You may have noticed that a lot of issuers don’t classify Walmart and Target as grocery stores or supermarkets. Some consumers find out the hard way when they check their rewards and discover they didn’t earn as much as they thought.
Walmart and Target are classified as superstores, discount stores or retail stores. Basically, everything except grocery stores and supermarkets.
Since Walmart and Target are excluded from the high earning potential offered on grocery store credit cards, consumers have to get creative if they want to earn rewards at these stores.
Best Credit Cards for Walmart and Target
The type of credit card you use for Walmart and/or Target will depend on the way you shop. Some reward online purchases while others reward in-store purchases.
Best for In-Store Purchases
The U.S. Bank Shopper Cash Rewards® Visa Signature® Card is a top card for Walmart and Target purchases. Each quarter, you can earn 6% cash back on two retailers of your choosing (up to $1,500 in combined purchases), which can include Walmart and Target.
You can also earn 3% cash back on your first $1,500 in eligible purchases on your choice of one everyday category. These include wholesale clubs (like Costco and Sam’s Club), gas and EV charging stations, and bills and utilities. All other purchases earn 1.5% cash back.
There is an annual fee of $95, but it’s waived the first year. Just keep that in mind when you’re calculating your rewards potential.
[Read: Credit Cards With No Annual Fee]
Another option is the Discover it® Cash Back card, which allows you to earn 5% cash back on different categories each quarter. However, this one is a little bit more of a gamble.
The last time Walmart and Target were included in Discover’s rotating categories was 2024. And they were in different quarters, so you couldn’t earn 5% cash back at both stores simultaneously.
However, if you consistently use Discover’s other frequent categories — such as Amazon.com, restaurants and gas stations — the cash back card might be worth it. Just remember the 5% rewards rate is capped at $1,500 in spending every quarter.
Best for Online Purchases
The Bank of America® Customized Cash Rewards credit card offers a good workaround for consumers who primarily shop online and get their items delivered. The Customized Cash card earns 3% cash back in the category of your choosing — which can be online shopping. Plus, the Customized Cash card earns an extra 3% cash back the first year. So, for your first year of account ownership, you can earn 6% cash back on online shopping purchases.
You also earn 2% cash back at grocery stores and wholesale clubs, plus 1% cash back on all other purchases. There’s no annual fee, and if you’re a Bank of America Preferred Rewards member, you can earn a 25% to 75% rewards bonus on every purchase.
There are a few caveats to keep in mind, though. For example, you can’t order something online and pay for it in-store to receive your rewards. Purchases made in-store using a mobile or digital wallet are also not classified as online purchases.
The Blue Cash Everyday® Card from American Express is another option for online purchases. There’s no annual fee, and you can earn 3% cash back at U.S. supermarkets, on U.S. online retail purchases and at U.S. gas stations. Just know there is a yearly $6,000 spending cap on each category. After you hit your threshold, all purchases will earn 1% cash back. See Rates & Fees
[Read: Best Dining Credit Cards.]
Since the Bank of America Customized Cash card and the Blue Cash Everyday card feature similar rewards rates, you may want to look at welcome offers to break the tie. Remember, the best offers don’t make you overspend.
Finally, if you’re a PayPal user, the PayPal Cashback Mastercard could be a good option for you. I recommend this one with a grain of salt, though, as it really only should be for PayPal loyalists and used as a supplementary credit card, not a primary one.
The PayPal Mastercard comes with no annual fee, and you can earn 3% cash back when you check out with PayPal, plus 1.5% cash back on all other Mastercard purchases. To ensure you earn that 3%, you need to add the PayPal Mastercard to your payment options in your Walmart or Target app and choose it at checkout.
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Shopping at Walmart and Target? What Rewards Credit Card You Should Use Might Surprise You originally appeared on usnews.com
