grocery chains offer loyalty programs, some free and others with an annual fee. The free Winn-Dixie Rewards program rewards members for shopping at the supermarket chain, including deals of the week, reward boosters (double points for select purchases), and “mystery bonus” points that let shoppers earn extra points for specific items. However, some exclusions apply, such as tobacco, lottery tickets, check cashing fees, and money orders.
In addition to the free online platform, the retailer offers a mobile app that allows customers to check their balances, find deals, make purchases, and receive e-coupons. The supermarket also offers free delivery and click-and-collect options to boost loyalty. Customers earn fuel points to save on gas purchases.
Many credit cards offer elevated grocery rewards, but choosing the right one is essential for your spending habits. For example, the $0-annual-fee Citi Custom Cash Card automatically pays 5% cash back in your highest-spending eligible category each month, which includes groceries. Other cards that offer elevated grocery rewards include the Chase Freedom Flex and Discover it Cash Back, which pays 2% back on groceries and other everyday expenses.
