Do Target and Walmart Count as Grocery Stores for Credit Card Rewards?
This guide explains why these superstores do not earn grocery rewards and how to earn well there anyway.
Why superstores are not supermarkets
Because they sell everything from electronics to clothing to groceries, Target and Walmart are coded as superstores or discount department stores rather than grocery stores. Credit card bonus categories react to that merchant code, so a card that bonuses supermarkets sees a superstore and pays only its base rate, even if your entire cart is food.
How to earn more there
Two approaches work. A good flat-rate card pays the same rate everywhere, so you are not penalized by the superstore coding. Alternatively, each retailer’s own store card pays an elevated rate at that store specifically, which can beat a general grocery card if you shop there often. Weigh a store card using our Target RedCard review and the broader store cards guide.
The pattern to remember
Superstores are one more case where the store’s category, not your purchase, decides your reward, the same reason Costco does not earn grocery rewards. If groceries are a big part of your spending, do them at an actual supermarket with a grocery card, and use a flat-rate card for superstore runs.
- Target and Walmart code as superstores, not grocery stores.
- A grocery-bonus card earns only its base rate there.
- Rewards follow the store’s category code, not your groceries.
- A flat-rate card avoids the base-rate penalty.
- Each retailer’s own store card pays a bonus at that store.
Frequently asked questions
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