With high inflation impacting grocery prices in recent years, American consumers are looking for ways to save on their supermarket trips.
One way to reduce costs is by using a credit card that offers generous cash back when you stock up on groceries. Many general cash-back credit cards let you earn rewards at U.S. supermarkets, but some stores also have their own branded cards offering generous cash back, like Kroger.
If you’re a big Kroger fan, the Kroger Rewards World Elite Mastercard® might be worth considering. Here’s what to know about this card and its benefits.
Related: Best credit cards for groceries
The Kroger Rewards World Elite Mastercard is not a closed-loop card like many other store-branded credit card options. Instead, this credit card is part of the Mastercard payment network — a broad global network with thousands of merchants. You can use it for purchases at Kroger stores as well as anywhere Mastercard is accepted.
The Kroger Rewards World Elite Mastercard has impressive cash-back rewards for Kroger shoppers. As a cardmember, you can get:
5% back on up to $3,000 per year in Kroger Pay transactions, 2% back after that (excludes Kroger fuel purchases)
5% back on up to $3,000 per year in mobile wallet transactions, 1% back after that
2% back at Kroger stores (excludes Kroger fuel purchases)
1% back on everything else
You can sign up for Kroger Pay, the top rewards category, through the Kroger app. When you’re ready to pay in-store you can navigate to Kroger Pay through the app and get a QR code with your loyalty card and payment information to use at checkout.
So let’s say you earn 5% back on the maximum $3,000 in Kroger Pay transactions in a year, and you also make $3,000 worth of mobile wallet payments at 5% back. That’s a total of $300 in cash-back earnings for that particular year, not accounting for additional rewards you may earn from other spending.
Earnings caps apply for the Kroger Rewards World Elite Mastercard’s highest-tier rewards. While you can still earn ample 5% back, a more general cash-back credit card may have unlimited rewards or a higher earnings cap.
The Blue Cash Preferred® Card from American Express is one example that also earns great rewards at supermarkets. With this card, you can earn 6% back at U.S. supermarkets on up to $6,000 per year in purchases (1% after that); 6% back on select streaming services in the U.S.; 3% back on transit and U.S. gas station purchases; and 1% back on everything else. This card offers a $0 introductory annual fee the first year, and it’s $95 a year after that (see rates & fees).
So if you spend $6,000 at U.S. supermarkets with your Blue Cash Preferred Card in a given year — which is totally feasible given the average American family’s cost of groceries — that equals $360 in cash-back earnings. Add cash back from your other spending, including everyday costs like gas and streaming services, and you’re looking at some lucrative savings.
Read our full review of the Blue Cash Preferred from American Express.
It’s probably unsurprising that your redemption options are fairly limited with the Kroger Rewards World Elite Mastercard. It’s a card specifically for Kroger shoppers, after all.
When you earn rewards with your card, you can redeem them for a statement credit or Real-Time Rewards for a minimum $10 (1,000 rewards points) redemption. You can also redeem rewards for Kroger Family of Companies gift cards at a minimum $25 (2,500 rewards points) redemption.
Unfortunately, Kroger rewards expire after 36 months. Make sure to check your account regularly so you don’t let any rewards expire before you can redeem them.
You won’t pay an annual fee with the Kroger Rewards World Elite Mastercard, which is a big value-add. Some cash-back cards do have annual fees, which can make it more difficult to maximize your rewards over time. There’s no need to worry about that with this card.
Read more: Best credit cards with no annual fee
New Kroger Rewards World Elite Mastercard members can earn a fairly decent welcome offer: Earn a $100 statement credit after spending $500 within the first 90 days of account opening.
Given that you’ll likely be using your new card for grocery purchases at your favorite Kroger stores, this welcome offer will be fairly easy to earn.
To reach the $500 spending requirement, you’ll need to make about $167 in purchases each month over the first three months. That includes your regular grocery shopping at Kroger, as well as any other purchases you make, like mobile wallet transactions at any retailer that qualify for the 5% bonus category.
Besides decent rewards and a solid welcome offer, Kroger Rewards World Elite Mastercard members can also get a free Boost Essential Membership. The Kroger Boost program gives you perks like fuel rewards, select streaming benefits, exclusive discounts, and free grocery delivery.
There are two Boost membership tiers: Boost Essential and Boost. Boost Essential is normally $69 per year while Boost costs $99 per year. Once you’re approved for your card, you can enroll and activate your membership. Boost Essential membership is covered as a card benefit, but you can also opt for the $99 Boost Membership and receive a $69 waiver towards the higher cost.
This Kroger Rewards World Elite Mastercard member can either offset your Boost membership cost entirely or significantly year after year.
This article was edited by Kendall Little
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