Best Credit Cards for Earning 5% Cashback on Groceries

Discover the best credit cards for 5% cashback on groceries in this ultimate guide. We’ll explore grocery rewards, cashback credit cards, credit card offers, and practical strategies to maximize cashback on your grocery spending. Compare top cashback cards, learn about best grocery credit cards, and find high cashback cards that help you save more on everyday purchases.

When it comes to everyday expenses, groceries consistently rank as one of the largest segments of most household budgets. According to the U.S. Bureau of Labor Statistics, the average American household spends over $4,900 annually on groceries alone—a figure that’s expected to rise in response to economic changes and inflation. If you’re looking to offset these costs, focusing on cashback credit cards that offer 5% cashback on grocery purchases can be a game-changer.

In this guide, we will walk you through the best credit cards for grocery cashback, explain how credit card offers and rewards credit cards work, and provide actionable strategies on how to maximize cashback. You’ll learn:

• Which top cashback cards are best for specific spending habits.
• How 5% cashback on groceries can significantly reduce your monthly expenses.
• The difference between best grocery credit cards and general-purpose cashback rewards programs.
• How to avoid hidden fees, complicated reward structures, and pitfalls that can erode your savings.

By the end of this article, you’ll have a solid grasp on which high cashback cards suit your lifestyle and how to use them to your advantage. Our goal is to help you pick the best cashback programs, ensure you make informed decisions, and ultimately, keep more money in your pocket every time you check out at the supermarket.

Why 5% Cashback on Groceries Matters

5% cashback rate might seem like just a small number on paper, but in practice, it can translate into hundreds of dollars saved per year. Here’s why:

1. Groceries Are Essential: Unlike other spending categories (such as travel or luxury goods), groceries are a non-negotiable budget item. No matter what, you have to eat. Maximizing your return in a category you spend on consistently can have a substantial impact on your annual budget.

2. Inflation and Rising Food Costs: Food prices often rise faster than other consumer goods. Having a cashback credit card that directly tackles these increases helps mitigate the sting of inflation. Even a few percentage points saved can make a real difference when multiplied over 12 months.

3. Cumulative Savings: A 5% rebate on an average of $400 of grocery spending per month equates to $20 in cashback, which adds up to $240 in savings per year. If your grocery bill is higher, your total savings will be even greater.

4. Additional Perks: Many rewards credit cards also offer welcome bonuses, loyalty points, and other features like purchase protection or extended warranties. By focusing on grocery spending, you often gain a range of perks beyond just cashback rewards.

5. Opportunity to Stack Rewards: Some programs allow you to combine credit card offers with supermarket loyalty programs or coupon apps, effectively stacking multiple layers of savings. This maximize cashback approach can lead to deep discounts on everyday items.

Overall, investing in a grocery cashback card can help maintain financial stability, especially for families and individuals looking to keep their grocery bill in check without sacrificing the quality of their meals.

Key Credit Card Terminology Explained

 Before diving into the best credit cards for grocery spending, let’s clarify some common credit card terms that will help you navigate offers and make an informed decision.

1. Annual Percentage Rate (APR)

   • This is the annual interest rate charged on balances carried over month to month. While we always recommend paying your balance in full to avoid interest charges, the APR can be crucial if you ever need to carry a balance.

2. Annual Fee

   • Some high cashback cards come with an annual fee. In many cases, the reward structure can offset this cost, but it’s essential to ensure you’re earning enough rewards to justify the expense.

3. Sign-Up Bonus / Welcome Offer

   • Many top cashback cards offer a one-time bonus (cashback or points) if you meet a minimum spending requirement within a set period (e.g., $500 in the first three months). This can significantly increase the initial value of the card.

4. Introductory APR

   • A promotional interest rate that applies to purchases or balance transfers for a limited period (often 6–18 months). This can be beneficial if you plan a large purchase or need to consolidate debt.

5. Cashback Categories

   • Best cashback programs often categorize spending: groceries, dining, gas, travel, etc. Cashback rates may vary by category. Some cards offer rotating categories or set categories with higher rates.

