What Does Amex Consider a Supermarket?

Maximizing credit card rewards, especially for groceries, is a common goal for many consumers. American Express offers various cards with bonus categories for supermarket purchases, but their definition of a “supermarket” may not always align with a consumer’s general understanding. Cardholders should understand how Amex categorizes merchants to ensure they earn the intended bonus points or cash back and make informed spending decisions.

Understanding Amex’s Supermarket Definition

American Express defines a “supermarket” as a traditional grocery store offering a wide variety of food, beverages, and household products. This includes items such as meat, fresh produce, dairy, canned goods, packaged foods, household cleaners, and pharmacy products. Classification primarily depends on the merchant’s core business activity. Merchants whose primary revenue stream comes from selling these diverse grocery items are generally eligible for the bonus category.

However, certain types of retailers, even if they sell groceries, are frequently excluded from Amex’s supermarket category for bonus rewards. This includes superstores or warehouse clubs, such as Walmart Supercenter, Target, Costco, and Sam’s Club. Specialty food stores like bakeries, butcher shops, seafood markets, or gourmet food shops are usually not considered supermarkets. Drugstores, convenience stores, gas stations, meal-kit delivery services, and restaurants are also generally excluded from this bonus category.

Common Stores and Their Amex Classification

Popular retail chains are generally categorized as supermarkets by American Express, allowing cardholders to earn bonus rewards on eligible purchases. These commonly include traditional grocery stores such as Kroger, Safeway, Publix, Whole Foods, Trader Joe’s, Albertsons, and Wegmans. Stores like ALDI, Meijer, ShopRite, and Winn-Dixie also qualify as U.S. supermarkets for Amex bonus categories. Online supermarkets such as FreshDirect are often included as well.

Conversely, many large retailers that sell groceries are generally not classified as supermarkets by Amex for bonus rewards. This includes major superstores like Walmart and Target, and warehouse clubs such as Costco and Sam’s Club. Purchases at drugstores like CVS and Walgreens, or convenience stores like 7-Eleven and gas station marts, also typically do not earn supermarket bonus rewards. These classifications are general guidelines, and individual store classifications can sometimes vary based on the specific location or how the merchant is set up with their payment processor.

How Merchant Categories Are Assigned

The classification of merchants for credit card transactions, including those by American Express, relies on Merchant Category Codes (MCCs). An MCC is a four-digit code that payment networks use to classify businesses based on their primary goods or services. When a business sets up its merchant account with a payment processor, the processor assigns an MCC that reflects its main activity.

This MCC is transmitted with each transaction, allowing American Express to determine if a purchase qualifies for bonus rewards in specific categories like “supermarket.” While MCCs are generally reliable, miscategorizations can occur, or a merchant’s primary business model might evolve. If there is uncertainty about a specific purchase, cardholders can check their Amex statement or online transaction details, as MCCs may be listed with transaction information.