Chase Freedom 5% Categories Q4 2026: What Counts as Grocery and Dining

Chase Freedom and Freedom Flex pay 5% from October 1 to December 31, 2026, on three categories: grocery stores, dining, and donations to the American Red Cross. The 5% covers the first $1,500 of combined spending in those categories, and you have to activate by December 14. (Chase)

The bonus is small in dollars: $60 at most above the 1% base. The catch is in the definitions. Walmart, Target, Costco and other warehouse clubs don't count as grocery stores, and delivery apps count as dining only when they post as a restaurant. On the Freedom Flex, dining earns 7%, which makes dining the better use of the $1,500 cap.

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Q4 2026 at a glance

Discover's categories come from The Points Guy's Q4 summary. Discover says purchases earn 5% only after you activate, so activate before you spend.

Which stores count as grocery

Chase decides the category from how the merchant is classified, not from what you buy. A carton of eggs at Kroger earns 5%. The same carton at Target earns 1%, because Chase excludes "larger stores that sell a wide variety of goods and groceries, such as Walmart and Target, wholesale clubs, warehouse clubs, discount stores."

Costco fails twice for Freedom Flex. Warehouse clubs are excluded from the category, and the Flex is a Mastercard, while Costco warehouses accept only Visa credit cards. For the best way to pay at Costco, see what credit cards Costco accepts and the best Costco credit cards.

What counts as dining

Chase's definition covers "sit-down or eat-in dining, including fast food restaurants and fine dining establishments." It excludes bakeries, caterers and meal kits. Restaurants inside stadiums and hotels count only if they are classified as restaurants rather than as part of the venue.

The coffee-shop and bakery rules work the same way here as for every other dining card. Our coffee shop guide explains how merchant category codes decide this.

Why Freedom Flex earns 7% on dining

Freedom Flex already earns 3% on dining all year. Chase's terms say that when dining is a quarterly category, you earn both: 1% base, plus 4% from the quarterly bonus, plus 2% from the dining offer, for 7%. The original Freedom card has no everyday dining rate, so it earns 5%.

That sets the priority for the $1,500 cap. On a Flex, dining beats grocery by 2 points, so let dining fill the cap first.

If you already hold a 4% grocery card, the grocery bonus adds only 1 point ($15 on $1,500). In that case the cap is better spent on dining, where your other card likely earns 3% or 4%. Our grocery card guide and dining card guide list the everyday rates to compare against.

Run your grocery and dining spend through the optimizer →

What the points are worth with a Sapphire card

Freedom "cash back" is paid in Chase Ultimate Rewards points. On their own they are worth 1 cent each. If you also hold a Sapphire Preferred, Sapphire Reserve or Ink Preferred, you can combine the points onto that card and redeem them through Points Boost or transfer them to airline and hotel partners.

These are the same per-point values our Chase points calculator uses. Points Boost pays 1.5 cents only on the limited share of bookings Chase boosts, and transfers only reach 1.75 cents if you book an award that is actually worth that much. Treat the top row as the guaranteed number. Our Chase points value table covers other balances.

Pairing Freedom with Discover it in Q4

Discover's Q4 categories overlap with Chase's on restaurants only. If you hold both cards, you can earn 5% or more on $3,000 this quarter:

• Put dining on the Freedom Flex until it reaches $1,500 (7%).
• Put utilities, which includes phone and internet service, on the Discover it until it reaches $1,500 (5%).
• Put groceries on whichever everyday grocery card you already hold.

Utilities are a good fit for the Discover side because few cards pay more than 2% on them. A household paying $500 a month for electric, phone and internet fills the $1,500 cap by December. Our utility bills guide covers the processing fees to check before paying a utility by card.

How to activate

Activate the Chase bonus at chase.com/freedom or in the Chase app before December 14, 2026. Purchases from October 1 count once you activate. Discover cardholders activate in the Discover app or online, and Discover pays 5% only on purchases made after activation.

Set a reminder for January 1 as well, when the Q1 2027 categories start. We will update this page each quarter.

Bottom line

Activate today. Chase's bonus is worth $45 to $75 in cash against a 2% card, more if you transfer the points, and the only effort is one click and sending dining or grocery spend to the right card. Skip it at Costco, Walmart and Target, and check the first delivery-app order before sending more that way.

If you're deciding whether a rotating-category card belongs in your wallet at all, the best no-annual-fee cards guide compares it with flat-rate options, and the optimizer runs the numbers on your actual spending.

Frequently Asked Questions

What are the Chase Freedom 5% categories for Q4 2026? Grocery stores (excluding Walmart and Target), dining, and American Red Cross donations, from October 1 to December 31, 2026, on up to $1,500 combined. Activate by December 14.

Does Costco count as a grocery store for Chase Freedom? No. Chase excludes warehouse clubs, and Costco warehouses accept only Visa credit cards, so the Freedom Flex (a Mastercard) can't be used there in-store.

Does Freedom Flex really earn 7% on dining? Yes, on the first $1,500. Chase's terms combine the 1% base, the 4% quarterly bonus and the Flex's 2% dining offer.

Does DoorDash or Uber Eats count as dining? Only if the charge is classified as a restaurant merchant. Check how your first order posts.

Do I earn 5% on purchases made before I activate? For Chase, yes, from October 1, as long as you activate by December 14. For Discover, no.

How much is the Chase Freedom Q4 bonus worth? At most $60 above the 1% base. Against a 2% card, the gain is $45 on grocery and $75 on Flex dining.