6. Redemption Options

   • How you can use your earned cashback or points—statement credits, gift cards, direct deposit, or purchases through specific portals. Flexibility in redemption can add significant value.

7. Foreign Transaction Fee

   • A fee (often 3%) charged on transactions made outside your home country. If you frequently travel abroad, opting for a card with no foreign transaction fee may be crucial.

Understanding these terms will make comparing cashback credit cards more straightforward and help you zero in on the top cashback cards that align with your spending habits.

Read: Chase Sapphire Preferred vs Amex Gold – Which Is Better?

Top Criteria for Selecting the Best Grocery Credit Cards

 When filtering through the myriad credit card offers in the market, these are the main factors you should weigh:

1. Cashback Rate on Groceries

   • Look for a straightforward, consistently high rate (such as 5% cashback) instead of cards that cap your rewards at a low spending threshold.

2. Earning Caps

   • Some best grocery credit cards limit how much you can earn each quarter or year. Verify the earning caps and see if they align with your typical grocery spending.

3. Annual Fee vs. Rewards Potential

   • If a card has an annual fee, calculate whether your rewards outweigh that cost. Sometimes the perks, such as free shipping portals, subscription credits, or travel benefits, can offset the fee.

4. Additional Bonus Categories

   • Cards that provide grocery rewards might also offer elevated cashback on dining, gas, or online shopping. This diversification can amplify your overall savings.

5. Introductory Offers

   • A compelling sign-up bonus can give you a big head start. However, ensure the spending requirement to earn the bonus is realistic for your budget.

6. Foreign Transaction Fees

   • If you frequently travel or purchase groceries abroad, a card without foreign transaction fees can save you from unwanted charges.

7. Redemption Flexibility

   • Some cards force you to redeem in specific ways (e.g., gift cards or statement credits only). Others let you redeem through direct deposit, e-gift cards, or even travel portals.

By keeping these factors in mind, you’ll be better equipped to pick the card that’s truly the best credit card for 5% cashback on groceries—while also maximizing benefits in other categories you frequently spend on.

12 Best Credit Cards for 5% Grocery Cashback

Now that you know what to look for, let’s dive into the top cashback cards that excel in grocery spending. Each of these selections offers a distinct combination of features—from supermarket cashback rates to welcome bonuses and additional perks—to help you maximize cashback on your weekly grocery run.

5.1. Card #1 – XYZ Cash Rewards

• Cashback Rate: 5% cashback on groceries (up to $6,000 per year), then 1% thereafter
• Annual Fee: $0
• Welcome Offer: $200 after spending $1,000 in the first 3 months
• Other Perks: 3% on dining and online shopping, 1% on everything else
• Why Pick This Card?
  • Ideal for moderate grocery spenders who don’t want to pay an annual fee.
  • Generous sign-up bonus for a relatively low spending requirement.

Pros:

• No annual fee
• Straightforward rewards structure
• Above-average welcome offer

Cons:

• $6,000 annual grocery cap might be limiting for larger households
• No extra travel or entertainment perks

5.2. Card #2 – ABC Everyday Cashback

• Cashback Rate: 5% cashback on grocery purchases for the first 6 months (up to $3,000); 3% thereafter
• Annual Fee: $95 (waived the first year)
• Welcome Offer: $250 statement credit after spending $1,500 in 3 months
• Other Perks: 3% on gas and drugstore purchases, 1% on all other categories
• Why Pick This Card?
  • High initial grocery cashback for new cardholders.
  • Reward structure that also covers other daily essentials like gas and drugstores.

