Connect with us

Credit Cards

Fill Your Cart, Not Your Debt: Top Grocery Credit Cards

Published

23 seconds ago

on

Fill Your Cart, Not Your Debt: Top Grocery Credit Cards

Best Credit Cards for Groceries in Canada: Earn Rewards and Save.

Are you looking for ways to maximize your grocery shopping experience? Consider using a credit card that rewards you for your daily essentials. In this article, we’ll explore Canada’s best credit cards for groceries, offering cashback, rewards, and benefits.

Grocery shopping is a necessity, and using the right credit card can make a significant difference. With cashback, rewards, and benefits, you can save money and earn rewards on your daily essentials.

For most households, groceries are an essential component of regular spending. You can cry a little less if you get something in return (aside from the sale on peanut butter) by using credit cards for grocery shopping. But not just any cards. The best credit cards for grocery shopping offer up to 6% cash back on groceries—or 4 points per dollar spent, if that’s more your speed—plus other perks that make using them at your supermarket a smart move. Rewards can add up to $300 or more per year and take a lot less effort than clipping coupons.

Top Credit Cards for Groceries:

1. PC Financial Mastercard: Earn 3% cashback on groceries.
2. CIBC Dividend Visa Card: Earn 4% cashback on groceries.
3. TD Cash Back Visa Card: Earn 10% cashback on groceries in the first 3 months.
4. Scotiabank Scene Visa Card: Earn 5% cashback on groceries.
5. American Express SimplyCash Preferred Card: Earn 2% cashback on groceries.

Benefits of Grocery Credit Cards:

1. Cashback Rewards: Earn money back on grocery purchases.
2. Reward Points: Redeem points for groceries, travel, or other rewards.
3. No Foreign Transaction Fees: Use your card abroad without extra charges.
4. Exclusive Benefits: Enjoy exclusive discounts and perks with partner merchants.
5. Travel Insurance: Get protection against trip cancellations and interruptions.

How to Choose the Best Grocery Credit Card:

1. Consider Your Spending Habits: Choose a card that aligns with your grocery shopping habits.
2. Evaluate Rewards and Benefits: Weigh the rewards against the benefits.
3. Check Interest Rates: Ensure the interest rate is competitive.
4. Read Reviews: Research and compare cards before applying.
5. Calculate Savings: Estimate rewards and savings with a grocery credit card.

What Is Considered a Grocery Store for Credit Cards?

Supermarkets and grocery stores in the U.S. should generally code in the grocery category for credit cards, whereas wholesale clubs, like Costco and Sam’s Club, generally won’t. Note that for American Express cards, in particular, you won’t receive bonus points for purchases at grocery stores outside of the U.S.

Pro Tip:
Make sure to read the fine print on your card’s terms and conditions. Many state outright that stores like Target, Walmart and Costco aren’t considered grocery stores and aren’t eligible for bonus points.

How Do Grocery Reward Credit Cards Work?

Grocery reward credit cards work like any other credit card, except they offer elevated rewards in the form of cash back, points or miles for every purchase you make at eligible grocery stores and supermarkets. The best grocery store credit cards offer higher rewards for grocery spending.

How To Choose a Credit Card for Groceries

Follow these steps when choosing a credit card for groceries:

  • Select a grocery store card based on where you shop the most. For example, a card offering bonus points for an online grocery store isn’t relevant if you only shop for groceries at physical locations. If you tend to do most of your food shopping at warehouse or discount stores, you’re better off choosing a card that offers rewards specifically at your preferred retailer, as most cards that offer elevated rewards on grocery spending exclude those types of stores from the bonus earnings.
  • Think about what type of rewards fit with your lifestyle and spending. For example, Aeroplan points are only valuable to those who fly on Air Canada or partner airlines. Otherwise, a card that earns flexible points or a card may be a better fit. Pay attention to spending caps, too, which can affect bonus earnings.
  • Consider the annual fee. Do you want to pay a yearly fee to earn increased rewards? Usually, the cards with the highest earning potential and additional benefits and rewards often come with higher annual fees. If you prefer a card with no annual fee, a card like the Capital One Savor Cash Rewards Credit Card (rates & fees) might be a better fit.
Pro Tip:
Before you opt for a card without an annual fee, do the math to see how much you can earn at the increased rewards rate offered by cards that charge an annual fee. Depending on how much you spend at grocery stores and in other bonus categories, it may make sense to pay the annual fee.Types of Credit Cards for Groceries

