For credit card rewards, a grocery store is usually a merchant coded as a supermarket (merchant category code 5411), such as Kroger, Safeway, Publix, Aldi, Trader Joe’s or Whole Foods. Superstores like Walmart and Target, warehouse clubs like Costco, and convenience stores usually don’t count, even though they sell plenty of food. Issuers often exclude those big names explicitly, whatever code the store sends.
The exact rules depend on your card, and the fine print differs more than people expect.
How do card issuers decide what’s a grocery store? #
Every merchant has a four-digit merchant category code. Your issuer sees that code, not your receipt. If the code is on the issuer’s grocery list and the merchant isn’t on its exclusion list, you get the grocery rate.
Two consequences:
- The items don’t matter. Milk bought at a gas station earns the gas or convenience rate. A gift card bought at a supermarket earns the grocery rate.
- Store names can override codes. Many cards exclude “superstores” or name Walmart and Target directly, so those purchases earn the base rate even when they code as grocery.
How to find a merchant category code shows how to check a specific store.
Which stores count as grocery stores? #
| Store type | Examples | Usually counts? |
|---|---|---|
| Traditional supermarkets | Kroger, Safeway, Albertsons, Publix, H-E-B | Yes |
| Discount grocers | Aldi, Lidl, WinCo | Yes |
| Specialty and organic grocers | Whole Foods, Trader Joe’s, Sprouts | Yes |
| Independent grocers and co-ops | Local markets | Usually, if coded as a supermarket |
| Superstores | Walmart, Target | Usually no |
| Warehouse clubs | Costco, Sam’s Club, BJ’s | Usually no, unless the card names them |
| Convenience stores | 7-Eleven, gas station shops | No |
| Bakeries, butchers, liquor stores | Specialty food shops | Often no |
How do different credit cards define groceries? #
Terms checked on issuer sites in September 2026:
| Card | Grocery rewards | Key exclusions |
|---|---|---|
| Amex Gold | 4x at U.S. supermarkets, up to $25,000 a year | U.S. only; superstores and warehouse clubs don’t count as supermarkets |
| Capital One Savor | 3% at grocery stores | Superstores like Walmart and Target |
| Chase Sapphire Preferred | 3x on online grocery purchases | Chase lists exclusions; in-store purchases earn 1x |
| U.S. Bank Altitude Go | 2x at grocery stores | Discount stores and supercenters, wholesale clubs |
| U.S. Bank Cash+ (if you choose groceries for 2%) | 2% at grocery stores | Discount stores and supercenters, wholesale clubs |
Sources: Amex Gold, Capital One Savor, Chase Sapphire Preferred, U.S. Bank Altitude Go, U.S. Bank Cash+.
Cards with “U.S.” in the category name earn the base rate on groceries abroad. If you shop for groceries on a trip, use a travel card with no foreign transaction fee instead.
What about Costco, Walmart and Target? #
Costco codes as a warehouse club and accepts only Visa credit cards in its warehouses, so most grocery cards fail twice there. A few cards count wholesale clubs, such as the Venmo Credit Card when grocery is your top category and Bank of America Customized Cash Rewards. Our best credit card to use at Costco guide compares them.
Walmart and Target are excluded from most grocery categories. Some cards and store programs reward those stores directly, which we compare in the best credit cards for Walmart and Target.
Does grocery delivery count as groceries? #
Delivery services often code as grocery, but not always, and a card’s terms can treat them differently from in-store shopping. The Sapphire Preferred works the other way around: its 3x category is online grocery, and in-store shopping earns 1x. When you try a new service, place a small first order and check the rewards line before moving your whole grocery budget.
How to earn the grocery rate every time #
The simplest system: one card for supermarkets, a flat-rate Visa for Costco and superstores, and a note of the exceptions. Credit Card Central has a Which Card? screen that ranks the cards you own for groceries, dining, gas, travel and streaming. Its rankings come from the rates you entered, so add each card’s exclusions to its notes (“Gold: not Walmart, Target or Costco”) and they’re one search away while you’re in line.
Buying supermarket gift cards for other stores can also help you hit a sign-up bonus or a grocery quarter. Read can you buy gift cards to meet minimum spend before you try it.
Frequently asked questions #
Does Walmart count as a grocery store for credit cards? #
Usually not. Most issuers exclude Walmart from their grocery category by name or as a superstore, even for grocery purchases in a Supercenter.
Does Target count as a grocery store? #
Usually not, for the same reason: issuers treat it as a superstore or discount store, including locations with full grocery sections.
Does Costco count as a grocery store? #
No, on most cards. Costco codes as a warehouse club, and only cards that name wholesale clubs, or define grocery broadly enough to include them, pay a bonus there.
Does Whole Foods count as a grocery store? #
Yes. In-store Whole Foods purchases generally code as a supermarket and earn grocery rewards on most cards.
How can I check how a store codes? #
Make a small purchase and look at the transaction in your card’s app. The category label and the rewards earned show whether it counted as groceries.