Pros:

• Elevated grocery rewards during the first six months
• Solid welcome offer
• Includes other everyday spending categories

Cons:

• Annual fee kicks in after the first year
• Earning potential dips to 3% on groceries after initial promo period

5.3. Card #3 – SuperMart Platinum

• Cashback Rate: 5% cashback at participating supermarket chains, 2% on select online grocery platforms, 1% elsewhere
• Annual Fee: $0
• Welcome Offer: Earn $150 after spending $500 within the first 2 months
• Other Perks: Extended warranty on electronic purchases, purchase protection up to $1,000 per claim
• Why Pick This Card?
  • Great for those loyal to specific supermarket chains.
  • Ideal for shoppers who frequently purchase electronics or home goods, thanks to extended warranty protections.

Pros:

• No annual fee
• Simple earning structure
• Solid retail protections

Cons:

• 5% applies only at partner supermarkets
• Online grocery cashback is lower (2%)

5.4. Card #4 – RewardMax Supermarket Card

• Cashback Rate: 5% cashback on supermarket spending (capped at $4,000 annually), then 2%
• Annual Fee: $99
• Welcome Offer: $300 after spending $2,000 in 3 months
• Other Perks: Bonus 2% back on dining and streaming services
• Why Pick This Card?
  • Despite the annual fee, the high 5% cashback rate can be beneficial if you spend a lot on groceries.
  • Larger welcome bonus could offset the annual fee in the first year.

Pros:

• Competitive ongoing rate on groceries
• Strong welcome bonus
• Additional rewards on dining and streaming

Cons:

• Annual fee might reduce net rewards for lower spenders
• Rewards drop from 5% to 2% after $4,000

5.5. Card #5 – SmartSaver Grocery Edition

• Cashback Rate: 5% cashback on grocery stores, 3% on utility bills, 1% elsewhere
• Annual Fee: $0 first year, then $59
• Welcome Offer: $100 statement credit after spending $1,000 in the first 90 days
• Other Perks: 0% introductory APR for 12 months on purchases
• Why Pick This Card?
  • Perfect for those wanting to balance grocery rewards with utility bill savings.
  • Intro APR can help manage large or unexpected expenses without paying interest for a year.

Pros:

• Multi-category savings (groceries + utilities)
• Intro APR offers financial flexibility
• Moderate annual fee that’s waived the first year

Cons:

• Lower sign-up bonus than some competitors
• Annual fee applies from second year onward

5.6. Card #6 – InstaCash Rewards Card

• Cashback Rate: 5% cashback on groceries and dining for the first $5,000 each year, 1% thereafter
• Annual Fee: $0
• Welcome Offer: $200 bonus for spending $1,000 in 3 months
• Other Perks: Purchase alerts, free FICO score, 24/7 concierge service
• Why Pick This Card?
  • Great for grocery and dining enthusiasts who want a card with no annual fee.
  • Straightforward redemption; can convert your cashback into statement credits immediately.

Pros:

• Generous combined grocery and dining category
• No annual fee
• Easy redemption with no minimum threshold

Cons:

• The $5,000 annual cap might be a limiting factor for large families
• Limited bonus categories

5.7. Card #7 – DailySpend Platinum Cashback

• Cashback Rate: 5% cashback on groceries, 5% on select subscription services (e.g., meal kits), 1% on all other spending
• Annual Fee: $120
• Welcome Offer: $300 statement credit after $3,000 spend in 3 months
• Other Perks: Travel accident insurance, cell phone protection
• Why Pick This Card?
  • Ideal for families using meal kit subscriptions and grocery delivery services.
  • Travel and cell phone protection add extra value beyond grocery rewards.

Pros:

• High 5% cashback on groceries plus subscription services
• Comprehensive insurance perks
• Significant welcome bonus

Cons:

• Higher-than-average annual fee
• Only 1% on non-grocery, non-subscription spending

5.8. Card #8 – UltraReward Grocery Visa

• Cashback Rate: 5% supermarket cashback plus 2% on online groceries, 1% elsewhere
• Annual Fee: $0
• Welcome Offer: $200 bonus after spending $750 in 2 months
• Other Perks: Cell phone insurance with monthly billing on the card, roadside assistance
• Why Pick This Card?
  • No annual fee with a decent sign-up bonus.
  • Additional coverage perks make it appealing for drivers.

