Supermarket Cash Back: Unexpected Earning Strategies
Amex Blue Cash Preferred offers up to 6% cash back at certain chain stores in some US states, such as Trader Joe's and Whole Foods. Users who purchase discounted products at these stores can earn up to 10% effective earnings during certain periods thanks to promotional overlaps. Some credit cards include not only chains but also independent local markets in the supermarket category. For example, the U.S. Bank Altitude Go Card can classify purchases made at neighborhood grocery stores as supermarkets based on the merchant's POS system category code.
Users who shop at wholesale stores like Costco can receive cashback from both wholesalers and grocery stores during temporary promotional periods with Chase Freedom Flex. This means that the cashback multiplier can be higher for bulk purchases. Some users can combine multiple benefits, such as grocery cashback and digital membership/subscription promotions, in a single transaction when shopping through grocery delivery apps like Instacart.
Unusual Cash Back on Gasoline Purchases
Sam's Club Mastercard offers up to 5% cash back on purchases made at Sam's Club gas stations, and in some states, this rate combines with state tax discounts to provide an effective cash back of $0.30 per liter. The Citi Custom Cash Card designates the category where the user spends the most as the 5% cashback category. If only gas is purchased during the month, the entire limited cashback amount comes from gas purchases.
Gasoline purchases made with credit cards can be combined with digital cashback campaigns on certain platforms (such as GetUpside and GasBuddy) to provide cashback from multiple sources per liter. Some users who drive RVs or large SUVs can purchase promotional fuel from certain station chains and earn both card cashback and loyalty program points on those purchases at the same time.
Hidden Benefits for Restaurant Spending
The American Express Gold Card offers 4% cashback at local businesses in addition to chain restaurants. However, this is only valid if the merchant's Merchant Category Code (MCC) is correctly entered as “dining.” If some small restaurants have this category listed as “catering,” cashback cannot be claimed. Some banks may classify orders placed through food delivery platforms (Uber Eats, DoorDash) under both the “restaurant” category and the “subscription” or “online shopping” category. This can result in two different types of cashback from a single order.
Chase Sapphire Preferred offers 2x points on restaurant spending, while American Express cards offer cashback rates exceeding 4% at certain restaurants classified as “fine dining.” As a result, some users optimize their earnings by selecting restaurants based solely on their MCC. Some credit cards have more specific campaigns such as “weekend restaurant spending.” For example, Capital One SavorOne offers up to 5% restaurant cashback on Fridays and Saturdays during certain periods.
Surprise Categories and Seasonal Cashback
Discover It Card offers cashback on categories that change every quarter. In the fourth quarter of 2023, both Amazon and grocery stores offered 5% cashback, which included non-food purchases in the grocery category, allowing users to earn cashback on those purchases as well. Some users can earn additional cashback by purchasing drinks from Starbucks or other coffee chains located inside grocery stores, as the payment is processed at the grocery store checkout, qualifying for both the grocery cashback and mobile payment campaign.
During summer campaigns, fast food purchases made before travel are counted under both the “restaurant” and “travel preparation” categories. This can trigger two campaigns from the same purchase.
Maximum Cashback Combinations with Card Selection
Cards that offer rotating categories, such as Chase Freedom Flex and Discover It, require users to change their spending strategy every three months. Therefore, some users track the calendar throughout the year and plan their quarterly purchases accordingly, earning hundreds of dollars in extra cashback each year. Those who strategically use multiple cards combine them in ways like “Amex Blue Cash Preferred for groceries, Capital One SavorOne for restaurants, and Citi Custom Cash for gas” to maximize cashback in each category. This method is known as the “stacking strategy” in the US.
Some loyal users make payments using QR or contactless payment options through Apple Pay or Google Pay before making a purchase. This payment method allows users to receive cashback from both the card and mobile payment campaigns simultaneously during certain periods. Some apps (CardPointers, MaxRewards) recognize the user's credit cards and notify them in real-time which card to use at which store. This prevents the use of the wrong card during shopping and ensures maximum cashback.
Cashback Tricks That Vary by Product Type
Some cards offer cashback rates not only for general categories such as “food products,” but also based on the location of the product within the store. For example, Amex does not include products purchased in the pharmacy section in the grocery category in some states. Large supermarket chains such as Whole Foods, Trader Joe's, and Kroger offer cashback rates in addition to discounts on their own brand products. This encourages some users to choose store brands over branded products.
Although flat-rate cards such as Citi Double Cash (2%) are valid for all categories, it is recommended to use other cards in combination with them and only purchase “discounted products” with these cards. This is because the real advantage of category-based cashback lies in specific purchases. Some supermarket chains categorize in-store restaurants or cafes under different codes. For example, a sandwich purchased at Subway inside Walmart may be classified as a grocery purchase rather than a restaurant expense on some cards, potentially offering additional benefits.
