If you’re eating out regularly, you probably know how the cost of meals can add up. But by using a dining rewards credit card, you could save some significant cash.
The cost of dining out rose 3.7% year over year in February 2025, according to the Bureau of Labor Statistics. Although a credit card alone won’t offset the rising prices of everyday essentials, or little treats, it can help stretch your dollar a little further.
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Depending on the card, you can earn rewards each time you dine out, order takeout or have meals delivered to your home. When choosing the right restaurant card, there’s more to consider than just cash-back rates. Many of these cards offer worthwhile welcome bonuses that can help cover a few meals. Some also offer perks like third-party delivery service subscriptions, which can lower your takeout bill, so be sure to check all the benefits before you choose.
For example, the American Express® Gold Card offers you $10 in Uber Cash each month, for a total of up to $120 per year when you add your Gold card to your Uber account. You can use this cash for Uber rides, as well as Uber Eats purchases in the U.S., as long as an Amex Card is selected as the payment method for your Uber or Uber Eats transaction to redeem the Amex Uber Cash benefit.
Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.
The American Express® Gold Card can be very rewarding for those who frequently dine out or order delivery.
How do restaurant rewards cards work?
Rewards cards focus on maximizing your rewards — typically points, cash back, miles or even cryptocurrency — on a specific type of spending. For example, while each dollar spent earns you points or cash back, grocery credit cards get you higher rewards on food and gas credit cards get you higher rewards from gas stations. Restaurant credit cards typically earn you the most points or cash back when you make purchases at dining establishments. Usually, the rewards rate comes in between 1 and 5 points per dollar spent (sometimes denoted as 1x points or 5x points) or a 1% to 5% cash-back rate.
These rewards can later be redeemed against specific purchases on your credit card billing statement or as a general statement credit. Note that these reward redemptions can’t usually be applied to your credit card’s minimum payment, so make sure you’re keeping up with the balance. You’ll also have to check your credit card’s fine print, as some cards require you to reach a minimum rewards threshold before you can redeem them.
Restaurant credit cards often come with other features that may help stretch your dining budget. Some offer special credits and perks toward delivery services, while others offer welcome bonuses that can cover some of your meals.
Pros and cons of using a dining credit card
✅Pros:
- Earn rewards for a potentially frequent expense.
- Some credit cards come with perks like annual credits to food delivery services.
- Turn your rewards into more trips to your favorite restaurants.
❌Cons:
- Rewards could entice you to overspend.
- If you can’t pay off what you spend right away, you’ll have to pay interest charges.
What qualifies as ‘dining’ for a restaurant card?
For the most part, the dining category for popular rewards credit cards is broad — and the definition can vary across card issuers. For example, Chase defines eligible restaurant and dining rewards as purchases with merchants whose “primary business is sit-down or eat-in dining, including fast food restaurants and fine dining establishments.” On the other hand, Capital One defines its dining category simply as “purchases at restaurants, cafes, bars, lounges, fast-food chains and bakeries.”
Many issuers rely on the merchant category code, or MCC — a four-digit code that determines the type of purchase and subsequent rewards rate. Chase, for example, does not include merchants who sell food and drinks located within facilities like sports stadiums, hotels and casinos, theme parks, grocery and department stores in the restaurant or dining category — unless the merchant sets up these purchases, so they’re classified in a restaurant category.
As a result, eligible purchases can vary slightly based on your card issuer and where you’re dining out. If you’re unsure if your purchases qualify as dining, review the credit card issuer’s terms and conditions before applying so you know if it’s the right card for you.
Does ordering delivery and takeout still earn you points with a restaurant card?
Generally speaking, you’ll earn bonus rewards on dining purchases even when you have food delivered to your door. If you order pizza from Dominos, for example, you’ll earn bonus rewards on dining just as you would if you sat down to order pizza for a sit-down meal.
Takeout purchases will generally always qualify as restaurant purchases regardless of your card issuer, provided you pay for your food within an eligible establishment upon pickup. That’s because your credit card issuer has no way of knowing whether you ate at the restaurant or brought it home.
But this can also depend on how the merchant codes the purchase. If you order delivery and the transaction is coded as a restaurant purchase, it should count toward your dining rewards. If not, you may not earn your card’s restaurant rewards rate.
