What Is the Best Credit Card for Groceries?

Think about this; the most recent spending data from the location intelligence firm Esri shows that an average grocery spending by an average American household is $5,174 annually, about $430 per month. That’s more compared to what Americans spend on dining out (roughly $3,675).

The best credit card for groceries gives you up to 6% cashback at retail stores. While these cards don't include wholesale clubs like BJ's and Costco and giant stores such as Walmart and Target, a cardmember can still take advantage of these benefits at Kroger, Whole Foods Market, and other giant grocery stores.

However, with so many grocery credit cards available, choosing the best one can be a daunting task. For this reason, Rabato scouted the internet and picked 6 best credit card for groceries 2021. We then analyzed the card’s rewards, bonuses, annual fees, and then highlighted their pros and drawbacks. All these are fundamental elements to ponder about when picking the best grocery credit card. Take a peek.

Best Credit Cards for Grocery Shopping for 2021

Listed in no specific order, here is the list of the best reward credit cards for groceries. Shown below is a comparison of the six best grocery credit cards for groceries:

Blue Cash Preferred® Card from American Express

The Blue Cash Preferred® Card from American Express made it into our list for various reasons. First, it offers 6% cashback if a cardholder spends $6,000 on groceries for the first year, and then 1% cashback for the consecutive years. Holders also enjoy the same rate of 6% cashback on select U.S. A streaming services. If you use it on gas and transit station purchases, you also get 3% cashback, and one percent cashback on any other purchase you make.

Considering this high annual rate cashback, this credit card is ideal for big grocery shoppers and people who fuel their vehicles frequently.

Pros

• Cardholders get significant cashback at U.S. supermarkets (6% on up to $6,000 purchases).
• Unlimited 6% cashback on specific streaming United States. services.
• A year of 0% interest on new purchases.
• Spending on U.S. transit and gas stations offers you unlimited 3% cashback.

Drawbacks

• The yearly fee of $95 is high.
• It enforces a 2.7% fee on abroad purchases.

Amazon Rewards Visa Signature Card

If you are a diehard customer on Whole Foods Market and Amazon.com, then you should opt for an Amazon grocery credit card. This credit card earned a spot in our list because it offers 3% cashback on purchases you make on Whole Foods Market and Amazon.com, and there is no annual fee. It also gives you 2% cashback at drugstores, restaurants, and gas stations, and therefore, there is no doubt it is a winner for most regular purchases.

Pros

• Doesn’t charge an annual fee.
• After card membership, cardholders get a $70 Amazon.com gift card without any spending requirements.
• Cardmembers enjoy a 5% cashback at Whole Foods Market and Amazon.com.
• No fee charged on purchases made outside the United States.

Cons

• You must subscribe to Prime membership.
• The 5% cashback is only restricted to grocery purchases made at Amazon.com and Whole Foods Market.

PenFed Platinum Rewards Visa Signature® Card

Regarded as the best credit card rewards for gas and groceries, you can also accumulate additional points on your food credit card shopping every week. You collect 3 points for every buck spent on groceries five, and considering that there is no annual fee, this is an attractive rate. Besides, it is an unlimited-cashback credit card, implying that there is no limit on the amount you can earn. Though it is associated with the U.S. military, civilians can apply for it.

Pros

• No limit on the total cashback you can earn on purchases.
• 5X points on gas are attractive.

Drawbacks

• A membership to a credit union is required.
• 3% bal transfer charges.

American Express® Gold Card

American Express Gold card provides some of the attractive perks and competitive rewards rate on all of your daily purchases. It offers 4X Membership Rewards points restricted to United States restaurants and retail stores across the world(limit set at $25,000 yearly in purchases, then 1X). This is, undeniably, one of the highest rates you can get and therefore makes this card the best credit card for groceries and restaurants.

Besides, if you have an Amex visa and book your travels through Amex.com or with the airline, you get 3X Membership Rewards points. Other purchases earn you 1X Membership Rewards points. Every year, an average American household can get $207 in cashback if they shop at the qualifying stores.

Pros

• Amazing reward programs such as 4X points you get when you eat worldwide and 3X points eligible for those who book flights through amextravel.com.
• Up to $100 airline fees credit and up to $100 credit on a restaurant.
• By spending as little as $4,000 within the first 90 days of membership, you accumulate 35,000 Membership Rewards points.
• Baggage insurance plan that covers up to $1300 for carry-on baggage. It also compensates up to $550 for checked baggage that is lost or damaged.
• No fee imposed on purchases made abroad.

