Supermarket Credit Cards

Earn reward points as you spend and enjoy exclusive perks with your favourite supermarket.

If you regularly pay for your groceries on plastic, a supermarket credit card could help reward every $1 you spend on your weekly groceries. These cards are usually linked with a major supermarket or retailer and offer rewards programs, discounts and perks for loyal customers. In Australia, you can find retail credit cards from supermarket giants such as Coles, Woolworths and big brands like David Jones.

Here you can learn how these supermarket credit cards work, the features you can expect and the benefits you should consider when choosing the right card for you.

Compare Supermarket credit cards

Rates last updated September 16th, 2019
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee Product Description
American Express Platinum Edge Credit Card
20.74% p.a.
0% p.a. for 12 months with 1% balance transfer fee
$195 p.a.
Receive a yearly $200 Travel Credit and complimentary domestic and international travel insurance, plus 0% p.a. for 12 months on balance transfers.
David Jones American Express Card
20.74% p.a.
$99 p.a.
The AMEX David Jones Credit Card gives you points for supermarket purchases. Earn 3 points per $1 spent at all the major supermarkets.
David Jones American Express Platinum Card
20.74% p.a.
$295 p.a.
DJ's shoppers and Qantas travellers earn 30,000 bonus Membership Rewards points or 15,000 Qantas Points on eligible spend.

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How do supermarket credit cards work?

Australian supermarkets, such as Woolworths and Coles, have partnered with banks to offer these credit card products. Just like a regular card, these products come with a credit limit which you can use to make transactions on a line of credit. If you don’t pay your balance in full by the end of the statement period, any remaining balances will collect the purchase interest rate. Depending on the card, you could also pay an annual fee, which generally ranges from $0 to $100.

These cards are also regularly linked with loyalty programs such as Coles flybuys or Woolworths Rewards. This means you can earn points with the partnered rewards program for every $1 you spend on eligible transactions. You can usually redeem these points for money off your shop at the checkout, exchange them for partnered frequent flyer points and other rewards including travel, gift cards and merchandise.

Other credit cards that offer supermarket and retail perks

You can also find credit cards that will reward your grocery shop beyond supermarket credit cards. Some rewards credit cards offer more points per $1 when you spend with major supermarkets. For example, the American Express Platinum Edge credit card earns up to 3 points per $1 spent on purchases at major supermarkets (including Coles and Woolworths). Whereas you’ll only earn 3 points per $1 spent at major petrol stations and 1 point per $1 spent on most other purchases.

These cards could be useful if you want to reward your grocery spend but don’t necessarily want to use a supermarket credit card.

How to compare supermarket credit cards

Woman holding a pushcart inside a supermarket

When you’re deciding which supermarket credit card is right for you, consider the following factors:

  • Partnered supermarket. There’s no point signing up for a rewards credit card if it’s linked to a supermarket that you don’t usually shop at. If you shop at more than one supermarket, consider your shopping habits and choose the one that will help maximise your rewards.
  • Rewards program. As well as the rewards program itself, you should compare how many points you can earn per $1 and what you can redeem with the rewards. You might also want to compare rewards programs based on the frequent flyer points potential it offers. For example, you can exchange your Coles flybuys for Velocity Points and transfer your Woolworths Rewards to Qantas Points. Some cards only allow you to earn points with the linked supermarket and its reward program partners, so you should make sure that these options suit your spending habits.
  • Discounts and other perks. These credit cards often come with extra perks, including free shipping for online orders, shopping vouchers, cashback offers and more. Extra features can help you justify the card costs, so keep this in mind when comparing.
  • Annual fee. Annual fees can be as low as $0 p.a. or up to around $100 p.a. (although fees will vary between cards). Cards with lower fees will generally have less competitive features (such as lower points earn rates) than cards with higher fees.
  • Purchase interest rate. Some supermarket credit cards have lower interest rates around 12.99% p.a. on purchases, while others are above 20% p.a. If you often carry a balance from month to month, you’ll want to go for a card with a lower purchase rate. If you regularly pay your balance in full each statement period, you should consider how many interest-free days are on offer.
  • Eligibility requirements. Like all credit cards, supermarket credit cards also come with specific eligibility requirements that you’ll need to meet to receive approval. These usually include a minimum annual income, good credit history and permanent Australian residency or Australian citizenship. As rejected credit card applications can hurt your credit score, make sure you meet the eligibility criteria and have the necessary documents on hand before you apply.

