The Best Credit Card for Grocery Cashback in 2024

If you’re someone who spends a good portion of your budget at supermarkets, you need a credit card that rewards you for it.

The American Express Blue Cash Preferred® Card stands out as one of the best choices, offering exceptional cashback rates on groceries and several other everyday spending categories.

This card is specifically designed for families, foodies, and anyone who frequently shops at U.S. supermarkets.

With up to 6% cashback on grocery purchases (up to $6,000 per year, then 1%), the Blue Cash Preferred® can put serious money back in your pocket.

It also offers cashback on streaming services, gas stations, and transit, making it a well-rounded option for those who want a rewarding credit card for their daily expenses.

But is it the best option for you? Let’s dive deep into what makes the Blue Cash Preferred® Card the ultimate grocery card and explore how you can maximize its benefits.

Key Features of the Blue Cash Preferred® Card

» High Cashback on Groceries

The biggest reason to choose this card is the 6% cashback at U.S. supermarkets, capped at $6,000 per year (after that, it drops to 1%).

That means you can earn up to $360 annually just from grocery spending alone.

» Additional Cashback Categories

Besides groceries, the card also rewards other common spending areas:

• 6% cashback on select U.S. streaming services (Netflix, Disney+, Hulu, etc.)
• 3% cashback at U.S. gas stations and transit (including taxis, rideshares, and public transportation)
• 1% cashback on all other purchases

» Welcome Offer

New cardholders can take advantage of a substantial welcome bonus, often in the form of a statement credit after meeting the minimum spending requirement within the first few months.

» Annual Fee

There’s a $95 annual fee ($0 for the first year), but for most users, the cashback earnings far outweigh the cost.

Why This Card is the Best for Grocery Shopping

There are many cashback credit cards on the market, but very few offer 6% back on groceries. That’s why the Blue Cash Preferred® is a top choice for anyone who frequently shops at U.S. supermarkets.

» Comparing with Other Cashback Cards

• Chase Freedom Flex® offers rotating 5% categories, but they change quarterly and don’t always include groceries.
• Citi Custom Cash® Card gives 5% in one chosen category, but the limit is just $500 per month.
• Blue Cash Everyday® (from American Express) offers 3% cashback on groceries, which is decent but not as strong as 6%.

» Best for Families and Bulk Shoppers

If you spend around $500 per month on groceries, you’ll hit the $6,000 limit, earning $360 per year in cashback—far exceeding the cost of the annual fee.

Earning Rewards with the Blue Cash Preferred® Card

» Maximizing Cashback

• Use this card only for groceries and its bonus categories to ensure you’re getting the best value.
• Keep track of the $6,000 grocery spending cap so you can switch to another card if you exceed it.
• If you combine this card with another no-annual-fee cashback card, you can extend your grocery rewards beyond the cap.\

Additional Perks and Benefits

Aside from its impressive cashback rates, the Blue Cash Preferred® Card offers a variety of other perks that make it even more appealing.

These additional benefits can help cardholders save money on everyday expenses beyond just groceries.

» Cashback on Streaming Services

One standout feature of this card is the 6% cashback on select U.S.

streaming services. If you’re subscribed to platforms like Netflix, Disney+, Spotify, Apple Music, or Hulu, this benefit alone can add up to significant savings over time.

For example, if you spend $20 per month on streaming services, that’s:

• $240 per year
• $14.40 cashback annually

This might not seem like a massive amount, but when combined with the grocery cashback, it contributes to offsetting the annual fee.

» Gas Station and Transit Rewards

The 3% cashback at U.S. gas stations makes this card a strong choice for commuters and road-trippers. If you spend $200 per month on gas, you’ll earn:

• $6 per month
• $72 per year

Additionally, transit purchases—such as rideshares, taxis, buses, tolls, and parking—also qualify for 3% cashback, which is great for people who rely on public transportation or drive frequently.

» Purchase Protection and Extended Warranty

American Express offers purchase protection on eligible items bought with the card, covering damage or theft for up to 90 days.

Plus, the extended warranty benefit adds an extra year to manufacturers’ warranties of 5 years or less, which can be useful for electronics and appliances.

Understanding the Annual Fee

The $95 annual fee might deter some people, but for those who maximize the card’s benefits, it easily pays for itself.

Here’s a simple breakdown to determine if the fee is worth it:

» When the Fee is Justified

If you spend at least $3,000 per year ($250 per month) on groceries, you’re already earning $180 in cashback, which nearly doubles the annual fee.

Add in the streaming and gas benefits, and you’re looking at $500+ in total rewards annually.

» Who Might Not Benefit?

• Those who spend less than $250/month on groceries
• People who prefer wholesale clubs like Costco or Sam’s Club, as those are not considered supermarkets
• Anyone who doesn’t use streaming services or drive often

In those cases, a no-annual-fee card like the Blue Cash Everyday® might be a better fit.

Source: Pixabay

Conclusion

The American Express Blue Cash Preferred® Card is easily one of the best cashback cards for grocery shoppers.

With 6% back at supermarkets, 6% back on streaming, and 3% back on gas and transit, this card helps you save money on essential purchases.

While the $95 annual fee might seem like a downside, most users easily earn enough cashback to justify the cost. If you’re spending at least $250 per month on groceries, this card is a no-brainer.

So, if you want to maximize your grocery rewards and daily spending, the Blue Cash Preferred® is a top contender. Apply today and start earning cashback on your everyday purchases!

FAQs

1. Does the Blue Cash Preferred® Card work for all grocery stores?
   No, the 6% cashback on groceries applies only to purchases made at U.S. supermarkets such as Kroger, Safeway, Publix, Whole Foods, and Trader Joe’s.
2. Can I use this card for meal delivery services?
   No, purchases made through Uber Eats, DoorDash, Grubhub, or other meal delivery apps do not qualify for 6% grocery cashback. However, you will earn 1% cashback on these transactions.
3. How does cashback get credited to my account?
   Cashback earned with the Blue Cash Preferred® Card is automatically applied as a statement credit, meaning it will reduce your outstanding balance on the card. Unlike some other rewards programs, you cannot transfer the cashback to your bank account or redeem it for travel rewards.
4. What happens if I cancel my card before using the rewards?
   If you cancel your card before redeeming your cashback, you will lose any unused rewards. Always ensure you redeem your earned cashback before closing your account to avoid losing potential savings.
5. Is there a way to waive the annual fee?
   Unfortunately, there is no way to waive the annual fee permanently. However, the first year’s annual fee is waived, allowing you to try the card risk-free before committing to the $95 fee in the second year. Some people also call American Express to request a retention offer, which occasionally results in a statement credit to offset the annual fee.