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Citi Custom Cash Walmart

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Citi Custom Cash Walmart

The Citi Custom Cash card offers a unique rewards structure, automatically adjusting to your top spending category each billing cycle. This feature raises a common question among consumers: how well does the Citi Custom Cash Walmart combination work? Understanding the nuances of this card’s rewards program and how it interacts with Walmart’s various shopping options is crucial for maximizing its benefits. This article delves into the specifics of using the Citi Custom Cash card at Walmart, exploring its rewards, limitations, and potential alternatives.

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

Understanding the Citi Custom Cash Card

Core Features and Benefits

The Citi Custom Cash card is designed to reward cardholders for their spending in their top eligible spending category each billing cycle. The card offers 5% cash back on purchases in your top spending category, up to $500 spent per billing cycle (then 1% thereafter). Other key features include:

  • Welcome Bonus: Often includes a sign-up bonus after meeting a spending requirement.
  • Purchase Protection: Coverage for purchases against damage or theft.
  • No Annual Fee: Making it an accessible option for many consumers.

The card’s automatic adjustment to your top spending category provides flexibility, catering to varying spending habits each month.

Eligible Spending Categories

The Citi Custom Cash card offers 5% cash back in several eligible spending categories. These include:

  • Restaurants
  • Gas Stations
  • Grocery Stores
  • Select Travel
  • Drugstores
  • Home Improvement Stores
  • Fitness Clubs
  • Live Entertainment
  • Movie Theaters

Understanding these categories is essential to strategically using the card and maximizing rewards. It is important to note that not all Walmart purchases will qualify for the 5% category bonus. Knowing where and how you spend at Walmart will dictate the rewards you receive.

Walmart as a Spending Category

Defining Walmart’s Retail Landscape

Walmart operates a diverse range of retail formats, including:

  • Walmart Supercenters: Large stores offering groceries, apparel, electronics, and more.
  • Walmart Discount Stores: Smaller stores with a focus on general merchandise.
  • Walmart Neighborhood Markets: Grocery-focused stores.
  • Walmart.com: Online retail platform.

Each format may be categorized differently by credit card companies, affecting the rewards earned.

How Walmart Purchases Are Categorized

The way a purchase is categorized depends on the merchant category code (MCC) assigned to the retailer by the payment network (Visa, Mastercard, etc.). Common MCCs for Walmart include:

  • 5310: Discount Stores
  • 5411: Grocery Stores (for Walmart Neighborhood Markets and grocery sections of Supercenters)
  • 5912: Drug Stores and Pharmacies (for pharmacy purchases)

The specific MCC used can vary by location and even by register within a store.

Citi Custom Cash and Walmart: Maximizing Rewards

Grocery Purchases at Walmart

If Walmart is categorized as a grocery store (MCC 5411), purchases made in that section of the store may qualify for the 5% cash back. This is most likely to occur at Walmart Neighborhood Markets or in the grocery section of a Supercenter. To maximize rewards:

  • Prioritize Grocery Purchases: Make Walmart your primary location for grocery shopping during the billing cycle.
  • Track Spending: Monitor your spending to ensure you stay within the $500 limit for the 5% category.

However, if Walmart is categorized as a discount store (MCC 5310), it will not qualify for the grocery store bonus.

General Merchandise and Other Purchases

Purchases of general merchandise, electronics, apparel, and other non-grocery items at Walmart typically fall under the “Discount Stores” category. This means they will earn the base rate of 1% cash back on the Citi Custom Cash card. Strategies to consider:

  • Use for Smaller Purchases: Use the card for smaller, everyday purchases at Walmart.
  • Consider Alternative Cards: For larger purchases, consider using a card that offers a higher flat rate on all purchases or specific bonuses at Walmart.

[Image: Close-up of a Citi Custom Cash card being used at a Walmart checkout counter]

Online Purchases at Walmart.com

Online purchases made at Walmart.com are generally categorized as “Discount Stores” or “Retail – Variety Stores.” Therefore, these purchases will typically earn the base rate of 1% cash back. Consider the following tips:

  • Check for Online Promotions: Look for specific promotions or discounts offered through the Citi portal or Walmart.com.
  • Compare with Other Cards: Compare the rewards earned with other cards that offer bonuses for online purchases.

Limitations and Considerations

$500 Spending Cap

The 5% cash back is capped at $500 spent in the top eligible category per billing cycle. Any spending beyond this limit earns only 1% cash back. This limitation requires careful tracking of spending to maximize rewards. Strategies to mitigate this:

  • Monitor Spending Regularly: Track your spending throughout the billing cycle to avoid exceeding the $500 limit.
  • Adjust Spending Habits: If you anticipate exceeding the limit, consider using a different card for the remainder of the billing cycle.