Cashback Limits and Hidden Caps
Some cards have monthly or annual cashback limits. For example, Amex Blue Cash Preferred has a $6,000 annual limit on grocery purchases; once this limit is exceeded, the rate drops to 1%. As a result, users switch to other cards toward the end of the year. The Chase Freedom Flex card sets a $1,500 quarterly limit for 5% cash back. Once this limit is exceeded, remaining spending is processed at 1%. Some users split their purchases across several days to spread them across different quarters.
Some users try to balance limit overages within their household by including their spouse or family members' cards in their plan. For example, if each member of a couple has their own card, they can take advantage of the same promotion twice.
Ways to Double Cash Back with Loyalty Programs
Gas stations like Shell, Exxon, and BP have their own loyalty apps that offer fixed or percentage discounts per liter in addition to the cashback provided by credit cards. These two benefits can stack up to provide an effective savings of up to 10%. Grocery store chains like Kroger and Safeway offer loyalty cards that earn extra points on certain products, which can be used for fuel discounts. When combined with credit card cashback, even buying a box of cornflakes can result in a gas discount.
Some users who have subscriptions like Amazon Prime or Walmart+ can combine the special grocery discounts offered by these memberships with credit card cashback to directly save money on their purchases.
Category Confusion and Incorrect Coding Issues
Credit card cashback offers are based on the MCC (Merchant Category Code) information of the business where the transaction took place. However, some small businesses or non-chain stores may not appear as grocery stores or restaurants because they have entered the wrong category code. In such cases, the user cannot receive the cashback they are entitled to. For example, if an independent supermarket chain has defined itself as a “discount store” in its POS system, cards like Amex or Citi will not recognize the transaction as a supermarket purchase and will not provide cashback.
Similarly, products purchased from the market section of gas stations (e.g., coffee, snacks) may sometimes be coded as “convenience store” or “general retail” instead of “gasoline,” resulting in a lower or zero cashback rate. Users may only notice such issues when reviewing their monthly statements. However, some advanced financial apps (e.g., Tiller Money, Empower, CardPointers) analyze the MCC code at the time of the transaction and provide immediate alerts. Orders placed through online food delivery services such as DoorDash and Uber Eats may appear to fall under the restaurant category, but they are sometimes coded as “online delivery service,” resulting in only 1% cashback instead of 4% or 5%.
Common Strategic Mistakes and Examples
Some users redirect all their spending to a card with high cashback, thinking it's advantageous. However, a card that offers 6% cashback on grocery purchases may only offer 1% in other categories. Using the card everywhere reduces potential earnings. If a returned product is not deducted from the cashback calculation by the system, it can cause confusion in the next month's calculations. For example, if a user makes a $500 grocery purchase and receives a 6% cashback, but then returns $400 of the purchase, the system may process the cashback rate as 1% instead of 6%.
Users who only focus on earning points when applying for a card may overlook cashback limits or annual fees. For example, while the Amex Gold Card offers high cashback on restaurant spending, its $250 annual fee may neutralize the cashback advantage for users with low spending. Some cards only offer promotional cashback for “purchases within the U.S.” For example, a purchase made at Whole Foods in a location outside the US may be classified as a “foreign transaction” rather than a grocery purchase in the cashback system, and the expected earnings may not be realized.
The Changing Face of Cashback Systems and Future Dynamics
Some new-generation fintech cards (e.g., SoFi, Apple Card, Brex) offer dynamic cashback rates based on user behavior rather than fixed category definitions. This provides advantages in a particular category to users who spend more on restaurants in one month, while automatically optimizing cashback rates when users shift to grocery-heavy spending in the next month. Some AI-powered banks have begun offering tools that analyze users' spending history over the past 12 months to project how much cashback they can earn throughout the year with each card. These tools recommend card rotation to maximize earnings.
Although the cashback rates of some premium cards (Chase Sapphire Reserve, Amex Platinum) may seem low, when side benefits such as airline lounge access, foreign exchange rate advantages on overseas spending, and travel insurance are taken into account, they can be more profitable than cashback cards in terms of total value.
The Final Word on Cashback Strategies: “Manufactured Spending”
In the US, some users employ a strategy called “manufactured spending” to maximize cashback. In this strategy, an individual purchases a gift card (e.g., Visa/Mastercard gift card) from a store, then uses the card to pay bills or withdraw cash, effectively looping the spending cycle. However, this method may be flagged by banks as suspicious activity. Some users form spending groups with friends to trigger cashback campaigns. For example, one person does the grocery shopping, and another sends them digital payment. This way, everyone gets the maximum benefit on their own card. This technique is known as “spending pooling.”
