Can Instacart shoppers earn credit card rewards on customer grocery orders?
Yes. Full-service Instacart shoppers pay for groceries with their own payment method and are reimbursed by Instacart. This means every grocery batch you shop generates credit card rewards on purchases you do not ultimately pay for out of pocket. A card earning 6% at supermarkets on $4,000 per month in batches generates $240 per month in pure rewards profit.
What is the best grocery rewards card for Instacart shoppers?
The Blue Cash Preferred from American Express is the best grocery card for Instacart shoppers, earning 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases. For high-volume shoppers who exceed that cap, pairing it with the Citi Custom Cash (5% auto on groceries, no fee) maximizes total grocery rewards across all batches.
Do Instacart grocery purchases code as supermarket transactions?
Yes, in most cases. When you shop at a traditional supermarket or grocery store for an Instacart batch, the transaction codes as a supermarket purchase and earns grocery category rewards. However, purchases at warehouse clubs like Costco or Sam's Club, or at stores like Walmart and Target, may not code as supermarkets and would earn the base rate instead.
Is the Blue Cash Preferred worth the $95 fee for Instacart shoppers?
Absolutely. If you shop just $200 per week in grocery batches at 6%, you earn $624 per year in grocery rewards alone. After the $95 annual fee (waived the first year), you still net $529 in profit. Most active Instacart shoppers far exceed $200 per week in grocery purchases, making this card extremely profitable for the gig.
Should Instacart shoppers use a business credit card?
A business card is not necessary for most Instacart shoppers since grocery purchases on personal cards already earn high rewards. However, shoppers who want to separate business expenses for tax purposes may benefit from a business card for gas, phone, and supply costs. The grocery spending itself is better on a personal card with 5-6% supermarket rewards.
What is the best card for gas between Instacart stores?
The Costco Anywhere Visa earns 4% at all gas stations, making it the best secondary card for Instacart shoppers who drive between stores. Pairing the Blue Cash Preferred for grocery batches with the Costco Visa for gas maximizes rewards on both of your biggest expense categories as a shopper.
How much can Instacart shoppers earn in credit card rewards per year?
An active Instacart shopper processing $3,000-$5,000 per month in grocery batches can earn $1,800-$3,600 per year in grocery rewards alone using a 6% card. Adding gas rewards from driving between stores brings the total to $2,000-$4,000 per year. This makes credit card rewards one of the most profitable aspects of Instacart shopping beyond tips and batch pay.
Are credit card rewards on Instacart batches taxable income?
Credit card rewards earned on purchases are generally not considered taxable income by the IRS because they are treated as rebates on spending. Since Instacart reimburses you for the grocery cost, the rewards are essentially free money. However, sign-up bonuses exceeding $600 may trigger a 1099-MISC. Consult a tax professional for guidance specific to your situation.
