Is Walmart Considered a Grocery Store for Credit Cards? The Surprising Truth

Do you shop for groceries at Walmart to take advantage of their low prices? If so, you may be wondering if your credit card rewards bonus for grocery stores also applies to Walmart. Unfortunately, major credit card issuers do not classify Walmart as a grocery store merchant.

This means you can‘t earn additional bonus cash back or points when you buy groceries at regular Walmart supercenters. However, there are still ways to maximize your credit card rewards for Walmart grocery hauls, which I‘ll explain step-by-step in this guide.

Why Do Customers Think Walmart is a Grocery Store?

It‘s easy to assume Walmart would be coded as a grocery merchant, since grocery sales account for a huge chunk of their business:

• 56% of Walmart‘s revenue comes from grocery items, according to Walmart‘s 2021 annual report. That‘s over half their sales!

• Walmart is the largest grocer in the United States when looking at total market share.

• The average Walmart supercenter dedicates over 50% of floor space to groceries, household essentials, and consumables.

• 90% of Americans live within 10 miles of a Walmart store that sells groceries, providing convenient access.

So Walmart clearly focuses heavily on grocery and is a popular place for food shopping. But despite this, your credit card rewards don‘t treat it the same as dedicated grocery stores.

Why Credit Cards Don‘t Code Walmart as a Grocery Store

Credit card networks like Visa, Mastercard, American Express, and Discover classify merchants using what‘s called a "merchant category code" (MCC). This MCC determines what kind of bonus rewards you can earn for purchases at that retailer.

The MCC assigned to Walmart by card networks is:

• Discount stores
• General merchandise
• Warehouse clubs and superstores

Not supermarkets or grocery stores.

That‘s why you can‘t earn your credit card‘s full grocery bonus rewards rate on Walmart purchases. Even though groceries make up over half of their sales, Walmart sells far more than just food and household essentials.

You can also buy clothing, auto accessories, garden supplies, electronics, home goods, toys, pet supplies, and more at Walmart supercenters. This diversity of inventory is why Walmart gets classified as a general retail store, rather than solely a grocery store.

Do Any Credit Cards Count Walmart as a Grocery Store?

Now that you know why most credit cards don‘t code Walmart as a grocery store, are there any exceptions?

There are actually a couple niche cards that do classify Walmart as a grocery merchant:

• Capital One Walmart Rewards Card – You earn 2% back on Walmart purchases, including groceries.

• Synchrony Walmart Credit Card – This gets you 5% back on Walmart purchases in-store and online.

But these are store-specific cards meant for Walmart shopping. Most general rewards credit cards issued by banks do not count Walmart grocery purchases for bonus rewards.

Next let‘s take a closer look at policies for major issuers.

American Express Grocery Rewards at Walmart

Do any American Express cards earn bonus rewards at Walmart for groceries? Here are the details:

• American Express Blue Cash Preferred® Card – 6% back at U.S. supermarkets on up to $6,000 per year in purchases (then 1% back). Walmart is not coded as a supermarket.

• American Express Gold Card – 4x points at U.S. supermarkets on up to $25,000 per year in purchases (then 1x). Again, regular Walmart locations do not qualify.

• American Express EveryDay® Credit Card – 2x points at U.S. supermarkets on up to $6,000 per year in purchases (then 1x). No bonus points for Walmart groceries.

The only exception is if you shop at Walmart Neighborhood Market. Those smaller Walmart grocery stores do code as supermarkets for American Express cards.

So if you have an Amex card with grocery bonuses, you‘ll need to shop elsewhere to maximize rewards.

Chase Credit Cards With Grocery Bonuses

Here are the details on popular Chase cards:

• Chase Freedom FlexSM– 5% cash back on up to $12,000 spent at grocery stores annually on quarterly rotating categories. Walmart is excluded.

• Chase Freedom Unlimited® – 3% cash back at drugstores and dining. Groceries are only 1.5% back and Walmart does not qualify.

• Chase Sapphire Preferred® Card – 2x points on dining and travel. No grocery bonus category.

• Chase Sapphire Reserve® – 3x points on dining and travel. Groceries earn just 1 point per dollar.

The only exception is Walmart Neighborhood Market, which does trigger the bonus for Chase grocery purchases.

So again, no extra rewards for Walmart groceries from Chase.

Discover Cashback Bonuses at Walmart

Discover has a popular 5% cashback quarterly bonus category that rotates each quarter. Unfortunately, regular Walmart grocery purchases never qualify for the 5% bonus category.

