Citi Custom Cash Walmart

The Citi Custom Cash card is a popular choice for its flexible rewards program, allowing cardholders to earn 5% cash back on their top spending category each billing cycle, up to $500 spent. Many consumers wonder whether Citi Custom Cash Walmart purchases qualify for this lucrative rewards rate. This article provides a comprehensive guide to understanding how the Citi Custom Cash card interacts with Walmart, exploring strategies for maximizing rewards, potential limitations, and alternative credit card options for Walmart shoppers.

[Image: Person shopping at Walmart with Citi Custom Cash card in hand.]

Understanding the Citi Custom Cash Card

Core Features and Benefits

The Citi Custom Cash card offers a unique rewards structure. Here’s a breakdown of its key features:

• 5% Cash Back: Earn 5% cash back on your highest spending category each billing cycle, up to $500 spent.
• 1% Cash Back: Earn 1% cash back on all other purchases.
• No Annual Fee: Enjoy the benefits of the card without paying an annual fee.
• Introductory APR: Often includes an introductory 0% APR period for purchases and balance transfers.

The 5% category adjusts automatically each billing cycle based on where you spend the most. This flexibility makes it appealing to a wide range of consumers.

Eligible Spending Categories

The 5% cash back category can include a variety of spending areas, such as:

• Restaurants
• Gas Stations
• Grocery Stores
• Drugstores
• Home Improvement Stores
• Fitness Clubs
• Live Entertainment
• Select Travel
• Streaming Services
• Transit

Understanding these categories is crucial for maximizing your rewards. The next section explores how Walmart fits into this framework.

Citi Custom Cash at Walmart: What Qualifies?

Walmart Supercenters and Grocery Purchases

One of the most common questions is whether purchases at Walmart Supercenters qualify for the 5% cash back under the “Grocery Stores” category. Generally, purchases made at Walmart Supercenters do not qualify as grocery store purchases. This is because Walmart Supercenters are classified as general merchandise retailers rather than dedicated grocery stores by major credit card networks like Visa and Mastercard. However, there is an exception.

If your Walmart purchase codes specifically as a “grocery store” transaction (this is rare but possible in some locations or with certain Walmart payment systems), it could potentially trigger the 5% cash back. The determining factor is the merchant category code (MCC) used by Walmart when processing the transaction. [See also: Best Credit Cards for Groceries]

Walmart.com Purchases

Purchases made on Walmart.com generally do not qualify for the 5% cash back in a specific bonus category unless a temporary promotion is in place. Online purchases from large retailers like Walmart are typically categorized as general retail spending, earning only the standard 1% cash back.

Walmart Gas Stations

If you purchase gas at a Walmart gas station, the transaction will typically code as “gas station.” Therefore, if “gas station” is your top spending category for the billing cycle, you will earn 5% cash back on those purchases, up to the $500 limit.

Other Walmart Purchases: General Merchandise

Most other purchases at Walmart, such as clothing, electronics, home goods, and other general merchandise, will earn the standard 1% cash back. These purchases do not fall under any of the bonus categories offered by the Citi Custom Cash card unless a specific promotional offer is active.

Strategies for Maximizing Citi Custom Cash Rewards at Walmart

Prioritize Gas Purchases

If you frequently buy gas at Walmart gas stations, using your Citi Custom Cash card can be a smart move. Make sure that gas is indeed your highest spending category for that billing cycle to ensure you get the 5% cash back.

Monitor Spending Categories

Keep track of your spending throughout the billing cycle. If you realize that another category is nearing the $500 limit, you can adjust your spending to maximize your rewards. For example, if you’ve already spent $400 on restaurants, you might choose to use a different card for dining out to avoid exceeding the $500 limit on the Citi Custom Cash card.

Check for Limited-Time Promotions

Occasionally, Citi or Walmart may offer limited-time promotions that allow you to earn bonus rewards on Walmart purchases. Keep an eye out for these promotions and take advantage of them when available. These promotions are often advertised on the Citi website, through email, or directly on the Walmart website or app.

Potential Limitations and Considerations

$500 Spending Limit

The most significant limitation of the Citi Custom Cash card is the $500 spending limit on the 5% cash back category each billing cycle. Once you exceed this limit, you will only earn 1% cash back on further purchases in that category. This means that for larger shopping trips, you may want to consider using a different credit card with a higher rewards rate or no spending limits.

Merchant Category Codes (MCC)

As mentioned earlier, the MCC used by the merchant determines which category your purchase falls into. While rare, it is possible for a Walmart purchase to be misclassified. If you believe a transaction has been incorrectly categorized, you can contact Citi to dispute the categorization. However, be prepared to provide documentation to support your claim.

Returns and Adjustments

If you return an item purchased with your Citi Custom Cash card, the cash back you earned on that purchase will be deducted from your account. This is a standard practice with most rewards credit cards. Keep this in mind when making purchases, especially larger ones, as returns can impact your overall rewards earnings.

