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The Best Credit Card for Groceries

Amazon is continuing it's creep into your household. Tablets, TV, personal assistants, same day delivery, and yes, even groceries. As the proud new owners of Whole Foods, Amazon has started to aggressively discount everyday food items for members of Amazon Prime. This seems like a great deal for those avid Amazon users that also enjoy some organic kaleamole, but as you go to swipe your card to pay for your asparagus infused water, the best card to use for your groceries might surprise you. Lettuce explain.  

The USDA figures that a couple that spends a moderate amount on groceries needs to budget about $600 a month in order to keep food on the table. If you're shopping at Whole Foods as an Amazon enthusiast, the Amazon Prime credit card is the natural choice. Earning 5% cash back on Whole Foods and Amazon purchases, you'll earn $360 in cash back on your groceries each year. We won't even get into the amount of cash you'll save on your midnight Amazon retail therapy.  

The Amazon Prime Visa card doesn't have an annual fee, but you do have to be a Prime Member to maintain your 5% earning rate. For non-prime members the rate drops to 3%. In addition to 5% cash back, Prime card holders are also eligible for 2% cash back on dining out and drugstores, and 1% on everything else. Don't bother pulling your card out for the non-Amazon categories though. Uber's credit card will net you 4% on dining without an annual fee.

It's pretty important to remember that Whole Foods may be more than 5% more expensive than your local grocer. Don't let the rewards fool you. Even with discounted prices Whole Foods may not be the best way to spend your cheddar.


For those that prefer to pick their groceries up at the local grocery store, the Blue Cash Everyday Preferred from American Express (what a mouthful) will be your best bet. You'll pay a $95 annual fee, but you'll also earn a $200 new customer bonus if you spend $1,000 in the first 3 months of account opening, so that negates some of the sting from the annual fee. You'll earn 6% cash back on $6,000 worth of groceries each year. (It's a standard rate of 1% after that, which we can all agree to throw tomatoes at.) Keep in mind that department stores like Target and Walmart won't count as grocery stores. Sorry Target, we still love you.

If Walmart is your go-to for groceries, we are sorry. Also, use a wallet staple like Blispay to earn 2% cash back on all of your purchases and call it a day. 2% back without an annual fee will net you a cool $144 in cash back over the course of a year without any hassle. 

Don't forget to stack your earning with any coupon apps like Ibotta. Ibotta is our jam for earning cash back on groceries we're going to buy anyway, and a great way to save money on generic items or fresh produce, which can be hard to coupon for otherwise. Did we mention they offer coupons for alcohol in states that don't suck the fun out of everything? We're looking at you North Dakota.

In conclusion, you need to get your eats on and you might as well earn all the cash back at the same time. The card you choose to use should depend on where you shop. Plain and simple. If you let your card dictate where you shop, you'll end up spending more than you should.


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