However, sometimes Walmart.com will qualify if online purchases are the bonus for that quarter. This means Walmart Grocery Pickup & Delivery would earn 5% back during those quarters.

Additionally, Walmart Neighborhood Markets code as grocery stores with Discover. But in-store supermarket purchases only qualify occasionally when it’s the activated quarterly category.

For most quarters, Walmart groceries will earn just 1% back with Discover.

Bank of America Rewards Rates at Walmart

Bank of America also follows the standard model of coding Walmart outside the grocery category:

• Bank of America Customized Cash Rewards – 2% back at grocery stores, but Walmart supercenters are excluded.

• Bank of America Travel Rewards® – 1.5 points per dollar on all purchases. No grocery bonus.

The exception is Walmart Neighborhood Market, which does trigger the 2% grocery cash back rewards.

Walmart Grocery Purchases with Citi Credit Cards

Citi cards also do not recognize regular Walmart locations as grocery stores:

• Citi Custom CashSM Card – 5% cash back on up to $500 spent in your top eligible spend category each billing cycle, which includes grocery stores. Walmart doesn‘t qualify.

• Citi Premier® Card – 3x points on dining, supermarkets, gas stations, air travel, and hotels. No bonus for Walmart groceries.

• Citi Double Cash – 2% back on all purchases with 1% when you buy and 1% as you pay. No category bonuses.

The only exception is Walmart Neighborhood Markets, which does trigger Citi‘s grocery bonuses.

So across all major credit card issuers, regular Walmart stores are not coded as grocery merchants. But there are still ways to earn rewards on groceries when shopping at Walmart, which we’ll discuss next.

How to Maximize Credit Card Rewards at Walmart

Since most top rewards cards exclude Walmart from grocery bonus categories, how can savvy shoppers still earn bonuses on food purchases there? Here are five smart tips:

1. Shop at Walmart Neighborhood Market

As we’ve seen, Walmart Neighborhood Market locations are coded differently than the superstores. All major credit cards classify these smaller format stores as grocery merchants.

So be sure to do your food shopping at Neighborhood Market stores if you want to earn the highest grocery rewards rates and maximize bonuses.

2. Check for Walmart promos on cashback portals

Popular cashback sites like Rakuten often run boosted promo offers for Walmart purchases. You can earn up to 5% cashback when you activate these bonuses and shop through the portal.

This extra cashback is on top of any credit card rewards you already earn. Just link your card, enable the promo, and shop through the website.

3. Consider rotating quarterly category cards

Credit cards like Chase Freedom Flex and Discover It earn bonus cashback on quarterly rotating categories. When Walmart itself is a category, your purchases will qualify.

This happens occasionally with Walmart.com purchases rather than in-store. But it’s an easy way to earn 5% back on grocery pickup or delivery orders from Walmart during those quarters.

4. Use a Walmart credit card

As mentioned earlier, the only credit cards that do code Walmart as a grocery store are the store-specific ones.

The Capital One Walmart Rewards Card earns 2% back on Walmart purchases, including groceries. And the Walmart Credit Card gets you 5% back in-store and online.

So if you frequently buy groceries at Walmart, using one of their cards is the best way to maximize rewards.

5. Shop at stores that qualify for grocery bonuses

Rather than trying to make Walmart purchases count as groceries, another option is leaning into true grocery merchants that do trigger your credit card’s bonus rewards.

Many supermarket chains code as grocery stores across all major card issuers, like:

• Kroger and affiliates (Ralphs, Fred Meyer, Fry’s)
• Albertsons and affiliates (Safeway, Vons)
• Publix
• H-E-B
• Whole Foods
• Trader Joe‘s
• Aldi
• Costco

Focusing your grocery spend at stores you know qualify for bonuses will ensure you earn the highest rates from your credit card rewards.

The Bottom Line: Maximize Rewards for Walmart Groceries

While most popular credit cards don’t classify Walmart as a grocery merchant, you have many options to earn rewards when you shop for food:

• Visit Walmart Neighborhood Markets which do code as groceries
• Check cashback portals for Walmart promos
• Consider rotating category cards when Walmart is a bonus
• Use a Capital One or Synchrony Walmart credit card
• Shop at other grocery stores that qualify for bonuses

Hopefully this guide gave you clarity around why Walmart doesn‘t trigger grocery rewards for major credit card issuers. But with the right strategy, you can still maximize your earnings when buying groceries at Walmart using your favorite rewards credit card.