Best credit cards for groceries in Canada - by grocery store

What does your grocery run look like? Do you hop into a car to hunt for bargains at discount grocers, opt for convenience by shopping from the store located closest to home, or actively seek out premium outlets for their better food selection and brighter-lit aisles? Regardless of how (and where) you choose to restock your fridge, you have likely noticed that your grocery bill is more expensive lately. According to Statistics Canada, as of Sept 2023 the price of food increased by 5.8%, compared to the same month in 2022. That’s slightly lower than the 6.9% increase recorded in Aug, but still indicates grocery prices remain elevated for many Canadians.

However, there is good news on the horizon for Canadian shoppers. On July 5th, eligible Canadians (low- and modest-income Canadians) received a one-time grocery rebate payment to help alleviate the rising costs of groceries. Furthermore, on October 5th the federal government and Canada’s biggest grocery chains (Loblaw, Metro, Empire, Walmart, and Costco) committed to implementing a range of measures including price freezes, price matching, and discounts to help stabilize food prices. 

You can also amplify your savings on your grocery bill by using a rewards credit card that offers points or cash back. Since not all credit cards are accepted at every grocery, we’ve broken down our list of the best credit cards in Canada for groceries by store – so you can maximize your savings without having to compromise on where you shop.

Best credit cards for groceries in Canada – by grocery store

• Food Basics, Longo’s, McEwan, Metro, Pusateri’s, Rabba, Safeway, Sobeys, Whole Foods: American Express Cobalt and Scotiabank Gold American Express
• Freshco, Loblaws, Superstore: CIBC Dividend Visa Infinite and Scotia Momentum Visa Infinite 
  
• Best Costco credit card: CIBC Costco Mastercard
• No Frills:  Tangerine Money-Back Card
• Walmart Supercentres: Tangerine Money-Back Card and Walmart Rewards Mastercard

Ratehub.ca’s Take

For the third year in a row, we have selected the American Express Cobalt as the Best Overall Rewards Credit Card in Canada. The American Express Cobalt is the perfect choice for a rewards card that delivers for both everyday spending and travel. The card offers a flexible point redemption system, a strong travel insurance policy, and a generous welcome bonus. With its top-notch rewards system, cardholders earn 5 times the points on eligible restaurants, groceries, and food delivery purchases (spend cap applies), 3 times the points on eligible streaming services, and 2 times the points on ride shares, transit, and gas. 

Ratehub.ca’s take

The Scotiabank Gold American Express Card has a best in class return on spending due to the 5 times multiplier for every $1 spent on groceries, restaurants, food delivery and entertainment and 3 times multiplier on gas and transit. This adds up to a ton of points on your everyday purchases. On top of that, cardholders will not have to pay a foreign transaction fee on foreign currency purchases and have access to a cohesive travel insurance package. 

A caveat of both these above mentioned cards is that – as American Express Cards – they’re not as universally accepted at all grocery chains including most discount grocers and all Loblaw-owned stores. However, if you make your food runs at groceries where American Express is accepted, the Cobalt or Scotiabank Gold should be your top consideration.

Ratehub.ca’s take

The CIBC Costco Mastercard is a great choice if you’re a regular at Costco. You’ll earn 1% back on your in-store purchases, and earn at a higher rate for Costco gas and restaurant spending during the welcome bonus period. Keep in mind, though, that your cash back rewards can only be redeemed at Costco, and are given once per year. 

This card also offers some perks like instalment plans on Costco purchases, offering you a lower interest rate over a longer period of time. It also offers mobile device insurance if you use your card to purchase a phone. However, the card doesn’t offer much else in the way of perks. 

Ratehub.ca’s take

The biggest selling point of the CIBC Dividend® Visa Infinite* is its impressive rewards on everyday essentials. On top of the 1% earn rate for all purchases, this card earns an industry-leading 4% cash back on both groceries and gas purchases – two of the most common spending categories for Canadian households. Thanks to CIBC’s new Cash Back on demand feature, cardholders can choose to redeem rewards at any time as a statement credit starting in increments of $25. 

The card offers a significantly higher earn rate on groceries and gas than most other cards at 4% cash back. Plus, redemption options are extremely flexible, allowing users to redeem their cash back at any time in increments of $25. A notable perk is access to the Visa Infinite Program, entitling you to attend special dining events and hotel perks at participating hotels and restaurants. You’ll also get travel insurance and rental car coverage, which is impressive for a cash back card.

Ratehub.ca’s take

Similar to the CIBC Dividend Visa Infinite credit card, the Scotiabank Momentum Visa Infinite card offers impressive rewards on everyday purchases. This card earns 4% back on groceries, recurring bill payments, and subscriptions like Netflix, 2% on gas, local transit and transportation costs and 1% on everything else. This card can help offset rising household expenses and is considered to be one of the best cash back credit cards.

Plus, the card offers strong insurance coverage which typically is reserved for travel credit cards. The annual fee is also waived for the first year, helping you keep a bit more money in your pocket while earning great rewards.

Ratehub.ca’s take

While the fact that the Tangerine Money-Back Credit Card is a no annual fee card is a big reason behind its popularity, what really sets this card apart is the customizability and flexibility. With this card, you can choose your own bonus categories (which will earn you a strong cash back rate of 2% per dollar spent). This is rare in the credit card market and means you can avoid being locked into a bonus category that you can’t take full advantage of or that doesn’t align with your spending habits. On top of that, your cash back is refunded on a monthly basis (instead of the standard annual reimbursement). 

The 2% cash back per dollar on bonus categories is one of the richest earn rates for a no-fee card, and cash back is paid monthly (instead of the standard annual reimbursement), allowing you to enjoy the benefits of your cash back faster. You also have the freedom to change up your bonus categories at any time (changes will take up to 90 days to come into effect). The card is widely accepted almost everywhere including No Frills and Costco as it is a Mastercard credit card, so you can earn where you shop the most.

Also consider: Walmart Rewards Mastercard

Ratehub.ca’s take

If you are a frequent shopper at Walmart, the Walmart Rewards Mastercard lets you earn Walmart Rewards on purchases everywhere and use them to save when shopping at Walmart. With this card you can earn 1.25% back pre-tax in Walmart Rewards for all your Walmart purchases and 1% back in Walmart Rewards on all other purchases. While it is believed that the earn rate at Walmart doesn't stand out to competitors, the 1% cash back for all other purchases is quite competitive for a no fee credit card. 

Pros

• No annual fee and low income requirements

Also Read

• Four tax credits and rebates for Fall 2023
• The best cash-back credit cards in Canada
• The best no fee credit cards in Canada
• 16 ways to save money on groceries