Lesser-Known Cards That Offer High Cashback
The PenFed Platinum Rewards Visa, though not widely known, offers 5x points on gas purchases and 3x points on grocery shopping. While it is particularly popular among military personnel and federal employees, it is actually available for general use. The Alliant Cashback Visa Signature Card is one of the rare cards that offers 2% cashback without an annual membership fee. However, while the card offers 2% cash back in the first year, it requires annual spending or account balance criteria to maintain the high cash back rate in subsequent years.
The Navy Federal More Rewards Card offers 3x points in restaurants, supermarkets, and gas categories. This card offers a special advantage for those with a military background or who are eligible for membership through family members, but most users are unaware of its existence. The Fidelity Rewards Visa Signature provides a 2% net value gain for users who transfer cash back directly to their investment account. This makes it a hybrid card that combines both cash back and investment strategies.
Chain Partnerships and Card-Specific Store Benefits
Chase Freedom Flex partners with major pharmacy chains such as Walgreens and CVS to include purchases made at these stores in the supermarket category during certain periods. This allows users to earn 5% cash back on purchases that would not normally qualify for the supermarket category. Through special campaigns with grocery chains like Whole Foods and Boxed, Amex cardholders can receive up to 10% temporary cash back at these stores. However, these campaigns are only available to registered users and are time-limited.
Through partnerships with online food ordering platforms like Uber Eats and Grubhub, Capital One offers extra points or cash back on purchases made through these apps, even if they are not categorized as restaurants. Chase Sapphire Reserve offers up to 10% cash back on purchases made at select restaurant chains in certain cities, but these campaigns are limited to reservations made through the Chase app. This means that if you pay directly at the restaurant, you will not receive this benefit.
Regional Cashback Differences
In some states, grocery and gas station codes are not federal, but are based on POS providers' databases in each state. For example, some gas stations in Nevada are double-coded as grocery + fuel. This can cause the card to trigger both categories. In large cities like New York, restaurant POS systems are often outsourced to third-party companies, so some local businesses may have incorrect or missing MCC codes. This can prevent refunds. Different branches of the same chain in different states may apply different rates to the same purchase.
In California, some cards (especially fintech cards for young people, such as Greenlight and Step) code purchases made at organic grocery chains like Whole Foods or Sprouts as “health & wellness.” This category may not be included in the refund system. In states like Texas, small restaurants inside gas stations (e.g., Taco Bell or Dunkin' Donuts kiosks) are processed as either restaurants or “gas station retail” depending on the POS system. This directly affects the card's cashback rate.
Technology-Based Rewards Tracking and Automation
Some advanced users track rewards campaigns using automation systems such as Zapier or IFTTT to optimize their credit card spending. For example, they receive automatic alerts when spending reaches a certain category and maximize benefits without exceeding campaign limits. Mobile apps like “MaxRewards” and “Wallaby” identify all the cards in the user's wallet and recommend the card that will provide the most savings based on the user's current location and the store they are in. This eliminates the risk of using the wrong card in the wrong place.
Some users transfer their credit card statements to platforms like Google Sheets or Notion, manually calculate refunds based on spending categories, and analyze how much they earned in each category monthly. This data is used to establish new spending strategies.
Maximum Return Strategies with Point-Based Cards
Cashback cards may seem simple because they offer direct cash back, but point-based cards can provide higher effective returns when used correctly. This difference is particularly striking for travel and premium spending. Chase Sapphire Preferred offers 3 points per dollar spent on restaurants and grocery stores. These points can be used in Chase's “Ultimate Rewards” system with a 25% bonus on travel bookings. For example, spending $100 → 300 points → up to $375 in travel discounts.
American Express Membership Rewards points offer an effective return of 1.25–2.00% through transfer partners (Air Canada, British Airways, Marriott Bonvoy, etc.). Therefore, a $100 spend at a restaurant or grocery store can be worth 3–4 dollars, not just 2 dollars, with proper use. Thanks to features called “bonus multipliers” in points-based cards, the cashback rate increases with temporary promotions. For example, Capital One Venture X offers 5x miles on restaurant spending during certain periods, and these miles can be converted into up to 1.8% cashback on travel bookings. Some users lose the value of their points by spending them only on low-value channels like gift cards or Amazon purchases. Expert users aim for the highest return by using their points for airline ticket upgrades, hotel room upgrades, or high-season reservations.
