How to maximize bonus points on grocery purchases

A key factor in selecting the right credit card is to compare bonus categories to find one that aligns with your spending habits. This can be quite perplexing, as each issuer defines categories differently. For instance, while some refer to the bonus category as U.S. supermarkets, others simply call it grocery stores. Is there a distinction?

Unfortunately, there is. Each issuer that provides this bonus category has its own specific criteria, making it a challenge to determine which purchases will actually earn rewards with each card. Typically, the bonus is based on where you shop rather than what you purchase.

Let’s take a closer look at some definitions and distinctions within the grocery bonus category.

American Express cards

First, let’s take a look at the different Amex cards that feature a grocery spending bonus category.

"U.S. supermarkets"

American Express offers multiple cards that reward grocery purchases, categorizing this as "U.S. supermarkets." Amex maintains a standardized list of stores that typically qualify for the bonus across its card offerings.

According to Amex, this category includes stores that provide "a diverse range of food and household items such as meat, fresh produce, dairy, canned and packaged goods, household cleaning supplies, pharmacy items, and pet products." Examples of eligible retailers include:

• ALDI
• FreshDirect
• Gelson's
• Hy-Vee
• Kings Food Markets
• Meijer
• ShopRite
• Smart & Final
• Stop & Shop
• Trader Joe's
• Vons
• Whole Foods
• Winn-Dixie

This category does not include specialty stores (like fish markets and wine shops), superstores (such as Target and Walmart), or warehouse clubs (like BJ's Wholesale Club).

However, as we will discuss later, there is still a way to shop at some of these retailers and still qualify for the "U.S. supermarkets" bonus.

The list provided by Amex is not comprehensive. For instance, I’ve used my American Express® Gold Card at my local Harris Teeter, and it consistently registers as a supermarket purchase on both cards. If you shop at a supermarket chain similar to those on the Amex list, you're likely to earn bonus rewards with your eligible Amex card.

Amex cards that provide rewards for grocery shopping at U.S. supermarkets include:

• American Express® Gold Card — 4 points for every dollar spent on up to $25,000 in purchases each calendar year; then 1 point per dollar
• Blue Cash Preferred® Card from American Express — 6% cash back on grocery purchases at U.S. supermarkets up to $6,000 annually, then 1% (Cash back is awarded in the form of Reward Dollars that can be redeemed as a statement credit or during Amazon.com checkout).
• The Amex EveryDay® Preferred Credit Card from American Express — 3 points per dollar on up to $6,000 in purchases each calendar year; then 1 point per dollar
• The Amex EveryDay® Credit Card from American Express — 2 points per dollar on up to $6,000 in purchases per calendar year; then 1 point per dollar
• Hilton Honors American Express Card — 5 Hilton Honors points for every dollar spent
• Hilton Honors American Express Surpass® Card — 6 Hilton Honors points per dollar

The information for the Amex EveryDay card and the Amex EveryDay Preferred card has been independently gathered by Dinogo. The details on this page have not been verified or provided by the card issuer.

Capital One Cards

Capital One offers only two cards that categorize grocery stores as a specific bonus category, and their requirements differ from those of Amex. Let’s explore them.

"Grocery stores"

According to Capital One, the grocery stores category encompasses:

• Supermarkets
• Specialty markets
• Dairy product shops
• Meat lockers
• Freezer stores

Exclusions clearly stated on Capital One's website include superstores such as Walmart® and Target®.

Capital One provides slightly more leeway regarding what transactions earn rewards in this category.

In contrast to Amex, you can earn cash back at smaller specialty stores. For example, I frequently shop at a local butcher, which typically doesn't register as a supermarket for Amex. However, the Capital One Savor Cash Rewards Credit Card will recognize it as a grocery store for bonus rewards.

Capital One cards that provide rewards for grocery purchases include:

• Capital One Savor Cash Rewards Credit Card — 3% cash back (not applicable at superstores like Walmart® and Target®)

Bank of America cards

Bank of America categorizes grocery stores similarly to Capital One, but with some key differences.

"Grocery stores"

According to Bank of America, the following purchases fall under its grocery store category:

• Grocery stores/supermarkets
• Freezer/meat lockers
• Candy, nut, or confectionery shops
• Dairy product shops
• Bakeries
• Wholesale clubs

Bonus rewards on your sweet tooth? Absolutely!

When it comes to wholesale clubs, Bank of America stands out as the only issuer that includes them in its grocery rewards category.

This is a significant exception, as wholesale clubs usually offer a wide range of products beyond standard groceries. This means you could rack up bonus rewards from Bank of America on purchases like clothing, furniture, or even electronics such as computers and tablets.

Bank of America has just one card that provides rewards for grocery purchases:

• Bank of America® Customized Cash Rewards credit card — 2% cash back at grocery stores and wholesale clubs on the first $2,500 spent in combined choice category/grocery store/wholesale club purchases each quarter, then 1% thereafter.

Chase

"Grocery stores"

Chase excludes superstores and warehouse clubs from its "grocery store" bonus category. Here’s the complete list of what Chase states doesn’t qualify:

• Walmart
• Target
• Large stores that offer a wide range of products, including groceries, like warehouse clubs and discount retailers, as well as some smaller outlets such as drugstores and specialty grocery shops.
• Purchases made at gas stations run by merchants who also operate grocery stores.
• Delivery services, unless they are specifically categorized as grocery store purchases by the merchant.

Chase cards that provide rewards for grocery purchases:

While Chase doesn't offer any cards with a fixed grocery store bonus category, it does have two cards that allow you to earn rewards on grocery spending:

• Chase Freedom Flex® — 5% cash back on quarterly rotating categories (up to $1,500 in spending per quarter; then 1%), which may include grocery stores.
• Chase Sapphire Preferred® Card — 3 points per dollar on online grocery purchases (excludes Target, Walmart, and wholesale clubs).

Retailers that usually don't register as grocery stores

• Walmart (notably, Walmart Neighborhood Markets usually do qualify as grocery purchases)
• Target
• Costco (notable exceptions apply for Bank of America cards)
• B.J.'s (also an exception for Bank of America cards)
• Sam's Club (similarly an exception for Bank of America cards)

Grocery delivery services

Several grocery delivery services collaborate with merchants. For example, Instacart provides delivery from thousands of local grocery stores. Most issuers, including Amex and Chase, categorize Instacart orders as grocery/supermarket purchases.

This means that even if you're buying from a merchant like Costco, which is generally excluded from category bonuses (with Bank of America as an exception), you can still earn a bonus by using Instacart or another delivery service.

In conclusion

This isn't a comprehensive list of every card that provides rewards for grocery spending, but it offers insight into what the leading issuers consider eligible for their food-shopping bonus categories.

While it's beneficial when issuers clearly outline the terms for what qualifies for a bonus category, it can still be a bit unpredictable. If you're unsure whether a specific merchant will yield rewards with your card, give it a try. At worst, you might miss out on bonus rewards for your $30 grocery purchase, but you'll know to choose a different credit card next time.