Review: Kroger World Elite Mastercard

The Kroger World Elite Mastercard is a simple and flexible option for everyday spending. It was updated in late 2021 to add more features and cash back benefits. This was a big upgrade, considering how the old version was outclassed by competitors. The main draw of the Kroger card is now its 5% cash back on all mobile wallet purchases. We’ll explore the pros and cons here, since restrictions apply. Also note that different versions of the card exist with Kroger’s various affiliates (“Kroger Family of Companies Rewards Elite Mastercard”).

FEATURES AT A GLANCE

• No annual fee
• No foreign transaction fee
• 5% cash back on mobile wallet purchases (the first $3,000 spent each year)
• 3% cash back on dining/gas (the first $6,000 spent each year; feature only available on Kroger Family of Companies variant cards)
• 2% cash back at Kroger stores
• 1% cash back on everything else

SIGN UP BONUS

There isn’t a cash sign-up bonus for this card right now. The previous version sometimes had a $150 welcome bonus, so it might be worth waiting to see if this returns.

The variations (with extra cash back for dining/gas) do have a sign-up bonus. You can earn a $100 bonus after spending $500 within 90 days, a 20% return. If you’re considering the Kroger card, try one of these four:

• Harris Teeter Rewards World Elite Mastercard
• Mariano’s Rewards World Elite Mastercard
• Pick ‘n Save/Metro Market Rewards World Elite Mastercard
• Ralphs Rewards World Elite Mastercard

Some other variations don’t have a bonus and don’t include 3% back on dining/gas:

• Dillons Rewards World Elite Mastercard
• Fred Meyer Rewards World Elite Mastercard
• Fry’s Rewards World Elite Mastercard
• King Soopers Rewards World Elite Mastercard
• QFC Rewards World Elite Mastercard
• Smith’s Rewards World Elite Mastercard

It’s best to avoid the versions which don’t have a sign-up bonus.

OTHER BENEFITS OF THE KROGER CARD

• Mastercard World Elite benefits
• “Earn an additional $.25 off per gallon of fuel each time you redeem at least 100 fuel points at Kroger Fuel Centers for the first year and thereafter when you spend $6,000 in a calendar year.”

RESTRICTIONS AND CREDIT SCORE

Recommended credit score: 670+

“Eligible wallets” include Apple Pay, Google Pay, Samsung Pay, LG Pay, Fitbit Pay, and Garmin Pay. The terms and conditions don’t specifically include Kroger Pay, which is interesting. Overall, the credit card should be usable at any location which accepts mobile wallet payments. Consider your spending habits before applying for the Kroger card, since it won’t be usable at locations which don’t support mobile wallets.

The card is issued by U.S. Bank, so there may be regional restrictions. TBD. The bank doesn’t always accept applicants for U.S. Bank accounts if they’re from certain states like New York. The Kroger card may be an exception since it isn’t a “U.S. Bank card.” We’re looking into it.

Avoid Kroger’s family of gas stations if you won’t use the fuel discounts. The Kroger card doesn’t earn any points at Kroger-family fuel centers. The terms and conditions also state: “Fuel discount effective at participating fuel center locations. Not valid in LA, MO or where prohibited by law.“

MAXIMIZING REWARDS WITH THE KROGER CARD

Rewards are technically awarded as points instead of flat cash back, but the points are best redeemed for cash back anyway. There isn’t any special strategy to maximize points beyond the listed restrictions. You can get statement credits for every $10 (1,000 points) you earn, and points expire after 36 months.

Spending $3,000 per year ($250 per month) gives $150 cash back at 5%. People who want to truly maximize their cash back would prefer to open new cards for sign-up bonuses. $3,000 of spending typically gives a sign-up bonus of $300 to $500. But as a long-term everyday card, $150 a year without an annual fee is a decent proposition.

For 3% back on dining/gas expenses, if you max out the annual spending limit ($6,000) then you earn $180 cash back. This is a limit of about $500 per month. Better options exist for this category and 3% back is slightly low. It’s only good if you don’t have other credit cards for these categories.

Overall, combining the 3% and 5% categories: You’re limited to $9,000 in spending ($750 per month) which can earn up to $330 cash back if you reach those spending limits.

We aren’t sure yet if it’s possible to open multiple cards to bypass the annual spending limits. It may fall under “program misuse” as prohibited by the card’s terms of service. With 11 versions of this card though, it might be possible to have more than one.

ALTERNATIVES TO THE KROGER MASTERCARD

Citi Custom Cash Card (CCCC) is another flexible card which earns 5% cash back. It’s limited to one category per month, but has double Kroger’s spending limit, at $6,000 per year. it’s best for groceries and a few other categories.

Capital One SavorOne is the closest alternative to the old version of the Kroger card. It’s a Mastercard which earns an unlimited 3% cash back on groceries, dining, and more.

The U.S. Bank Altitude Reserve earns up to 4.5% cash back on mobile wallet purchases, and has other benefits, but there’s a hefty annual fee to consider. Unlimited 4.5% is usually better than limited 5% back, though it depends on personal habits.

For a general-use card, any of the best everyday cards will work. You’ll want to earn at least 2% cash back on all purchases. Options also exist for restaurant and gas category spending which can earn more than 3% cash back.

For 5% back on everything, some people prefer a workaround: using the Chase Ink Business Cash card to buy gift cards at office supply stores. Visa gift cards in particular can be as good as cash/debit. Staples and other stores have frequent promotions to reduce or eliminate the usual fees from buying Visa gift cards. The Ink Business Cash also has an annual limit of $25,000 instead of $3,000. However, a lot of people don’t want (or can’t get) business cards. Or they’d prefer a simple option for cash back instead of using a card to get a card to use as a card until they have to buy more cards but only if there aren’t fees for those cards (otherwise it’s less than 5% cash back) unless there’s another card they want.

CONCLUSION

No category restrictions on 5% cash back is a good deal. The downside is that mobile wallets aren’t accepted by every merchant, and the $3,000 spending limit is low. It’s equivalent to a $250 monthly limit. The most common places to use mobile wallets are grocery stores, gas stations, fast food places, and major pharmacies like CVS. Most people easily spend more than $250 a month on gas and groceries.

This isn’t a card for everyone, but it’s flexible enough to be worth considering, especially with zero fees. Low spenders will benefit the most. The Kroger card is also more versatile than 5% cards like the Discover It Cash Back.

We rate the Kroger card 4 out of 5 stars. ⭐⭐⭐⭐

Note: This review was last updated in February 2022. Details may have changed since then. Please do your own research where applicable, to ensure you’re getting the best deal. Or contact us directly to benefit from our personalized consulting services!