Real Earnings on Annual Fee Cards
The Amex Gold Card charges an annual membership fee of $250, but offers 4% cash back at restaurants and 4% at supermarkets. For someone who spends an average of $1,000 per month in these two categories, the annual cash back reaches $480, more than doubling the card fee. The Chase Sapphire Reserve's annual fee of $550 is daunting. However, when you factor in the $300 travel credit, Priority Pass lounge access, rental car insurance, Global Entry/TSA PreCheck fee reimbursement, and 50% bonus points, the total benefits can exceed $1,000.
Some cards offer a “waived first year” benefit. This means that the annual fee is not charged for the first year. This gives users a chance to test the card. If you don't earn enough cashback or points, you can cancel your membership at the end of the year without incurring any fees. Some low-profile cards, such as Wells Fargo Autograph and Bank of America Customized Cash Rewards, offer up to 3% cashback on grocery, restaurant, and gas purchases without an annual fee. This may be a more sensible option for users with lower spending habits.
Cashback Debit Cards: A Profitable Educational Tool for Children and Young Adults
The Greenlight debit card offers customized spending limits, category-based spending tracking, and up to 1% cashback on some plans for young people under the age of 18. For parents, it offers the advantage of controlling spending and instilling financial habits. The GoHenry card works similarly with a category-based cashback system. Children receive 1% cashback on fast food purchases and 0.5% on grocery shopping, which is low but consistent. This system creates both an incentive and an educational structure.
New-generation youth banking apps like Current and Step send instant notifications after each purchase. Some also offer features like converting cashback into cryptocurrency or transferring it to a savings account. This way, cashback contributes to financial education. Since most of these systems are US-based, children learn the concept of cashback at a young age while gaining early experience in building credit history, developing spending awareness, and practicing budget control.
Cashback Categories Beyond Restaurants, Grocery Stores, and Gas Stations
Many users focus solely on traditional categories when it comes to cashback, but some cards offer attractive benefits in unexpected areas. Streaming services (Netflix, Spotify, Disney+, YouTube Premium) fall under the 3% cashback category on cards like U.S. Bank Altitude Go and Wells Fargo Autograph. This translates to approximately $18 in annual savings on a monthly digital subscription of $50.
Phone bills offer up to 3% cash back on certain cards, such as the Chase Ink Business Preferred. Individual users can also benefit from communication category perks with some cards, such as the Capital One SavorOne. Fitness and gym memberships (Equinox, Planet Fitness, ClassPass) offer 2-4% cash back under the “lifestyle” category on some premium cards. American Express occasionally launches statement credit campaigns of up to $100 at select health & fitness chains. Transportation apps (Uber, Lyft, VIA) typically fall under the travel or restaurant categories. Chase Sapphire Preferred and Reserve offer high point-based returns on such expenses, while Apple Card offers up to 3% cash back when paying with Apple Pay.
Cash Back Potential for Digital Services and Subscriptions
The inclusion of digital services such as Spotify Premium, Hulu, and HBO Max in cash back varies from card to card. However, with the Bank of America Customized Cash card, users can choose which category they want to receive 3% cash back in, and digital services can be included in this coverage. Amazon Prime membership is classified as a “utility” or “subscription” category by some card providers during certain promotional periods, offering up to 5% cash back. The Discover It card, in particular, includes Amazon spending in the 5% category during the last quarter of each year.
Software subscriptions such as Adobe Creative Cloud and Microsoft 365 are eligible for cash back, especially on business cards. Users who make annual payments may receive 2-3% cashback when their expenses are categorized as “software & SaaS.” Some fintech cards (e.g., Bilt) even include rent payments in their cashback eligibility. The Bilt card allows users to pay rent with the card at no additional cost and earn points on these transactions, enabling them to earn rewards on one of their largest recurring expenses.
Cashback Hacks and Temporary Promotion Tactics
Amex Offers provides users with extra 10-20% cashback on specific stores or services through campaigns loaded onto their accounts. For example, targeted users may receive offers such as a $30 refund on purchases over $150 at Best Buy. In the “gift card stacking” strategy, a user purchases an Amazon or restaurant gift card from a supermarket chain. Since this purchase falls under the grocery category, the user receives a high cashback, and then the restaurant expense made with the card is also directly deducted.
Some users use cashback portals such as Rakuten, TopCashback, and BeFrugal before shopping online. Through these sites, users can receive an extra 1-15% cashback on top of the credit card cashback. During promotional periods (e.g., Black Friday, Prime Day, Memorial Day), promotions from both the card issuer and the merchant may overlap. In such cases, the cashback rate can effectively reach 20-25%. However, these opportunities are typically short-lived, and users must stay vigilant. Some cards offer both bonus points and cashback to existing cardholders who refer new users. This system is widely used by content creators who recommend high-cashback cards. With proper timing, the earnings from these campaigns can even offset an annual membership fee.