Credit Cards Cash Back Credit Cards

Stretch Your Budget Further by Using a Credit Card for Groceries

A rewards or cash back credit card can help you get more for your money at the supermarket.

By Kat Tretina

Edited by Steve Miller

Updated March 10, 2025

If you're like me, going to the grocery store is a gulp-inducing chore. The price of everything, including essentials, has skyrocketed. As of January 2025, the average cost of a gallon of milk was $4.03 – 24% higher than the price in January 2020. And, if eggs are a staple in your diet, the average price of a dozen eggs was $4.95 as of January 2025 — more than three times the average price from five years ago.

I'm always looking for ways to stretch my budget and save money, and using a credit card for groceries is one of my favorite tricks. On average, I spend about $500 per month on groceries. One of my credit cards – the Blue Cash Everyday^® Card from American Express – earns me 3% cash back on U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%). As a result, I earn about $180 in cash back annually for my grocery spending at U.S. supermarkets alone. Cash back is in the form of Reward Dollars that can be redeemed as a statement credit.

Key takeaways

On average, households spent $6,053 on food consumed at home in 2023 (the last available data), a 15% increase from 2021.
Credit cards make it easier to track spending and stick to a budget.
You can earn cash back, points, or airline miles for your grocery purchases.
Some credit cards offer extra perks and savings.

Benefits of using a credit card for groceries

Credit cards often get a bad rap, but if you use them responsibly, they can be helpful tools (and even allow you to earn extra rewards). Especially now when basics are so expensive, credit cards can help you stretch your budget further in the following ways.

Using credit cards makes it easier to track spending

Many credit card companies have spending trackers you can use to view recent transactions and see how much you spend in different categories. And, if you use budgeting apps, syncing the app with your credit card account can allow you to set weekly or monthly spending limits for groceries and help you track every dollar.

You can earn rewards

If you qualify for a rewards credit card, you can earn cash back, airline miles, or points on your purchases. And, with some cards, you can earn a higher rewards rate on grocery store or wholesale club purchases. When you buy your groceries for the week, you can get rewards that you can redeem later for statement credits, bank deposit, gift cards, or travel, helping you maximize your budget.

Plus, some cards have special introductory offers for new cardmembers. If you meet the card's spending requirement within a certain timeframe, you could earn extra rewards. For example, the Capital One Savor Cash Rewards Credit Card offers new cardmembers the following: Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening.

Some cards offer grocery service memberships

Some cards offer extra perks and benefits like statement credits for grocery service memberships.

I have several credit cards; I use different cards for different purchases based on their rewards rates. One of my favorites is the The Platinum Card^® from American Express. While the card has a steep annual fee, it has lots of perks and benefits that I feel justify its cost. One of those benefits I take advantage of is a complimentary Walmart+ membership. Because I use my card to pay the Walmart+ membership fee, I get up to a $12.95 statement credit to cover the cost every month (subject to auto-renewal; enrollment required). By using the card, my membership cost is offset, making it easier (and cheaper) to order groceries for pickup or delivery.

Choosing the right credit card for groceries

There are hundreds of credit cards to choose from, all with their own benefits and drawbacks. When comparing your options, there are three main categories for grocery-focused cards: cash back cards, rewards cards, and co-branded store cards.

Cash back cards for groceries

Cash back credit cards are my personal preference. I don't travel often, so I'd rather earn cash back that I can use for statement credits or bank deposits. Many cards offer higher cash back rates on supermarket purchases. The best cash back credit cards include:

Discover it^® Cash Back(Rates and fees): The Discover it^® Cash Back has a $0 annual fee. You can earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
American Express Blue Cash Everyday: Like the Discover it Cash Back card, the American Express Blue Cash Everyday card also has a $0 annual fee (that's one of the reasons why I chose it for myself!). But, it allows you to earn 3% cash back on U.S. supermarkets, U.S. gas stations, and U.S. online retail purchases (up to $6,000 per year on purchases in each category, then 1%).
Capital One Quicksilver Secured Cash Rewards Credit Card: As a secured card, the Capital One Quicksilver Secured Cash Rewards Credit Card is a good option for those with no credit history or who are rebuilding their credit. It has no annual fee, and you can earn 1.5% cash back on every purchase, every day.