Cons

• High annual fee of $250.
• Being a charge card, a cardmember must clear the balance each billing cycle.

Blue Cash Everyday® Card from American Express

It is a free-annual fee credit card, and a great alternative to the Blue Cash Preferred® Card from American Express. Members get three percent cashback for making purchases in U.S. supermarkets, with a spending limit set at $6,000 per annum (then 1%). Each year, an average American household can get $155 in cashback if they shop at the qualifying stores.

Cardholders also earn 2% cashback at specific U.S. department stores and gas stations and one percent on everyday purchases.

Pros

• 3% cashback by shopping at U.S. supermarkets (up to $6,000 yearly).
• Unlimited 2% cashback at U.S. departmental stores and gas stations.
• Amex offers - gives you credit statements.
• 0% APR on the new purchases made within the first 1 ¼ years.

Cons

• A fee of 2.7% charged on the purchases made outside the U.S.
• Not suitable for non-grocery customers.

Amex EveryDay® Preferred Credit Card

This credit card closes our list of the best credit card for cashback on groceries. After signing up your membership, you earn 15,000 points if you spend $1000 in purchases within the first 90 days. After that, you earn 3X points on purchase (up to $6,000 per year) at U.S. retail stores, 2X points at U.S. gas stations, and 1X points on regular purchases.

Pros

• Competitive rewards on regular purchases.
• Frequent spenders earn more points.
• High savings when you make large purchases.

Cons

• High annual fee of $95.
• Limits on earnings may minimize grocery rewards.
• A welcome bonus isn't great for new cardmembers.
• To maximize rewards, a cardholder should use the card frequently.

How to Choose Best Grocery Credit Card

Choosing the best shopping credit card will allow you to maximize rewards and bonuses. Here are vital questions you should answer before selecting any particular credit card for groceries:

• What is your monthly/annual total spending on groceries?

• Are you looking forward to earning a welcome bonus after spending a certain amount of money on qualifying purchases?

• Do you want the credit card exclusively for groceries or groceries and other purchases?

• Would you prefer to earn non-variable rewards? Or do you prefer keeping up with reward categories, including variable ones?

• Are you comfortable with incurring a certain fee each year in exchange for a higher rewards rate?

Ideally, you are looking at the following aspects:

• Grocery spending level- When choosing the best credit card for cashback on groceries, you should consider your grocery spending level. Some credit card for groceries has limited bonus rewards that a cardholder can earn on buying groceries quarterly or yearly. For example, the Blue Cash Preferred Card from American Express makes 6% when you spend the first $6,000 per year in U.S. retail stores. So, if your purchases exceed $6,000, you would have gone past the limit of the grocery card's bonus rewards, and therefore you would be earning much less at a low rate of 1%.

• Multiple grocery credit cards- Using several credit cards for grocery shopping will help you to maximize your rewards earnings. For instance, you could opt for the Blue Cash Preferred Card from American Express to spend your first $6,000 in a U.S. supermarket and then hop to a different grocery credit card that earns you bonus rewards for the rest of the year. However, if you don’t want to use several credit cards, you can apply for a shopping credit card that provides unlimited grocery rewards. If you go for the latter, be aware that you may not get high cashback rates on your grocery purchases.

• Limited/unlimited grocery credit card- Do you need a card that limits you on where and how much you can earn? For instance, if you sign up for the Amazon grocery credit Card or Whole Foods credit card, you will be able to earn 5% cashback on purchases made only at Amazon.com and Whole Foods Market. Other cards will earn you a bonus on purchases made from different grocery stores.

• The grocery credit card's annual fee- Some credit cards have a $0 annual fee, but that doesn’t mean they are the best credit card for cashback on groceries. There is always a catch. As with all grocery credit cards, it is imperative to pay off your outstanding monthly balances to enhance your bonus rewards. Note that if those balances are not paid off, the accumulated interest charges can be overwhelming and surpass the value of your rewards. Also, don’t be tempted to spend more than usual to collect more bonuses.

Here is a sneaky peek of how much you would earn by using each of the listed cards.

Conclusion

You will always need groceries- so, why don’t you save some bucks on groceries by opting for the best credit card for cashback on groceries? The right card will earn you rewards and bonuses on U.S. supermarkets purchases and also online credit accounts for shopping.

However, remember that the best grocery store credit card may not be suitable for other purchases, such as dining out at restaurants. In this instance, you would want to opt for the best credit card for restaurants and groceries.

So, before you plan any grocery store shopping, ensure at least you have one of the above credit cards in your handbag/wallet. Soon, you will be earning plenty of cashback or travel rewards.