Best Grocery Credit Cards for August 2020
This article was last updated Jul 31, 2020. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
If you have a large family to feed or simply prefer to cook at home, you most likely spend a large amount on groceries each month. By using the right credit card, you can earn cash back or points on those purchases — which can help offset your monthly grocery bill.
We break down the pros and cons of the top credit cards that can help offset your grocery expenses to help you determine which is the right fit for you.
- Best overall grocery credit card: Blue Cash Preferred® Card from American Express
- Best grocery card with rotating categories: Discover it® Cash Back
- Best grocery card with no annual fee: Blue Cash Everyday® Card from American Express
- Best for Whole Foods and Amazon: Amazon Prime Rewards Visa Signature Card
- Best grocery card for wholesale clubs: Costco Anywhere Visa® Card by Citi
- Which grocery credit card should you choose?
How we chose the best credit cards for groceries
When choosing a grocery credit card, the goal is to earn the highest rewards rate on grocery purchases without paying high annual fees. If the card also lets you earn rewards in other popular spending categories, such as gas, dining out and travel, that’s an added bonus.
Based on our research of cards available through CompareCards, as well as top cards offered by major issuers, these are our top picks for the best grocery rewards credit cards.
Best overall grocery credit card: Blue Cash Preferred® Card from American Express
This offer and/or promotion may have since changed, expired, or is no longer available.
The Blue Cash Preferred® Card from American Express is our top overall pick since it offers the highest cashback rate currently available at U.S. supermarkets. Cardholders earn 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions and 1% Cash Back on other purchases.
Cash back is earned in the form of Rewards Dollars, which can be redeemed for statement credits when your available balance reaches 25 Rewards Dollars or more.
What else we like. The Blue Cash Preferred® Card from American Express offers a $250 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.
Additional Blue Cash Preferred® Card from American Express benefits:
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- Car rental loss and damage insurance if your rental car is damaged or stolen
- 24/7 access to medical, legal, financial or other select emergency coordination via the Global Assist hotline
- Return protection of up to $300 per item, up to a maximum of $1,000 per calendar year
- Free two-day shipping through ShopRunner (enrollment required)
- Terms Apply.
What to look out for. The highest cashback rate is limited to the first $6,000 spent in U.S. supermarket purchases each year. Once you reach that amount, those purchases will only earn 1% cash back.
That said, if you max out the spend cap, you’ll earn $360 at the end of the year just on those purchases alone. However, once you factor in the $95 annual fee, that amount essentially drops to $265.
To see rates & fees for Blue Cash Preferred® Card from American Express please click here.
Read our Blue Cash Preferred® Card from American Express review.
Best grocery card with rotating categories: Discover it® Cash Back
The Discover it® Cash Back card offers a generous cashback rate in popular spending categories — such as groceries — that rotate quarterly.
Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. During 2020, the Discover cashback calendar includes grocery stores, wholesale clubs, Target.com, Walmart.com and more as bonus categories.
Additionally, for new card members only, Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match. For example, if you make $1,500 in purchases in the 5% bonus category each quarter, you’ll earn $300 cash back in one year. Once you factor in the cashback match sign-up bonus, that amount will jump to $600 in the first year of card membership.
You can redeem your cashback rewards as direct deposits, statement credits, gift cards, instant e-certificates or charitable donations. You can also use cash back to pay for merchandise at Amazon.com and Paypal.
What else we like. The Discover it® Cash Back card offers an introductory APR on purchases of 0% for 14 months. After that, a regular APR of 11.99% - 22.99% variable applies. The card also offers an intro APR on balance transfers of 0% for 14 months, then a regular APR of 11.99% - 22.99% variable.
Additional Discover it® Cash Back benefits:
- $0 annual fee
- Free access to your FICO credit score through Discover Scorecard
- Social Security number alerts
- 100% U.S.-based customer service
What to look out for. You can only earn the elevated rewards rate on the first $1,500 spent in bonus categories each quarter.
Read our Discover it® Cash Back card review.
Best grocery card with no annual fee: Blue Cash Everyday® Card from American Express
This offer and/or promotion may have since changed, expired, or is no longer available.