For example, you may not earn rewards at a Starbucks that’s inside a Target, because the purchase might be coded as coming from Target rather than Starbucks.
In addition, many rewards credit cards count food delivery services such as DoorDash and GrubHub as dining purchases. Quite a few of the best credit cards for dining also offer specific food delivery benefits and statement credit offers for services such as DoorDash and GrubHub.
Are rewards the same for all restaurant cards?
The best credit cards for dining all offer bonus points at restaurants, but their rewards rates vary widely.
Before you apply for a restaurant credit card, compare all the benefits and features of the cards you’re considering. Look at other rewards categories, added benefits and fees that may affect the value you’ll get from the card. Be sure to also review the card’s rewards program so you know how you can redeem your points.
Certain cards are more travel-focused than others. For example, American Express and Chase let you transfer points to travel partners, where they could be worth more.
How to maximize your points by dining and ordering takeout
Cards with restaurant rewards are most valuable for those who already spend a significant amount on dining out each month. The best way to maximize your rewards is to make these purchases with a card that will earn you the most points or cash back on dining. Here are a few more ways to ensure you’re getting the best value on your dining cards:
- Use rewards cards strategically as you spend. Each time you dine out at a restaurant or pay for takeout, make sure you’re using the credit card that will give you the most bonus points on your purchase.
- Connect your rewards credit card food delivery apps. Once you sign up for a credit card that earns bonus rewards on dining, make it your preferred payment method on any food delivery apps you use. Examples include your DoorDash account, your Uber Eats account, or any restaurant apps you order from regularly. You can also register your card with your favorite airline’s dining program.
- Pay for dining purchases whenever you can. You can earn more rewards per meal if you offer to use your card as payment when you dine out with family or friends. Just remember to have the other diners repay you using cash or a money transfer app like Venmo or Zelle.
But don’t overspend just to earn free meals or other rewards. While perks are nice, if you spend outside your budget and can’t repay your balance in full, the interest charges may offset any rewards you earn.
How to choose the right dining and restaurant card
Like any new rewards card, your spending habits and budget can help you decide on the right card for dining and restaurants.
Before you choose a credit card for dining out, take time to review your budget and the expenses you already charge to a credit card. If you spend a lot on dining, it might make sense to open a card with an annual fee — as long as you can offset this fee with rewards and perks from your regular spending habits. Similarly, if your spending isn’t only focused on dining, but you also spend a lot in categories like groceries or travel, you might want to prioritize cards that offer more points on these types of purchases, too.
After comparing long-term value via rewards rates and benefits, you may also want to consider each card’s welcome offer or welcome bonus. These offers can boost your first-year value with hundreds of dollars worth of points or cash back after you meet a spending threshold.
Finally, make sure your credit score is in good standing and within the recommended range for the card you’re considering. Practicing good credit habits like paying your balance in full and on time each month can help you maintain good credit to qualify for the best credit cards available.
FAQs
How do restaurants process tips on credit cards?
Typically, cardholders input a tip amount for servers or bartenders after the bill is already charged to the card. The charge is later modified to reflect the tip before it’s processed with the credit card issuer. This often happens before the restaurant closes for the night. Still, you may see the initial amount on your credit card account until the adjustment processes, which could take several days.
Can I get cash back if I purchase restaurant gift cards?
Each credit card issuer has its own set of rules surrounding gift card purchases — some credit cards allow you to earn cash back on gift cards while others don’t. It also depends on how the sale is categorized by the merchant, which generally assigns a code to the purchase type. Credit cards often use these codes to determine how much cash back to award you. If the purchase is labeled as a gift card purchase rather than a food and beverage purchase, it’s possible you won’t earn the restaurant rewards rate. Check the fine print of your credit card agreement to understand the terms.
Can you earn rewards at bars with restaurant and dining cards?
Each credit card comes with different rules about what you can and cannot earn elevated rewards for. For example, some issuers only offer elevated rewards on money spent at actual restaurants, while others include takeout and delivery. Although bars are typically classified as restaurants, there may be a few instances where they are not.
Also, some cards may allow you to earn points at bars if they are also dining establishments, while others may allow elevated rewards at all establishments regardless of whether they serve food.
This article includes some material that was previously published on NextAdvisor, a CNET Money sister site that was also owned by Red Ventures and which has merged with CNET Money. It has been edited and updated by CNET Money editors.