Rewards cards for groceries

Some cards offer points or airline miles rather than cash back. Depending on how you use the card and redeem your rewards, you may be able to get more value for your spending. These are two popular options.

Citi Rewards+^® Card: The Citi Rewards+^® Card has a $0 annual fee, and cardmembers can earn 2X points on supermarkets and gas stations (on the first $6,000 in purchases per year, then 1X points thereafter). Points can be redeemed for gift cards or used to pay for purchases at checkout with select retailers.
PenFed Platinum Rewards Visa Signature^® Card: This card has a $0 annual fee, users can earn 3X points on supermarkets, restaurants; and streaming, cable, satellite, and other pay television/radio services, and there's no cap on how much you can earn.

Co-branded store cards

Some wholesale clubs and big box stores have credit cards that allow you to earn rewards on your grocery purchases. Some popular options include:

BJs Wholesale Club: With a BJ's Wholesale Club credit card, you can earn up to 5% cash back on most club purchases.
Costco: With the Costco Anywhere Visa^® Card by Citi, you can earn 2% cash back on Costco and Costco.com purchases.
Target: With the Target Circle Card, receive 5% off your eligible purchases at Target (in store and online).

Info

Walmart previously offered a credit card in partnership with Capital One. However, that card is no longer available to new customers, and eligible existing customers will be transitioned to a Capital One Quicksilver card.

What to watch out for

Although using a credit card for groceries can help you stretch your food budget further, there are some drawbacks to keep in mind.

Annual fees: Some credit cards charge annual fees — a fee that applies regardless of your credit card use. Before applying for a card with an annual fee, be sure you'll benefit from it enough to justify the cost.
High APR: Credit cards can have high APRs. Currently, the average APR is over 22% (according to the Federal Reserve), so aim to pay off your statement balance in full by the payment due date to avoid interest charges.
Payment due dates: Note your card's payment due dates and set up reminders for yourself in your email or on your phone. Otherwise, you risk missing the due date and incurring late fees, penalty APRs, and negative credit reporting.
Balance: Track your spending and stick to a budget to avoid racking up a balance you can't pay off. If you have trouble controlling your spending, using a secured credit card that has rewards can be a good alternative. You can set a spending limit for yourself based on the card's security deposit (and the card won't allow you to spend over that amount), but you can still earn points or cash back on your purchases.

How to save on groceries

Although everything's more expensive these days, there are several ways to spend less on groceries.

Use an app: Shopping apps like Fetch and Ibotta give you reward points or cash back on your routine purchases. And, some grocery store chains have their own apps you can use to download coupons to help you save on groceries.
Stick to a list: Meal planning and creating a shopping list helps you avoid impulse purchases. And, if you use grocery delivery apps, you can reduce the risk of unnecessary purchases.
Make use of store sales flyers: If you tend to breeze past your grocery store's flyers or toss the circulars in the trash, get in the habit of picking them up and reviewing them. Planning meals based on the flyer's sales and special offers can slash your bill.
Shop salvage food stores: A salvage grocery store is a specialty store that sells food near its expiration date. The food is still good and at a fraction of its original cost. You can find salvage stores near you at BuySalvageFood.
Sign up for the Olio app: The Olio app is a food-sharing app. It connects people in your community who have excess food. Instead of throwing it away or wasting it, those people can list what they have, and neighbors can pick it up. There's no cost — it's simply about reducing waste.

Bottom line

If the cost of eggs and cereal has you anxious about heading to the grocery store, using a credit card for groceries rather than cash or a debit card can be a good idea. You could potentially earn valuable rewards on your purchases, and some cards even offer special discounts and savings.

If you need a new credit card to maximize your food budget, check out the best credit cards for groceries.

Up To 5% Cash Back

Discover it^® Cash Back

4.7

Discover it^® Cash Back

Apply Now

Rates and fees

Current Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

Rewards Rate

Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.

Benefits and Drawbacks