Why your grocery card doesn't work at Target
Card networks file each store under a merchant category code, and Target's is typically 5310, discount stores. Grocery bonuses pay on 5411, supermarkets. Issuers that define their grocery category in writing exclude Target by name: American Express lists superstores "e.g., Target, Walmart" as not counting, and Chase excludes "larger stores that sell a wide variety of goods and groceries like Walmart and Target."
So the Amex Gold's 4x at supermarkets is 1x at Target, and the Blue Cash Preferred's 6% is 1%. The table above already scores every card that way, which is why flat-rate cards fill the top of it. Some cardholders report individual Target stores coding as grocery on a Visa, but a store that does it today can stop, so plan on the base rate.
The math on $3,000 a year
A household that spends $250 a month at Target, about $3,000 a year, gets:
| Card | Return | Per year |
|---|---|---|
| Target Circle Card | 5% off | $150 |
| Best flat-rate card in the table (3%) | 3% | $90 |
| No-fee 2% card | 2% | $60 |
The Circle Card is worth $90 a year over a 2% card at that spend, with no fee and no categories to track. It loses only on what it excludes, and on purchases you would rather make on a card with stronger purchase protection.
Credit, debit or Mastercard
All three take the same 5% at Target. Pick by what you want the card to do elsewhere:
- Debit if you want the discount without opening a credit line.
- Credit if you'd rather pay a monthly statement and keep the purchase off your bank balance until then.
- Mastercard only if you want one card for Target and everyday spending. Outside Target it pays 2% on dining and gas and 1% on the rest, so a 2% card beats it on most purchases.
If you already carry a card that wins elsewhere, the Circle Card stays in the drawer for Target runs and costs nothing to hold.