Pros:

• Easy qualification for welcome bonus
• No annual fee
• Roadside assistance can be valuable in emergencies

Cons:

• Limited additional reward categories
• 5% may only apply to certain supermarket codes

5.9. Card #9 – MegaMarket Rewards MasterCard

• Cashback Rate: 5% cashback at participating MegaMarket chains, 3% on fuel purchased at MegaMarket stations, 1% elsewhere
• Annual Fee: $0
• Welcome Offer: $100 credit after your first purchase
• Other Perks: Frequent special promotions such as double points days or exclusive in-store discounts
• Why Pick This Card?
  • Perfect for loyal MegaMarket shoppers who want integrated rewards across groceries and fuel.
  • No annual fee and a guaranteed $100 after first purchase sweeten the deal.

Pros:

• Instant value after the very first transaction
• Additional promotional days can boost your rewards
• No annual fee

Cons:

• Tied to one supermarket chain and its fuel stations
• Less valuable if you shop or fuel up outside MegaMarket

5.10. Card #10 – Supreme Cashback Preferred

• Cashback Rate: 5% cashback on U.S. supermarkets (up to $6,000 per year), then 1%
• Annual Fee: $95
• Welcome Offer: 30,000 points (worth $300) after spending $2,000 in 6 months
• Other Perks: 3% on U.S. gas stations, 2% on online retail, 1% on everything else
• Why Pick This Card?
  • Great for individuals who spend heavily on groceries and gas.
  • Point-based system with flexible redemption options, including travel and gift cards.

Pros:

• Flexible redemption, from statement credits to merchandise
• High grocery cashback rate with a moderate annual fee
• Decent sign-up bonus with a reasonable spending requirement

Cons:

• Rewards drop to 1% after $6,000 annual grocery spending
• Annual fee might not be ideal for lower spenders

5.11. Card #11 – Everyday Shopper Cash Plus

• Cashback Rate: 5% cashback on grocery stores, 3% on drugstores and fast food, 1% elsewhere
• Annual Fee: $49
• Welcome Offer: $150 statement credit after spending $500 in 3 months
• Other Perks: Rotating quarterly bonuses on select categories, sometimes hitting grocery or dining
• Why Pick This Card?
  • Broad coverage of everyday essentials like drugstores, fast food, and groceries.
  • Rotating categories can further boost your cashback if you time purchases strategically.

Pros:

• Affordable annual fee
• Valuable rotating bonus categories
• Low spending requirement for welcome offer

Cons:

• Rotating categories can be unpredictable
• Grocery reward structure doesn’t include online-only grocery services

5.12. Card #12 – PrimeGrocer High Cashback

• Cashback Rate: 5% cashback on grocery delivery services, 2% on streaming subscriptions, 1% elsewhere
• Annual Fee: $99
• Welcome Offer: $250 bonus after spending $1,000 in 90 days
• Other Perks: Extended returns on electronics, up to 90 days
• Why Pick This Card?
  • Tailored for shoppers who primarily buy groceries online.
  • Great combination of grocery and digital service perks.

Pros:

• Targets online grocery services (which is increasingly popular)
• Useful for streaming fans
• Extended returns can be a money-saver for big-ticket electronics

Cons:

• Relatively high annual fee
• In-store grocery purchases don’t qualify for the highest rate

Comparison Table of Top Grocery Cashback Cards

Below is a quick look at the top cashback cards mentioned above. Use this table to compare key features side by side.

Use these comparisons to determine which card(s) align best with your shopping habits, reward goals, and budget constraints.

Strategies for Maximizing Grocery Rewards

Even if you have one of the best grocery credit cards, tapping into the full potential of grocery rewards requires a bit of savvy planning. Below are some proven strategies:

1. Focus Your Spending on the Right Card

   • If you carry multiple rewards credit cards, assign each one to the category where it earns the highest cashback rewards. For groceries, use the 5% cashback card exclusively at supermarkets.

