Does Amex count Costco as grocery?

Does Amex count Costco as grocery?

Overview of Amex Rewards

Amex is well-known for its robust rewards program, especially in the category of groceries. Many Amex cards offer elevated rewards for spending at supermarkets, making them an attractive option for individuals and families looking to earn extra points or cashback.

What Defines a Grocery Store?

Before we determine whether Amex classifies Costco as a grocery store, let's understand how they define this category. Generally, a grocery store is a retail establishment primarily engaged in selling food products, both fresh and packaged, for household consumption.

The Amex Merchant Classification System

Amex uses a merchant category code (MCC) system to classify businesses for rewards purposes. Each merchant is assigned a specific code based on their primary product or service. These codes dictate the rewards rate that Amex cardholders receive when making purchases at a particular merchant.

Costco's MCC

According to the Amex merchant classification system, Costco is typically coded as a wholesale club rather than a grocery store. This categorization is primarily due to the wide array of products they offer, which go beyond groceries and include electronics, furniture, clothing, and more.

As a result, when you use your Amex card at Costco, the rewards you earn may not be at the elevated rate you would typically receive at a standalone grocery store. However, it's important to note that these rewards are ultimately determined by the specific Amex card you hold and its associated terms and conditions.

Exceptions to the Rule

While Costco is generally not classified as a grocery store, there are exceptions depending on the specific Amex card you possess. Some Amex cards may offer limited-time promotions or customized rewards that grant bonus points or cashback for Costco purchases during certain periods.

In such cases, it's crucial to carefully review the terms and conditions of your Amex card's rewards program or contact Amex customer service to determine whether Costco qualifies as a grocery store for your specific card.

Maximizing Rewards at Costco

If you frequently shop at Costco and want to earn more rewards, there are alternative options to consider. For example, you could explore applying for a co-branded Costco credit card, which often offers enhanced rewards and benefits for Costco purchases.

Alternatively, you can also investigate other credit cards that provide higher rewards rates for general spending or offer flexible rewards that can be redeemed for Costco purchases or gift cards.

Tips for Maximizing Amex Rewards

Even if Costco does not count as a grocery store for Amex rewards, there are still strategies to maximize your rewards when shopping for groceries:

1. Find standalone grocery stores in your area that accept Amex and shop there for your weekly groceries to earn higher rewards.

2. Utilize digital coupons and discount apps to save money on groceries while still earning Amex rewards.

3. Consider purchasing gift cards for your favorite grocery stores and using them at Costco for your shopping needs. This way, you can earn elevated rewards on the gift card purchase and still benefit from the cost savings at Costco.

In Conclusion

While Amex generally does not categorize Costco as a grocery store, there may be exceptions depending on the specific Amex card you possess. To maximize your rewards, it's essential to review the terms and conditions of your Amex card's rewards program or contact customer service for accurate information. Additionally, exploring other credit card options and implementing strategic shopping habits can help you earn more rewards while shopping for groceries. Happy shopping and saving!

Frequently Asked Questions

No, American Express does not count Costco as a grocery store for the purpose of earning bonus rewards on their credit cards.

No, Amex does not offer bonus rewards for purchases made at Costco as it is not categorized as a grocery store.

No, currently there are no American Express credit cards that offer bonus rewards specifically for shopping at Costco.

Although you won't earn bonus rewards for shopping at Costco with an Amex card, it can still be worth using if it offers other benefits such as extended warranty or purchase protection.

There are several credit cards that offer bonus rewards for grocery store purchases, which can be used for shopping at Costco. Examples include the Chase Freedom Flex, Blue Cash Preferred from American Express, and the Citi Double Cash Card.