No, Target is generally not categorized as a grocery store for the purpose of earning grocery rewards with Discover Card.
Discover Card and Grocery Rewards Explained
When it comes to earning cash back or rewards points, credit card issuers like Discover define specific merchant categories that qualify for bonuses. While Target sells groceries, Discover's terms and conditions explicitly exclude certain types of retailers, including Target, from their grocery rewards category.
Why Target Doesn't Qualify for Grocery Rewards
Credit card companies classify merchants using a system called Merchant Category Codes (MCCs). These codes are assigned by payment networks (like Visa, Mastercard, Discover, American Express) based on the primary business of a merchant. Even if a store sells a variety of goods, including groceries, its main business classification determines how purchases made there are categorized for rewards.
For Discover it Cash Back cardholders, purchases made at certain large retailers and specific types of stores are not eligible for grocery rewards. These typically include:
- Walmart
- Target
- Convenience stores
- Wholesale clubs (e.g., Costco, Sam's Club)
- Discount stores
- Supercenters
This means that even if you buy a full cart of groceries at Target, those purchases will not count towards any bonus grocery rewards that Discover might offer.
What Typically Counts as a Grocery Store?
For most credit card rewards programs, including Discover when it offers grocery bonuses, the term "grocery store" usually refers to traditional supermarkets and smaller, dedicated food retailers. These are merchants whose primary business is selling food and beverage products.
Examples of merchants that commonly qualify as grocery stores for rewards include:
- Traditional Supermarkets: Stores like Kroger, Safeway, Publix, and Albertsons.
- Specialty Food Stores: Retailers focused on specific food items, such as Whole Foods Market or Trader Joe's.
- Local Grocers: Smaller, independent grocery stores and delicatessens.
It's always advisable to check the specific terms and conditions for your Discover card or any credit card reward program, as eligible categories can sometimes vary by card product or promotional period.
Maximizing Your Discover Cash Back
Understanding how Discover categorizes merchants can help you optimize your rewards strategy. While Target might not count for grocery bonuses, Discover offers other ways to earn cash back:
- Quarterly 5% Cash Back Categories: Discover often features rotating bonus categories that offer 5% cash back on everyday purchases at different types of merchants each quarter (e.g., gas stations, restaurants, Amazon.com, wholesale clubs, specific retail stores). Check Discover's cash back calendar to see if Target or similar general merchandise stores are included in a future bonus category.
- Discover Deals: This program offers additional discounts and cash back at various online and in-store merchants, which can include Target, when activated through your Discover account.
- Everyday Purchases: All purchases not falling into bonus categories still earn unlimited 1% cash back with the Discover it Cash Back card.
By being aware of how your credit card defines merchant categories, you can make informed decisions about where to shop to maximize your cash back earnings.