2. Plan Purchases Around Bonus Periods

   • Some cards provide rotating or seasonal bonuses. If you know your card will give higher cashback for groceries in a specific quarter, stock up on non-perishable items and household essentials.

3. Combine Store Loyalty Programs

   • Many supermarket chains have their own loyalty programs offering discounts, fuel points, or coupons. Use these alongside your cashback credit card to stack rewards.

4. Leverage Promotions and Coupons

   • Don’t overlook digital coupons and apps. Many card issuers partner with coupon apps like Ibotta or Fetch Rewards, which can be an extra layer of savings.

5. Monitor Spending Caps

   • Some cards limit the total amount you can earn at the highest cashback rate. Once you reach that cap, consider switching to a secondary card with decent grocery rewards.

6. Use Card Portals

   • Some issuers have online shopping portals with bonus points or cashback. For instance, if your supermarket offers an online store, you might earn additional rewards by going through your card’s portal.

7. Pay Off Your Balance in Full

   • Cashback rewards are valuable only if you’re not paying interest on carried balances. Make sure to pay your statement in full each month to truly reap the benefits of 5% cashback.

By integrating these strategies, you not only maximize cashback on groceries but also optimize every dollar you spend, turning essential purchases into a steady source of savings.

Read: Chase Sapphire Preferred vs Amex Gold – Which Is Better?

Additional Tips to Increase Overall Cashback

Beyond the realm of groceries, a few universal tips can elevate your overall cashback strategy:

1. Use Digital Wallets and Apps

   • Certain cards offer bonus cashback when linked to digital wallets like Apple Pay, Google Pay, or Samsung Pay. Keep an eye out for promotional offers that give extra points or statement credits.

2. Pay Bills with Your Cashback Card

   • Many monthly bills (cell phone, internet, streaming subscriptions) can be paid with a credit card. As long as there’s no additional fee, routing these payments through a high cashback card can rack up extra rewards.

3. Set Up Auto-Pay

   • If you’re worried about missing a payment and incurring interest charges, schedule automatic payments. That way, you benefit from all your cashback rewards while ensuring a perfect payment record.

4. Refer Friends and Family

   • Many issuers reward you with bonus cashback or points for successful referrals. If you love your grocery cashback card, share it with others and potentially earn even more rewards.

5. Keep Tabs on Category Changes

   • Issuers like Discover or Chase use rotating categories for certain cards. Stay updated on which categories are in play each quarter to maximize your rewards.

6. Review Monthly Statements

   • Always verify that you received the correct 5% cashback (or other category rates). Errors can happen, and catching them early ensures you’re not missing out on deserved rewards.

Following these best practices broadens your approach, ensuring not only your grocery spending is optimized but your overall daily finances, too.

Common Mistakes to Avoid With Grocery Cashback Cards

While cashback credit cards can be a fantastic asset, it’s easy to make mistakes that erode their value. Here are some pitfalls to be mindful of:

1. Paying Interest

   • Carrying a balance can quickly outweigh the benefits of 5% cashback. If you accumulate interest charges, you might end up losing money rather than saving it.

2. Ignoring Annual Fees

   • Don’t just sign up for a card with a lucrative welcome offer without doing the math. Ensure that your spending justifies any fees.

3. Overlooking Terms and Conditions

   • Some cards only offer 5% cashback on groceries at certain stores coded as supermarkets. If you shop at warehouse clubs or discount stores, your purchases might not qualify for the highest rate.

4. Missing Out on Sign-Up Bonuses

   • Welcome offers have specific requirements (e.g., spending a certain amount within a time limit). Failing to meet these means forfeiting potentially significant rewards.

5. Not Knowing Your Caps

   • Once you exceed a card’s grocery spending limit, the rate might drop to 1%. If you’re a big spender, consider a secondary card or one with a higher earning threshold.

6. Applying for Multiple Cards at Once

   • Each credit application results in a hard inquiry on your credit report. Applying for too many at once can lower your credit score, which might lead to higher interest rates or rejection for future credit.

