What Is Considered a Grocery Store for Credit Cards?

Understanding how credit card companies classify merchants helps consumers maximize rewards. Not all establishments selling food items are categorized identically. A purchase at one location might earn bonus points or cashback, while a similar purchase elsewhere may not. This distinction is important because many cards offer enhanced rewards for grocery store spending.

Understanding Merchant Category Codes

Credit card networks like Visa, Mastercard, American Express, and Discover use four-digit Merchant Category Codes (MCCs) to classify businesses. These codes identify a merchant’s primary goods or services, allowing credit card issuers to categorize transactions and apply bonus rewards. A merchant’s main business activity dictates its assigned MCC. For example, a store primarily selling food for home consumption will likely receive a grocery store MCC, with 5411 being the most common. While MCCs are standardized, individual credit card issuers may have specific definitions or exclusions within their rewards programs.

Stores That Typically Qualify

Traditional supermarkets and smaller neighborhood grocery stores generally qualify for credit card bonus rewards on grocery purchases, typically assigned MCC 5411. Specialty food stores, such as butcher shops, bakeries, dairy product stores, and meat provisioners, can also qualify if their primary business aligns with food sales. Examples include MCC 5422 for meat provisioners or 5462 for bakeries.

Online grocery delivery services frequently qualify for grocery bonuses, especially when the underlying merchant is a recognized grocery store. Purchases made directly from a grocery store’s online platform for pickup or delivery often earn rewards. This applies even if a third-party delivery service is used, provided the originating merchant code is for a grocery store.

Stores That Typically Do Not Qualify

Many superstores, such as Walmart and Target, typically do not qualify for credit card grocery bonuses, even though they sell a significant amount of food. Their primary Merchant Category Code is usually for general merchandise or discount stores, not specifically for groceries. Purchases made at these locations may only earn the base rewards rate, rather than an accelerated grocery category rate.

Convenience stores, including those attached to gas stations, and drugstores like CVS or Walgreens, generally do not qualify as grocery stores for credit card rewards. These merchants are assigned distinct MCCs reflecting their primary business, such as 5499 for miscellaneous food stores or convenience stores, and 5912 for pharmacies. Purchases of food items at these locations will likely not earn bonus grocery rewards.

Wholesale clubs, including Costco and Sam’s Club, also tend to have their own unique MCCs, such as 5300. Consequently, purchases at these stores typically do not earn bonus rewards under a general “grocery” category unless the specific credit card program explicitly includes wholesale clubs as a bonus category. Similarly, gas stations, restaurants, and fast food establishments have their own specific MCCs, preventing them from being classified as grocery stores for reward purposes.

Verifying a Store’s Category

Consumers can determine if a store qualifies for grocery rewards by checking their credit card issuer’s website or rewards program terms. These resources often list qualifying merchant types or specific exclusions.

While not always readily available to the public, some online tools provided by credit card networks, such as Visa’s search tools, can sometimes reveal a merchant’s MCC. However, the direct functionality of some older MCC lookup tools may have changed. Another practical approach is to make a small test purchase at the store and then review the transaction details on the credit card statement, where the merchant description may indicate its category.

If uncertainty persists, contact the credit card issuer’s customer service. They can confirm a merchant’s MCC or explain if a store qualifies under their program’s grocery store definition.