Which Grocery Cash Back Credit Cards Work Best?
Grocery cash back credit cards can save you hundreds of dollars each year just for buying groceries. Here’s how to pick the card that’s best for the way you shop.
Credit Cards For Grocery Shoppers
We all shop for groceries. Sometimes multiple times per week. Groceries can get expensive. That’s because food can be expensive.
When you’re shopping for groceries, there are two ways you can save money.
The first way to save money on groceries is to be active about it. Study circulars for items on sale, be aggressive about couponing, and be comfortable shopping at new stores if the price for your products is right.
The second way requires less effort. All you need is a credit card.
Specifically, a cash back credit card.
When you pay for groceries using a cash back credit card, you can get up to $5 back for every $100 you spend; but, certain cash back credit cards stretch your grocery dollar particularly far.
What’s the best grocery store credit card out there? It depends on the size of your grocery bills.
What Is A Cash Back Grocery Credit Card?
Cash back credit cards are credit cards that award cash rebates to consumers with everything they purchase.
Typically, cash back credit cards award $1 in cash credits for every $100 spent, with bonus awards for spending in specific categories.
Grocery shopping is one such category. Credit card companies offer cards that pay bonuses of $2 per $100 spent at grocery stores and wholesale clubs such as Costco and Sam’s; and, some offer bonuses that can raise your cash back on groceries up to $5 for every $100 spent.
That’s like getting a 5% discount on everything you buy.
Get More Details On Cash Back Cards
Cash back features aren’t unlimited, however. Credit card companies often limit the amount they’ll award over the course of a year; or lower their rebate rate after a set amount of spending.
Still, you can earn a large cash back rebate using grocery store credit cards — especially if you buy a lot of groceries. There’s nothing to stop you from rotating cards in your wallet to maximize your available rebates.
And, because most cash back credit cards are no annual fee, there’s no cost to carrying multiple cards.
Once your favorite grocery cash back credit card reaches its cash back limit, simply move on to your backup card.
When Your Grocery Bill Is Less Than $61 Per Week
American Express Blue Cash Everyday®
For people who spend less than $61 per week on groceries, on average, the American Express Blue Cash Everyday® card can be an excellent fit and an easy way to earn cash credits.
The American Express Blue Cash Everyday® card gives a $3 cash credit for every $100 spent at grocery stores and wholesale clubs until $6,000 has been spent in a year.
The card also offers an additional $2 cash credit per $100 spent on gas, with no annual limit; an attractive bonus for shoppers whose favorite supermarket offers discounts at a gas station.
Using the American Express Blue Cash Everyday® card can increase your overall savings on groceries and gas.
The American Express Blue Cash Everyday® card works best for modest grocery budgets, and for consumers wanting an easy way to save 3 percent.
The American Express Blue Cash Everyday® does not charge an annual fee.
When Your Grocery Bill Is More Than $61 Per Week
American Express Blue Cash Preferred®
For people who spend more than $61 per week on groceries, the American Express Blue Cash Preferred® card can be a terrific way to maximize your grocery shopping rewards.
The American Express Blue Cash Preferred® card gives a $6 cash credit to consumers for every $100 spent at grocery stores and wholesale clubs until $6,000 has been spent in a year.
This 6% reward is double the reward of American Express’ other cash back grocery card, but unlike that other card, the Blue Cash Preferred® card requires card holders to pay an annual fee of around $100.
If you’re not going to spend at least $61 per week in groceries, in other words, it’s not worth it to have the American Express Blue Cash Preferred®. It’s better to go with a no-annual fee option card instead.
Maxing out your American Express Blue Cash Preferred® card on groceries will earn you $360 in cash credits annually.
The card also offers an additional $3 cash credit per $100 spent on gas, with no annual limit.
When You Have More Than $50,000 In The Bank
BankAmericard Cash Rewards™ credit card series
For people with more than $50,000 to their name, it can pay to have a relationship with Bank of America or Merrill Lynch.
Exceeding this combined amount in your Bank of America checking accounts and Merrill Lynch brokerage accounts grants you access to the bank’s Preferred Rewards program.
Preferred Rewards is an incentive program. It grants discounts on car loans, reductions on mortgage closing costs, and boosts to the cash back awards you’d get as an ordinary BankAmericard Cash Rewards™ credit card holder anyway.
In the Preferred Rewards program, BankAmericard Cash Rewards™ customers get up to $3.50 in cash credit per $100 spent on groceries, with a limit of $350 per year.
This is among the largest cash rewards available from a grocery cash back credit card.
Furthermore, card holders can earn cash credits of $5.25 per $100 spent on gas. This, too, is an industry-leading figure.
See All Benefits Now
Other Grocery Cash Back Credit Cards We Considered
As part of this Grocery Cash Back credit card review, Growella considered more than a dozen grocery-advantaged credit cards from a wide group of credit card lenders.
Some of the cards that we liked, but did not rank as a top performer included the following:
- Chase Freedom®: Pays $5 back for every $100 spent on groceries, with rotating availability
- Barclaycard Rewards®: Pays $2 back for every $100 spent on groceries
- PenFed Platinum Rewards: Pays $3 back for every $100 spent on groceries; requires membership in PenFed Credit Union
- Consumers Credit Union Visa: Pays $3 back for every $100 spent on groceries; requires membership in Consumers Credit Union
- Santander Bravo℠: Pays $3 back for every $100 spent on groceries; requires annual fee after first year
- Hilton Honors™ Card from American Express: Low value per dollar spent on groceries
Where Can I Compare Grocery Store Credit Cards?
Groceries are a major expense in the typical U.S. household. Turn your costs into cash back rewards.
Choose the grocery cash back credit card that’s best for you and remember to maximize your rewards.