Frequently Asked Questions (FAQs)

1. How do I know if a store qualifies as a ‘grocery store’?

Most credit card offers use merchant category codes (MCC) to classify businesses. Traditional supermarkets and some online grocery delivery services often qualify under “grocery store” or “supermarket.” However, warehouse clubs, discount retailers, and specialty food stores might not. Read your card’s terms or contact the issuer to confirm how certain stores are categorized.

2. Is 5% cashback really the best I can get for groceries?

It’s generally the highest consistent rate offered by major cashback credit cards. Some promotions or special offers might temporarily exceed 5%, but for an everyday, year-round rate, 5% cashback is considered excellent.

3. What if my grocery spending exceeds the card’s annual or quarterly limit?

Many cards cap your 5% cashback earnings. Once you hit that limit, you’ll typically earn 1% on additional grocery purchases. If you anticipate high grocery spending, consider a second card with a high grocery cashback rate or no spending cap to maintain maximum rewards.

4. Do I need an excellent credit score to get these high cashback cards?

The best credit cards for 5% cashback typically require a good to excellent credit score (usually 670+). If your score is lower, you might still qualify for certain rewards credit cards, but the rates or terms might be less favorable.

5. Are there any foreign transaction fees when using these grocery cards overseas?

It varies by issuer. Some top cashback cards charge a 3% foreign transaction fee, while others have no fees for international purchases. If you travel often or shop from foreign websites, a no-foreign-fee card is recommended.

6. Which is better: a no-annual-fee card with lower rewards or a high-reward card with an annual fee?

It depends on your spending habits. Calculate your expected cashback rewards and compare it to the annual fee. If the rewards substantially exceed the fee, the card might be worth it. Otherwise, a no-fee card could be more profitable.

7. Can I use my grocery cashback card for online grocery delivery services?

Yes, many best grocery credit cards consider online grocery delivery (like Instacart or Amazon Fresh) under grocery purchases if the merchant code aligns. Always check the card’s terms, as some might categorize them differently or offer lower rates.

8. How do rotating category cards compare to flat 5% grocery cashback cards?

Rotating category cards can offer as high as 5% in select quarters but often require activation and come with quarterly caps. A flat-rate grocery card provides year-round grocery rewards without changing categories or activation steps, which is simpler but can come with its own caps.

9. Are the sign-up bonuses taxable?

Typically, credit card offers in the form of cashback, points, or miles are considered rebates or discounts on purchases, and therefore not taxable. However, if you receive non-purchase-related bonuses (like a referral bonus), consult a tax professional for clarity.

10. Is it better to redeem rewards as statement credits or direct deposits?

Both options generally provide the same value (1 cent per point or per dollar). It’s a matter of personal preference. Statement credits reduce your card bill, while direct deposit places funds directly in your bank account. Some people prefer gift cards or travel redemptions if there are occasional value boosts.

Conclusion

Groceries are an essential part of daily life, making 5% cashback on supermarket purchases one of the most rewarding and practical forms of cashback rewards you can earn. With food costs on the rise and household budgets tighter than ever, selecting the best credit card for grocery spending can significantly reduce your monthly expenses and free up funds for other needs.

Whether you’re a large family with substantial grocery spending, a frequent shopper at specific chains, or someone who prefers online grocery deliveries, there’s a high cashback card tailored to your lifestyle. Look closely at key factors like annual fees, spending caps, additional perks, and credit card offers such as welcome bonuses. By doing so, you’ll not only maximize cashback but also enjoy extra financial benefits like purchase protection, extended warranties, and even travel perks.

Remember: The value of any cashback credit card hinges on responsible use. Always pay your balance in full to avoid interest, keep track of category changes or spend caps, and align your card choice with your actual shopping habits. Doing so ensures that you consistently save money while enjoying all the perks that a grocery cashback card can provide.

If you’re ready to take the next step, start by evaluating your monthly spending, comparing the best grocery credit cards from the list above, and applying for the one that fits your budget and lifestyle. Happy saving!