Merchant Category Code Variability

The MCC assigned to Walmart can vary by location and even by register. This variability can make it difficult to predict whether a purchase will qualify for the 5% cash back bonus. To address this:

  • Test Purchases: Make a small purchase and check the transaction details in your Citi account to see how it is categorized.
  • Contact Citi: If you are unsure about the categorization, contact Citi customer service for clarification.

Alternative Credit Cards for Walmart Purchases

Cards Offering Flat-Rate Rewards

If the Citi Custom Cash Walmart combination doesn’t yield optimal rewards, consider cards that offer a flat rate on all purchases. Examples include:

  • Citi Double Cash Card: Offers 2% cash back on all purchases (1% when you buy, 1% when you pay).
  • Chase Freedom Unlimited: Offers 1.5% cash back on all purchases.

These cards provide a consistent return, regardless of the merchant category.

Cards with Specific Walmart Bonuses

While less common, some cards may offer specific bonuses for Walmart purchases. Examples include:

  • Capital One Walmart Rewards Card: 5% back on Walmart.com and in the Walmart app, 2% back at Walmart stores and restaurants, and 1% everywhere else.

These cards are designed to reward frequent Walmart shoppers.

Amazon Prime Rewards Visa Signature Card

While not directly related to Walmart, the Amazon Prime Rewards Visa Signature Card offers 5% back on Amazon and Whole Foods purchases. If you frequently shop on Amazon, this card can be a valuable alternative. Benefits include:

  • 5% Cash Back: On Amazon and Whole Foods purchases.
  • 2% Cash Back: At restaurants and gas stations.
  • 1% Cash Back: On all other purchases.

Strategies for Optimizing Credit Card Rewards at Walmart

Combining Cards for Maximum Benefit

A strategic approach involves using multiple cards to maximize rewards based on the purchase category. For example:

  • Citi Custom Cash: For grocery purchases at Walmart Neighborhood Markets or Supercenters (if categorized as grocery).
  • Capital One Walmart Rewards Card: For Walmart.com and in-app purchases.
  • Flat-Rate Card: For general merchandise and other purchases at Walmart stores.

This approach requires careful planning and tracking of spending.

Utilizing Walmart Pay

Walmart Pay allows you to use your smartphone to pay at Walmart stores. By linking your preferred credit card to Walmart Pay, you can streamline the checkout process and potentially earn additional rewards. Consider these benefits:

  • Convenience: Faster and easier checkout experience.
  • Potential for Bonus Rewards: Some cards may offer bonus rewards for mobile wallet purchases.

However, ensure that the card linked to Walmart Pay aligns with the purchase category to maximize rewards.

[Image: Person using Walmart Pay with their smartphone at a checkout counter]

Analyzing Real-World Scenarios

Scenario 1: Weekly Grocery Shopping

A consumer spends $400 per month on groceries at Walmart Neighborhood Market. If the purchases are categorized as grocery (MCC 5411), the Citi Custom Cash card would earn 5% cash back, totaling $20 per month or $240 per year. This makes it a valuable option for grocery shopping.

Scenario 2: Purchasing Electronics Online

A consumer spends $600 on a new TV at Walmart.com. Since online purchases are typically categorized as “Discount Stores,” the Citi Custom Cash card would earn 1% cash back, totaling $6. In this case, a flat-rate card or a card with specific online purchase bonuses would be more beneficial.

Scenario 3: Mixed Purchases at a Supercenter

A consumer spends $200 on groceries and $300 on general merchandise at a Walmart Supercenter. If the grocery portion is categorized as grocery, it would earn 5% cash back ($10). The general merchandise portion would earn 1% cash back ($3). The total rewards would be $13. This highlights the importance of understanding how different purchases are categorized.

Key Takeaways

  • The Citi Custom Cash Walmart combination can be beneficial for grocery purchases if Walmart is categorized as a grocery store (MCC 5411).
  • General merchandise and online purchases at Walmart typically earn the base rate of 1% cash back.
  • The $500 spending cap on the 5% category requires careful tracking of spending.
  • Merchant category codes can vary by location and register, affecting the rewards earned.
  • Consider alternative cards, such as flat-rate cards or cards with specific Walmart bonuses, for non-grocery purchases.
  • Combining multiple cards can maximize rewards based on the purchase category.
  • Walmart Pay can streamline the checkout process and potentially earn additional rewards.

Conclusion

The Citi Custom Cash Walmart strategy can be rewarding, particularly for grocery purchases. However, understanding the nuances of merchant category codes, spending caps, and alternative card options is crucial. By strategically using the Citi Custom Cash card and considering other alternatives, consumers can optimize their credit card rewards and save money on their Walmart purchases. Explore your options and make informed decisions to maximize your savings. Consider applying for the Citi Custom Cash card today, and start earning rewards on your eligible purchases!

[See also: Best Credit Cards for Grocery Shopping, Maximize Credit Card Rewards, Understanding Merchant Category Codes]