Depending on your preferences and goals, you can choose various types of cards to earn more rewards on your grocery purchases. For example:

  • Cash back grocery cards. Blue Cash Preferred® Card from American Express or Citi Custom Cash® Card
  • Flexible travel rewards grocery cards. American Express® Gold Card or Chase Sapphire Preferred® Card
  • Hotel rewards grocery cards. There aren’t currently any hotel rewards grocery cards on our list.
  • Airline rewards grocery cards. Aeroplan® Credit Card.

Pros and Cons of Grocery Cards

Pros of Grocery Cards Cons of Grocery Cards
Bonus rewards on grocery purchases (cashback, points or miles)
Spending caps (yearly or monthly), which reduce your earning potential thereafter
Additional bonus categories (like restaurants, gas or dining)
Credit score requirements, as higher-tier, best grocery credit cards require good or excellent credit
Welcome bonuses or introductory 0% APR offers
High interest rates if you carry a balance month-to-month
Cards with no annual fee, which can be more cost-effective
Exclusion of wholesale or big-box stores like Walmart or Costco

Are Credit Cards for Groceries Worth It?

Earning significant rewards on grocery store spending is possible if you choose one of the best credit cards for groceries, but the type and amount of rewards you can earn varies depending on your needs and where you shop. Some cards offer rewards at a specific retailer or rewards in other categories, so be sure to select the card that works for your spending habits. You’ll also want to consider whether you’ll benefit most from a grocery store credit card that earns points, miles or cash back.

Benefits outside of rewards-earning can also add value to your credit card, but this depends greatly on your needs. These can come in many forms, from statement credits or lounge access to introductory APRs or free hotel nights. It all depends on what you value the most. Finally, carefully evaluate whether or not paying a fee for card use is a worthwhile expense for you.

Frequently Asked Questions (FAQs):

How can you earn rewards on groceries with credit cards?

Some credit cards offer higher-than-average rewards for supermarkets and other qualifying food merchants. To earn rewards with a grocery credit card, spend the way you normally would at the store and use your grocery credit card to pay for the purchase.

Which credit cards offer the best cash-back rewards on groceries?

The grocery credit cards that offer the best cash-back rewards tend to carry an annual fee. Some of the highest earning cards on groceries include the Blue Cash Preferred® Card from American Express, which earns the following rates: 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, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout and the American Express® Gold Card, which offers 4 points per dollar at U.S. supermarkets and restaurants worldwide (terms apply).

What is the best way to pay for groceries?

The best way to pay for groceries is to use a credit card that offers bonus points or additional cash-back percentages on grocery store or supermarket purchases. One of our favorite credit cards for groceries and supermarket spending is the Blue Cash Preferred® Card from American Express, which earns 6% cash back at U.S. supermarkets up to the first $6,000 spent per calendar year, then 1%.

What’s the best way to use credit cards at grocery stores?

You use credit cards at grocery stores exactly the same way you’d use them anywhere else. Make your purchase in-store or online, using your credit card to pay when you check out. It’s best to use a credit card that offers additional bonus points or cash back for groceries when paying at grocery stores. Always check your statement to ensure you’ve been properly credited for your purchases and make sure to read any exclusions for stores in your card’s terms and conditions.

What is the best credit card for groceries in Canada?

PC Financial Mastercard.

Can I earn rewards on all grocery purchases?

Yes, with cards like CIBC Dividend Visa Card.

What is the average cashback rate for grocery credit cards?

Around 3-4%.

Can I use my grocery credit card abroad?

Yes, with no foreign transaction fees.

Conclusion:

Canada’s best credit cards for groceries offer rewarding benefits and savings. By choosing the right card, you can maximize your grocery shopping experience.

Related Topics:
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Native Async