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The question of which credit cards are best for groceries may seem simple, but it is more complicated than it appears, as it comes down to where you shop and what kind of rewards you prioritize.
The focus here will be on flexible currency travel rewards, as those unlock the highest-value aspirational redemptions, with other good options sprinkled in. Below is a list in chronological order of the best cards to use for groceries.
The Best Overall Options
Amex Cobalt
Hands down, the best overall option for grocery purchases is the Amex Cobalt. Not only are Amex Membership Rewards (MR) the best transferable points currency in Canada, but this card also has a phenomenal return of 5x points earned on grocery and dining.
A quick recap on why we love Amex MR: you can transfer your points to seven different airline loyalty programs, including Aeroplan, Air France KLM Flying Blue, and Etihad Guest, as well as two hotel programs, the most useful of which is Marriott Bonvoy.
RBC Ion+ Visa
My second-favourite option is the RBC Ion+ Visa, which earns 3x points on grocery (and dining, and more). 3x might not sound like the highest return, but RBC points are the second most powerful currency when it comes to travel rewards here in Canada.
Pair it with any RBC Avion card (so you can transfer your points to airline programs) and transfer points at a 1:1 ratio to Cathay Pacific Asia Miles and British Airways Avios. Last week, RBC increased the welcome bonus on the RBC Ion+ Visa to 21,000 points after spending $1,500 in the first six months, making it now a great time to apply.
Avion points are also the exclusive currency in Canada to transfer to American Airlines AAdvantage, one of my favourite frequent flyer programs for long-haul travel. Just a few weeks ago, I redeemed 62,500 AAdvantage points for a one-way flight on Etihad Airways A380 First Class apartments between Abu Dhabi and London, which comes out to 90,000 Avion points.
Additionally, you can pair the RBC Ion+ Visa with the RBC Avion Visa Infinite Privilege Card to redeem for any business or first class flight at a value of 2 cents per point. If you can’t find your preferred flights on the RBC travel portal (powered by Expedia), you can call RBC to have your flight manually approved and receive a statement credit accordingly. Using this method, the return on grocery spend with Ion+ is 6%.
At Loblaws, T&T, No Frills, Atlantic Superstore, and all other Loblaws-owned brands where Amex is not accepted, the RBC Ion+ is my go-to grocery card.
The Best Credit Card for Costco
Costco is a tricky one because it does not code as grocery on any credit card. Therefore, you’ll want to use the card with the highest return on uncategorized spend. On top of that, Costco only takes Mastercard.
My favourite card to use at Costco is the Rogers World Elite Mastercard. If you are a Rogers, Fido, or Shaw customer, the Rogers Red Mastercard functions the same for Costco purchases.
It earns 2% cash back on all non-U.S. dollar purchases, and you earn an extra 50% in cash back when redeeming for Rogers, Fido, or Shaw, giving it an effective 3% return at Costco. As a frequent international traveller, I find this pairs well with my Rogers 64-country roaming-included mobile plan.
Even as a non-Rogers, Fido, or Shaw customer, a flat 1.5% return is very decent (on the World Elite). Of course, if your goal is to rack up airline loyalty programs for premium cabin flights, you can use your Cathay World Elite Mastercard or Air France KLM World Elite Mastercard.
Best Cash Back Cards for Groceries
Not every household wants to earn travel rewards, and for those who want to see returns in pure, hard cash, there are a few good options as well.
The Scotiabank Momentum Visa Infinite is easily the best cashback card in Canada and offers a generous 4% cashback on all grocery purchases up to $25,000 in annual spend. It also offers first-year free and 10% cash back for the first 3 months (up to $2,000 in total purchases) if you sign up today.
You can earn slightly higher returns with the Neo World Elite Mastercard, which offers 5% cash back on the first $1,000 spent each month on groceries. Depending on how much cash you have in your Neo Everyday Account, you can get up to 7% back ($5,000- $10,000 required).
To avoid credit card fatigue, I’d stick with the Scotiabank Momentum Visa Infinite and use it whenever I want to earn cash back on any purchase.
Other Notable Mentions
The credit cards mentioned above cover all scenarios: the best Amex, Visa, and Mastercard options.
If you’re looking to earn different rewards or have hit the cap on rewards (Amex Cobalt has a $2,500 monthly cap on 5x earnings), here are a few other good options:
- Scotiabank Gold American Express Card: 6 Scene+ per dollar spent at Sobeys, FreshCo, IGA, and select other Empire Company stores
- MBNA Rewards World Elite Mastercard: 5 points per $1 spent at grocery stores
The Scotiabank Gold Amex would be my preferred pick of the 3 as Scene+ points are easy to redeem at 1 cent per point towards any travel purchase, and 6x puts it slightly above the other options.
Takeaway
The best credit card to use at grocery stores is the Amex Cobalt. For stores that don’t accept Amex, the RBC Ion+ Visa is a sleeper pick when paired with an Avion credit card, especially the RBC Avion Visa Infinite Privilege Card.
For Costco, focus on a credit card with the highest return on non-categorized spend, such as the Rogers World Elite Mastercard or on a card with a useful points currency, like the Cathay Pacific or Air France KLM co-branded cards.
Finally, if you prefer to earn cash back, the Scotiabank Momentum Visa Infinite is the obvious answer.
