Grocery MCC Codes: Why Costco and Walmart Might Not Count as Groceries

Many credit cards offer 3-6% cashback on groceries, making it one of the most valuable bonus categories. But there's a catch: not every store that sells groceries uses the grocery MCC code. This guide explains which stores qualify—and which surprisingly don't.

The Primary Grocery MCC Code

The main MCC code for grocery stores is:

Stores That Usually Code as Grocery (5411)

The Costco Confusion: Wholesale Club MCC

One of the most common surprises for credit card users is that Costco and Sam's Club don't code as groceries. They use:

Why This Matters

If you have a card that offers 5% back on groceries but only 1% on everything else, shopping at Costco means you're leaving 4% on the table. Some solutions:

• Use the Costco Visa card: Offers 2% back at Costco
• Use a card with wholesale club bonuses: Some cards specifically include MCC 5300
• Use a high flat-rate card: A 2% everything card may be better than 1% on wholesale

The Walmart/Target Problem

Walmart and Target typically code as MCC 5311 (Department Stores), not grocery stores—even when you're buying groceries.

This classification makes sense from a business perspective: these are department stores that happen to sell groceries, not grocery stores that happen to sell other items.

Workarounds for Walmart

• Walmart.com grocery pickup: May code differently in some cases
• Walmart Neighborhood Market: These smaller, grocery-focused stores sometimes code as 5411
• Use the Capital One Walmart card: Offers 5% on Walmart.com regardless of MCC

Other Grocery-Related MCC Codes

Some credit cards include additional food-related MCCs in their grocery category:

Online Grocery Delivery Services

How do grocery delivery services code? It varies:

• Instacart: Usually codes as the underlying store (e.g., if you order from Costco via Instacart, it may code as 5300)
• Amazon Fresh: Often codes as Amazon (5399/5262), not grocery
• Walmart Grocery: May code as 5311 or 5411 depending on the transaction
• Shipt: Similar to Instacart—varies by underlying retailer

Best Credit Cards for Groceries

Here are some cards known for excellent grocery rewards:

• Blue Cash Preferred (Amex): 6% at U.S. supermarkets (up to $6,000/year)
• Citi Custom Cash: 5% on your top spending category each billing cycle
• Chase Freedom Flex: 5% on rotating categories (sometimes includes groceries)
• Capital One SavorOne: 3% on groceries year-round