【2020.5 Update 2】Alipay has started supporting in-store QR-code payments with foreign credit cards! Current DPs show these transactions coding as groceries, with no fee. See:
【2020.5 Update】According to a data point from reader Blake Cai, using CSR through Alipay/Taobao can code as Grocery and trigger 5x UR. Click here for details. If you need to use Taobao/Tmall, Chase’s temporary pandemic-era grocery bonus is worth trying, especially for readers who have already returned to China.
Some supermarkets and wholesale clubs in China do accept US credit cards. We also know that several US banks launched temporary bonus rewards on grocery or dining purchases during the pandemic. I imagine many readers have already gone back to China. If you can’t use these benefits in the US, why not use them in mainland China, Taiwan, Hong Kong, Macau, or other places outside the US?
Here’s a quick summary:
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Bonus Grocery Rewards
US grocery bonus categories are basically a feast for MS enthusiasts. In China, there’s no real MS angle here, but as long as you can use the benefit and your cash flow is fine, it should still come out ahead.
AMEX: No
AMEX has explicitly stated that only US supermarkets qualify for bonus rewards. In practice, not many people have tested this anyway, because there aren’t many places that take Amex directly. And when routed through WeChat Pay, AMEX usually doesn’t recognize the correct category.
Chase/Citi: Yes
KUKU’s current impression is that Visa/Mastercard credit cards generally work. In the past, Chase did not count Superstores (Walmart/Target) or Wholesale Clubs as grocery purchases. But for this promotion, Chase additionally allows certain Walmart/Target purchases to earn bonus points as well (Freedom does not). Using Chase and Citi as examples, here are a few cards worth mentioning:
Bonus rewards on grocery purchases through June 30, capped at the first $1,500 each month:
No foreign transaction fee (FTF):
- Chase Sapphire Reserve: 5x UR
- Chase Sapphire Preferred: 3x UR
- Chase Marriott cards: 6x Marriott
- Chase United Club: 5x UA
- Chase United Explorer: 3x UA
- Chase BA cards: 3x BA
- Chase Southwest cards: 3x WN
- Chase IHG: 3x IHG
- Chase Hyatt: 3x Hyatt
- Citi Prestige: during the pandemic, the travel credit can be used for grocery purchases (only at supermarkets other than Walmart/Target/Wholesale Clubs)
With FTF (3%):
- Chase Disney: 3%
- Chase Freedom: 5x UR (only at supermarkets other than Walmart/Target/Wholesale Clubs)
Where You Can Trigger Grocery Bonus Rewards
Since grocery bonuses are the most useful and generally offer the highest return, here’s a separate summary of places in China where Chase/Citi may code the purchase as groceries.
Online: Alipay-type purchases
Through Alipay, purchases coded as Ali*taobao.com are counted by Chase as Groceries. Keep in mind that Alipay charges a 3% foreign payment fee (FTF) plus a 3% Taobao/Alipay-side fee. Current channels that code as Ali*taobao.com and allow payment with US Visa/Mastercard credit cards include:
- Paying Chinese mobile phone bills through Alipay
- Shopping on Taobao and Tmall (including World Taobao US version); you must be redirected to Alipay for checkout, otherwise it will code as online shopping
It’s best to try a small transaction first before scaling up, since the category might code as Shopping.
At this point, what we know is that most orders routed through Alipay ultimately code as groceries, while placing an order directly on Taobao codes as online shopping and does not trigger the bonus.
For more on using US credit cards with Alipay, see: Guide to Using Alipay with US Credit Cards
CSR is the best fit for these purchases: no FTF, 5x UR back, and only the 3% Alipay-side fee to pay (+ 5x UR 3%). UA Explorer and Hyatt are also decent options. Here is the DP (from reader Blake Cai):
In Person: Supermarkets and Big-Box/Wholesale Purchases
Here are the currently known supermarkets and large retail stores in mainland China, Hong Kong, Taiwan, and Macau that accept Visa/Mastercard:
- Alipay in-store QR payments! Current DPs show they code as groceries, with no fee. See the full Alipay guide!
- Some international chain supermarkets or very large supermarkets in mainland China, such as Carrefour and Walmart
- Many local supermarkets in Hong Kong, Taiwan, and Macau
- Shanghai Costco accepts Visa, and the category codes directly as Groceries, so it can trigger Chase’s pandemic grocery bonus
- Costco Taiwan currently accepts only Costco Visa co-branded cards worldwide; other credit cards are not accepted, so bonus rewards cannot be triggered there for now
- Sam's Club locations can accept Visa/Mastercard; my guess is that they code as Groceries and should trigger Chase’s pandemic grocery bonus
- Many supermarkets accept Visa/Mastercard/Amex/Discover via WeChat Pay, but those transactions code as dining, so they do not trigger grocery bonuses
Here’s the DP (from Feicha). This DP also suggests that if you use the Citi Costco co-branded card at Shanghai Costco, it will likely earn 2x cashback as well. And since Chase codes it as Groceries, regular Chase cards with grocery bonus categories should probably continue to earn the bonus there too.
Dining Credits
AMEX: No
Unfortunately, for the dining credits on Marriott and Hilton co-branded cards (originally hotel credits), AMEX clearly states they can only be used at US restaurants or US takeout/delivery services. Starbucks China may be a special exception, so interested readers can test it. AMEX Gold earns 4x on dining worldwide, and AMEX Green earns 3x on dining worldwide. They’re hard to use in China because they generally require direct card acceptance, but they’re still solid whenever you can use them.
Chase/Citi: Yes
Many Chase cards already offer bonus rewards on dining, such as CSP/CSR/Hyatt/Marriott, so I won’t list them all again. Here’s one useful example:
- Citi Prestige: during the pandemic, the travel credit can be used for dining purchases (WeChat Pay works for almost all of them)
The Citi Prestige credit was already fairly easy to use, so this isn’t a huge standout on its own. But for long-term holders, continually earning 5x TYP through WeChat is pretty strong.
Bottom Line
At the moment, Chase/Citi grocery and dining bonus categories or statement credits are the easiest to use in mainland China, Taiwan, Hong Kong, and Macau. CSR 5x UR is especially powerful, though unfortunately capped. If your family members in those places have authorized-user cards under your account, they can use those cards for purchases. Costco/Sam's Club memberships are valid globally.
At the same time, we noticed that Shanghai Costco codes directly as Groceries, which means grocery bonus categories on Visa/Mastercard credit cards should generally work there. As of now, there don’t seem to be many US Visa/Mastercard cards with grocery bonuses and no FTF, apart from temporary pandemic promotions.
As for WeChat Pay, because the risk-control system can be tricky, it’s still best to avoid using authorized-user cards there if possible.
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