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Maximize Your Grocery Store Rewards with O1ne Mortgage

At O1ne Mortgage, we prioritize helping our clients make the best financial decisions. Understanding how to maximize your grocery store rewards can significantly benefit your budget. Here’s a comprehensive guide to help you get the most out of your rewards credit cards when shopping for groceries.

Understanding Merchant Category Codes (MCC)

Merchant Category Codes (MCC) are four-digit numbers that classify businesses by type. These codes are essential for tracking payment processing charges and determining bonus rewards on purchases. Each merchant that accepts credit cards has a category code, which can be self-designated or assigned by the payment network.

What Qualifies as a Grocery Store?

Grocery stores are typically classified under specific MCCs that identify them as grocery stores or supermarkets. These can range from small, independent stores to large chains. For a purchase to be eligible for grocery-category rewards, the business must be classified as a grocery store or supermarket.

Grocery store purchases may also include grocery delivery services. However, it’s crucial to read the terms and conditions of your credit card to understand what qualifies as a grocery purchase.

What Does Not Qualify as a Grocery Store?

Not all stores that sell groceries are classified as grocery stores. Convenience stores, superstores, discount stores, warehouse clubs, and meal-kit delivery services generally do not fall under the grocery store category. Additionally, drugstores that sell food typically do not qualify.

Some stores may have multiple MCCs. For example, a supermarket with a pharmacy and gas station might have separate MCCs for each section. Purchases from grocery-store-branded pharmacies and gas stations usually do not count as grocery purchases.

How to Maximize Your Grocery Store Rewards

To get the most out of your grocery store rewards, consider the following strategies:

Customize Your Rewards

If you shop at superstores or warehouses, choose a card that allows you to customize rewards. You could earn up to 3% cash back by selecting your preferred store.

Activate Rotating Bonus Categories

For cards with rotating bonus categories, activate the bonus each quarter. Use reminders to ensure you use the correct card for these purchases. Most cards have a quarterly maximum of $1,500 in combined purchases for bonus categories.

Consider a Card with an Annual Fee

Some cash back cards offer up to 6% cash back on groceries year-round, despite having an annual fee. Depending on your spending habits, this could be a worthwhile option.

The Bottom Line

Using rewards cards strategically can help you stretch your grocery budget or earn valuable rewards. Understanding your credit card issuer’s definition of a grocery purchase is crucial. You might already have a rewards card that suits your grocery shopping needs. Activating bonus categories or using a store-specific credit card can help you save even more.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. Our team is here to assist you with the best financial solutions.

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