For those who want to earn cash back at U.S. supermarkets without paying an annual fee, the Blue Cash Everyday® Card from American Express could be a good fit. Cardholders earn 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 2% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases. Additionally, the $0 annual fee card offers a $150 statement credit after you spend $1,000 in purchases on your new card within the first 3 months.
Cash back, which is earned in the form of Rewards Dollars, can be redeemed for statement credits.
What else we like. The Blue Cash Everyday® Card from American Express comes with an intro APR of 0% on purchases for 15 months on purchases, then 13.99%-23.99% variable APR.
Additional Blue Cash Everyday® Card from American Express benefits:
- Car rental loss and damage insurance
- Global Assist Hotline
- Free ShopRunner membership
- Year-end summaries
- Terms apply.
What to look out for. Similar to the Blue Cash Preferred® Card from American Express, the Blue Cash Everyday® Card from American Express limits the amount of cash back you can earn at the higher rate to $6,000 per year. Once you reach that amount, you will only earn 1% cash back at U.S. supermarkets.
If you max out the $6,000 spend cap, you will earn $180 back on those purchases.
To see rates & fees for Blue Cash Everyday® Card from American Express please click here.
Read our Blue Cash Everyday® Card from American Express review.
Best for Whole Foods and Amazon: Amazon Prime Rewards Visa Signature Card
If you regularly buy groceries from Whole Foods or Amazon, you should look at the Amazon Prime Rewards Visa Signature Card. Cardholders earn 5% back at Amazon.com and Whole Foods Market, 2% back at restaurants, gas stations and drugstores, 1% back on all other purchases.
You can redeem rewards for Amazon purchases, gift cards, statement credits, direct deposits and more.
What else we like. Along with rewards on every purchase, Amazon Prime Rewards Visa Signature Card holders earn a $70 Amazon.com Gift Card instantly upon credit card approval.
Additional Amazon Prime Rewards Visa Signature Card benefits:
- Travel and emergency assistance, including legal and medical referrals
- Lost luggage reimbursement for lost or damaged luggage, up to $3,000 per passenger
- Baggage delay insurance for baggage delays over six hours, up to $100 per day for three days
- Travel accident insurance of up to $500,000
- Auto rental collision damage waiver to cover theft or collision damage
- Purchase protection for damage or theft, up to $500 per claim and $50,000 per account
- Extended warranty protection for one year past the U.S. manufacturer’s warranty, on eligible warranties of three years or less
What to look out for. Although the Amazon Prime Rewards Visa Signature Card comes with a $0 annual fee, it does require Prime membership — which runs $119 per year.
Best grocery card for wholesale clubs: Costco Anywhere Visa® Card by Citi
If you prefer purchasing food and other household items in bulk from Costco, the Costco Anywhere Visa® Card by Citi would be a smart choice. Cardholders earn 4% cash back on eligible gas for the first $7,000 per year and then 1% thereafter, 3% on restaurants & travel, 2% at Costco & Costco.com, 1% on all other purchases.
What else we like. The Costco Anywhere Visa® Card by Citi comes with a $0 annual fee. But keep in mind that you will be responsible for paying an annual Costco membership fee of $60 (for the Gold Star membership) or $120 (for Executive membership).
Additional Costco Anywhere Visa® Card by Citi benefits:
- Damage and theft purchase protection for items that are damaged or stolen within 120 days (90 days for New York residents)
- Extension of the manufacturer’s warranty
- Access to exclusive events and advance ticket sales through Citi Entertainment
What to look out for. Cashback rewards can only be redeemed for merchandise or cash back at Costco warehouses located in the U.S. (including Puerto Rico). Also, rewards are only distributed once per year (after your February billing statement closes), and must be redeemed by Dec. 31 of the year in which they were issued.
Which grocery credit card should you choose?
While each of the cards in this post allow you to earn rewards on grocery purchases, the right one for you comes down to where you spend the most. For example, if you want to earn the highest amount of cash back on U.S. supermarket purchases, the Blue Cash Preferred® Card from American Express is the best choice. But if you frequently buy groceries and gas from Costco, the Costco Anywhere Visa® Card by Citi may be a better fit.
The information related to the Amazon Prime Rewards Visa Signature Card has been independently collected by CompareCards and has not been reviewed or provided by the issuer of this card prior to publication.
