Since Capital One ended their relationship with Walmart, I am looking for the best Grocery credit card with the highest cash back?
Hey KMV!
Isn’t that Capital One/Walmart news a bummer!? Hopefully we’ll see Walmart come out with a new rewards credit card in the near future.
In the meantime, I can help with this grocery credit card question.
First, I have an article on the best credit cards for groceries that you may want to check out: Best Credit Cards for Groceries in 2024
But to go a little deeper: Groceries as a rewards category are a little tricky.
Credit card rewards categories are determined by merchant codes (MCCs), meaning some cards may not give you the “grocery cash back” rate of return on your Walmart shopping because the Walmart merchant code doesn’t match the requirement for grocery rewards.
I have an article explaining this here.
So, for example, the very best cash back on groceries is the 6% cash back from the Blue Cash Preferred Card by American Express. But that card won’t award you 6% back at Walmart because it doesn’t have a merchant code that lines up with the “U.S. Supermarket” requirement that Amex places on that card. So you’d need to buy your groceries at a place like Kroger, for example, to meet the requirements to earn 6% back with this card.
If you’re doing all of your grocery shopping at Walmart, I’d suggest checking out the U.S. Bank Shopper Cash Rewards card to see if it matches what you’re looking for. It allows you to earn 6% back at a couple of stores each quarter, and Walmart is an option.
That being said, patience might pay off with Walmart. You might just want to use a generic 2% cash back credit card at Walmart between now and when they come up with a new credit card to replace the Capital One offering.
Hope this helps!
Nick
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Thank you for the reply. I only signed up with Capital one for the Walmart 5%. Would I cancel the card? I have only had it a few years.
My Discover card is giving 5% for grocery stores now thru Dec. What’s funny is what they consider a grocery store! We’ve all heard Clark tell us that Wal-Mart is the biggest grocery store (Kroger is 2nd). But Discover Card doesn’t consider WM to be a Grocery! So no 5% there.
When selecting the best cash back credit card for groceries, consider factors like the cash back percentage on grocery purchases, annual fees, additional benefits, Liteblue and any other rewards or perks.
Capital One has a no-fee card that pays 3% for groceries, but not at big box stores like Walmart. Another key factor for me is redemption options. I prefer direct deposit to a checking account, but few cards offer this. Capital One has the option of sending you a check for your rewards.
Sears has a Citibank-backed card that pays 5%, but their only redemption option is gift cards.
PayPal has a Mastercard backed by Synchrony Bank that offers 3% on online, not in-store, purchases that have PayPal as an option (vs. entering it as a credit card).
Citi has a card that offers 5% for your top spending category, but my guess is that excludes big box stores.
My Discover IT card has a cashback of 5% on groceries AND Walmart thru Sept.
Sears? I thought they were long gone!
See: https://www.citi.com/credit-cards/shop-your-way-credit-card
Shop Your Way Mastercard® | Citi.com
Earn Shop Your Way reward points on everyday eligible purchases with the Shop Your Way Mastercard.
www.citi.com
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5x on ligible purchases at gas stations
3% in points on eligible purchases at grocery stores & restaurants
On the first $10,000 of combined gas, grocery and restaurant purchases per calendar year,
2% in points on eligible purchases at Shop Your Way Merchants (K-Mart, Seats)
1% in points on all other eligible purchases
Up to $225in Statement Credits
Earn a $75 statement credit for every $500 spent, up to $225, on eligible purchases in the first 90 days after you are approved for a new Shop Your Way Mastercard®. Valid for new accounts opened 3/1/24 - 9/30/24.
The caveats: this card isn’t for those who don’t pay their balances in full, for their interest rates and late fees are exorbitant. Their redemption options are only gift cards (not discounted) selected services and items sold by Shop Your Way Merchants in stores or online. Shop Your Way Points are valid through the end of the quarter following one year from the date they were awarded.
I thought Sears was completely gone. But there are 13 left! Did not know that!
I would
Be curious if the Amex does work at wmt neighborhood markets, I believe the card works when you order groceries online to be delivered per a Reddit thread.
Don’t cancel it. If the card is not convenient to use af the moment just leave it without uae it. Closing a line of credit will affect your overall credit negativity. I am pretty sure the Walmart-CapitalOne card do not have any annual fee so you shouls be good on that side.