Comparing Coles and Woolworths Money credit cards

To give you an idea of how you can compare the above factors between banks, we’ve looked at details for Coles and Woolworths credit cards below.

Card Annual fee Purchase rate Rewards earn rate Extra features
Woolworths Everyday Platinum credit card $0 for the first year and $49 thereafter 19.99% p.a. Earn 3 Woolworths Rewards points for every dollar spent on Woolworths Select and Woolworths brand range of products. Earn 2 points for every dollar spent on items you buy at Woolworths supermarkets, BWS, Dan Murphy’s and more. For all other eligible purchases, earn 1 point for every dollar you spend.
  • Platinum concierge service
  • 10% off your first in-store or online shop at Woolworths on select dates each month when you scan or enter the barcode on the back of your credit card and pay with your Woolworths Everyday Platinum credit card
  • 0% p.a. for 14 months on balance transfers if you apply by 31 October 2019
Woolworths Qantas Platinum credit card $99 for the first year and then $169 p.a. onwards 20.49% p.a. 2 flybuys points per $1 spent on eligible purchases
  • 0% p.a. for 6 months on balance transfers
Coles No Annual Fee Mastercard $0 19.99% p.a. Earn flybuys 0.5 points per $1 you spent on eligible purchases.
  • $10 off at the checkout every time you redeem 2,000 flybuys points
Coles Rewards Mastercard $99 19.99% p.a. 2 flybuys points per $1 spent on eligible purchases
  • No international transaction fee on purchases
  • $10 off at the checkout every time you redeem 2,000 flybuys points
  • 0% p.a. for 6 months on balance transfers
Coles Low Rate Mastercard $58 12.99% p.a. 0.5 flybuys points for every $1 spent at Coles supermarkets
  • $10 off at the checkout every time you redeem 2,000 flybuys points

As you can see, both Woolworths and Coles offer credit cards with low fees or interest rates, as well as cards that offer more points per $1 spent and premium features. Consider how you’re going to use the card, your points goals and what you can afford to determine which one is right for you.

Supermarket credit cards can be a great way to reward yourself every time you’re buying groceries at the checkout. However, as there are many types of rewards credit cards on the market, make sure to compare your options before you decide on a card.

Picture: Shutterstock

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Credit Cards Comparison

Rates last updated September 16th, 2019
Name Product Purchase rate (p.a.) Balance transfer rate Annual fee Product Description
Citi Clear Platinum Credit Card
12.99% p.a.
0% p.a. for 14 months
$0 p.a. annual fee for the first year ($99 p.a. thereafter)
Offers a long-term balance transfer and $0 first year annual fee. Plus, insurance covers and Citibank Dining Program perks. Ends 30 September 2019.
Virgin Australia Velocity Flyer Card - Annual Fee Offer
20.74% p.a.
0% p.a. for 18 months
$50 p.a.
Save with an ongoing $50 annual fee and 0% balance transfer offer. Plus, the ability to earn up to 30,000 bonus Velocity Points in the first 3 months.
NAB Qantas Rewards Signature Card
19.99% p.a.
0% p.a. for 6 months with 2% balance transfer fee
$295 p.a. annual fee for the first year ($395 p.a. thereafter)
Collect up to 120,000 bonus Qantas Points. Get 90,000 when you spend $3,000 on eligible purchases in the first 60 days and 30,000 after 12 months.
Latitude Low Rate Mastercard
11.99% p.a.
$69 p.a.
Offers a competitively low interest rate and annual fee, plus up to 55 interest-free days on purchases.

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* The credit card offers compared on this page are chosen from a range of credit cards has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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