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Earning cash back on groceries, explained
While groceries may be one of the more consistent expenses, there are ways to get some of that cash back.
Some debit and credit cards offer cash back rewards on purchases, such as groceries. Supermarkets and specific brands may also offer cash back deals and discounts on certain purchases. And sometimes it’s possible to use cash back apps to earn even more.
Here are some strategies for potentially maximizing cash back when grocery shopping.
Potential ways to earn cash back on groceries
Availability may vary depending on payment methods, stores, apps, and offers, but some common ways to earn cash back for groceries are:
- Cash back cards: Cash back credit cards and debit cards allow cardholders to earn cash back on eligible purchases. Some cards offer the same rewards rate on every purchase. Other cards offer bonus rewards at certain types of stores, such as supermarkets or grocery stores. For example, the PayPal Debit Card1 offers rotating categories for rewards, which may include groceries, and may have offers for shopping at specific grocery stores.
- Cash back apps: Cash back apps may have grocery-related offers available. The process may vary depending on the app, but generally users need to go into the app and add the offer to their account before shopping and checking out. There may be offers for buying a certain type of food, such as milk or eggs, for brand-name goods, or at specific stores. For online grocery shopping, look into browser extensions like the PayPal Honey shopping extension that may help find applicable cash back offers and promo codes. Various apps may be available that allow users to scan their receipts to earn points or cash back for eligible purchases.
- Loyalty programs: Some grocery stores have loyalty programs that members can use to clip coupons, find discounts, and earn rewards or cash back on purchases.
Shoppers may be able to stack offers to earn cash back from several sources for the same purchase. For example, someone using the PayPal Debit Card could look in the PayPal app for relevant offers, add them to their card, and checkout while also utilizing the specific store’s loyalty program to earn coupons or other rewards.
Understanding the redemption process
The reward redemption process for grocery store cash back earnings depends on how the cash back was earned.
For example, many cash back cards offer several redemption methods, including a statement credit, transfer to a bank account, gift card, check, or applying the rewards to a purchase. Some cash back cards give cardholders points in the issuer’s rewards program, which may offer additional redemption options. Depending on the card issuer and redemption method, there may be minimum or maximum redemption amounts.
Cash back apps also tend to give users several choices, such as transferring the rewards to a linked account such as a PayPal Balance, redeeming as a gift card, initiating a bank transfer, or donating the cash back.
Grocery store rewards may come in the form of loyalty programs that require members to redeem rewards at the store. The earnings might be applied immediately or to future purchases, such as offers to get $5 off $50 purchase, or to earn $5 off the next purchase after spending $30.
Be sure to review any terms and conditions to identify the best redemption method for one’s circumstance.
It all starts in the app
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Key considerations for shoppers
Groceries are often a major household expense, and it’s possible to use cash back offers to save money – and even stack them to make more of a dent on cost. However, be sure to read the offer's terms and conditions to understand how it applies.
With cash back cards, the store rather than the item could be the determining factor. Someone might earn bonus cash back at supermarkets even if they buy plants, household products, or gift cards. But they won’t necessarily earn bonus cash back if they buy groceries at warehouse clubs or superstores.
Similarly, many cash back apps have brand-specific offers and a limited list of eligible stores. Users may be able to scan an item’s barcode to see if it qualifies for a cash back offer before making a purchase.
No matter the method, going out of one's way to buy something because of a cash back offer could lead to spending more money overall and lead to overspending. Be mindful to spend only within one’s means.