Alternative Credit Cards for Walmart Shoppers

Walmart Rewards Card

The Walmart Rewards Card, issued by Capital One, is specifically designed for Walmart shoppers. It offers:

• 5% cash back on purchases at Walmart.com and in the Walmart app.
• 2% cash back at Walmart stores and at gas stations (including Walmart and Murphy USA stations).
• 1% cash back on all other purchases.

This card is an excellent option for frequent Walmart shoppers who want to maximize their rewards on Walmart purchases. [See also: Capital One Walmart Rewards Card Review]

Chase Freedom Flex

The Chase Freedom Flex card offers rotating quarterly bonus categories that often include grocery stores or online retailers. If Walmart.com or grocery stores are a bonus category during a particular quarter, you can earn 5% cash back on those purchases, up to the quarterly spending limit (typically $1,500). This card also offers 1% unlimited cash back on all other purchases.

Discover it Cash Back

Similar to the Chase Freedom Flex, the Discover it Cash Back card features rotating quarterly bonus categories. These categories sometimes include grocery stores, Amazon.com, or other online retailers, which can be beneficial for Walmart shoppers. Discover also matches all the cash back you’ve earned at the end of your first year.

Amazon Prime Rewards Visa Signature Card

While not directly tied to Walmart, the Amazon Prime Rewards Visa Signature Card offers 5% cash back on purchases at Amazon.com and Whole Foods Market. If you frequently shop online or buy groceries, this card can be a valuable addition to your wallet. Consider this card if you find yourself splitting purchases between Walmart and Amazon.

Comparing Rewards Programs: Citi Custom Cash vs. Alternatives

Choosing the right credit card depends on your spending habits and priorities. Here’s a comparison table to help you decide:

Real-World Scenarios and Examples

Scenario 1: The Grocery Shopper

Sarah spends $400 per month on groceries. If she uses her Citi Custom Cash card exclusively at grocery stores, she will earn $20 in cash back (5% of $400). However, if she shops at Walmart Supercenters, she will only earn $4 (1% of $400) unless the purchase codes as a grocery store. In this case, the Walmart Rewards Card or a card with a rotating 5% category for groceries might be a better choice.

Scenario 2: The Gas Purchaser

John spends $200 per month on gas, primarily at Walmart gas stations. If gas is his top spending category, he will earn $10 in cash back (5% of $200) using the Citi Custom Cash card. This makes the Citi Custom Cash card a solid option for gas purchases at Walmart.

Scenario 3: The Online Shopper

Emily spends $300 per month on various items at Walmart.com. Using the Citi Custom Cash card, she will earn $3 in cash back (1% of $300). The Walmart Rewards Card, which offers 5% cash back on Walmart.com purchases, would be a more rewarding option in this scenario, earning her $15 in cash back.

Expert Opinions and Recommendations

Financial experts generally recommend evaluating your spending habits before choosing a credit card. If you are a frequent Walmart shopper, the Walmart Rewards Card is often the best choice due to its higher rewards rate on Walmart purchases. However, if your Walmart spending is limited to gas or if you prefer the flexibility of the Citi Custom Cash card’s rotating categories, it can still be a valuable option.

Consider diversifying your credit card portfolio to maximize rewards across different spending categories. For example, you might use the Citi Custom Cash card for gas and restaurants, the Walmart Rewards Card for Walmart.com purchases, and another card for groceries or travel.

Ethical and Legal Considerations

Credit card rewards programs are generally straightforward, but it’s essential to understand the terms and conditions of your card agreement. Be aware of spending limits, category restrictions, and potential fees. Avoid overspending to chase rewards, as interest charges can quickly negate any benefits you receive.

Always use credit cards responsibly and pay your bills on time to maintain a good credit score. A healthy credit score is crucial for obtaining favorable interest rates on loans, mortgages, and other financial products.

Key Takeaways

• The Citi Custom Cash card offers 5% cash back on your top spending category each billing cycle, up to $500 spent.
• Purchases at Walmart Supercenters generally do not qualify for the 5% cash back unless they code specifically as grocery store transactions.
• Walmart.com purchases typically earn 1% cash back, unless there’s a limited-time promotion.
• Walmart gas station purchases can earn 5% cash back if gas is your top spending category.
• Consider the Walmart Rewards Card for higher rewards on Walmart.com and in-store purchases.
• Monitor your spending categories to maximize your rewards and avoid exceeding the $500 limit.

Conclusion

While the Citi Custom Cash Walmart strategy might not unlock the full 5% potential across all purchases, understanding the nuances of merchant category codes and strategically using the card for gas can still yield valuable rewards. For dedicated Walmart shoppers, the Walmart Rewards Card often presents a more direct route to maximizing cash back. Ultimately, the best card for you depends on your individual spending habits and preferences. Evaluate your needs, compare the options, and choose the card that aligns best with your financial goals.

Ready to optimize your credit card rewards? Explore the [See also: Best Credit Cards for Cash Back Rewards] and find the perfect fit for your spending style today!