Kroger Credit Card Is Going Away: What Cardholders Lose

The Kroger Rewards Mastercard will soon check out of cardholders’ wallets for good, and those who used Kroger Pay to maximize rewards could see their cash back drop from 5% to 2%.

U.S. Bank shared news of the upcoming change in a short message on its website, advising Kroger co-brand cardholders that their accounts will transition to the U.S. Bank Smartly Visa card.

U.S. Bank issues the Kroger card and will retain ownership of the accounts while continuing to handle servicing and manage its cardholder relationships.

The reaction hasn’t been overwhelmingly positive on at least one online forum, where cardholders learned that perhaps their favorite benefit will soon share the fate of beloved supermarket treats of yesteryear such as Butterfinger BB’s and Crystal Pepsi.

The Kroger Rewards Mastercard offered 5% cash back on the first $3,000 in eligible Kroger Pay purchases each calendar year and 2% thereafter.

Mobile-wallet purchases came with a similar deal: 5% cash back on the first $3,000 spent each calendar year, followed by 1% after cardholders reached that separate limit.

But those perks aren’t available with the U.S. Bank Smartly Visa Signature Card, which doesn’t offer any Kroger-specific benefits, according to an article from ABC-affiliated television station WCPO 9 Cincinnati.

The card update may not have the reach of other large-scale credit card program changes because it primarily affects people who shop at Kroger. Still, that isn’t a small group: Kroger operates 1,229 namesake grocery stores across 16 states.

And its broader corporate footprint could soon look different.

Kroger spent part of the summer looking to expand, agreeing to acquire Giant Eagle, Inc., which operates 197 supermarkets and 11 standalone pharmacies across Indiana, Maryland, Ohio, Pennsylvania, and West Virginia. The transaction is expected to close in 2027, subject to regulatory approval and other customary conditions.

But Kroger is also scaling back in some markets. The company previously announced plans to close approximately 60 underperforming stores over an 18-month period in a bid to improve companywide efficiency.

U.S. Bank has sent cardholders information about the changes and expects to complete the transition this fall.

Other than keeping an eye on the mailbox, Kroger cardholders won’t have to do anything to receive the U.S. Bank Smartly Visa card. Their current card will keep working until the replacement arrives, and they can begin using the new one as soon as they activate it.

Cardholders will receive a new account number and expiration date on their Smartly card, which also comes with a different benefits program. They’ll want to carefully review the new perks to understand how to get the most from the replacement card.

Along with losing Kroger-specific rewards, cardholders will earn cash back on everyday spending at a different rate.

The Smartly card offers a silver lining. While the Kroger card paid 1% cash back on purchases outside its stores, the replacement card doubles that rate to 2% when rewards are redeemed into an eligible U.S. Bank deposit account or as a statement credit.

WCPO reports that cardholders can also earn 3% back on gas and grocery purchases during their first 12 months with the card.

New Smartly cardholders can earn 3% cash back on purchases of gas and groceries during the first 12 months of owning the card.

Consumers may feel the sting of losing Kroger-specific benefits. But the extra cash back they can earn on purchases elsewhere may help make up for that loss over time.

Cardholders will also lose the ability to save five cents per gallon at Kroger Fuel Centers when they activate their new U.S. Bank card.

Though many parts of the rewards program are changing, other features will stay the same. One thing that isn’t changing is the annual fee: Neither the Kroger card nor the Smartly card has one.

Cardholders won’t have to start from scratch, either. Their existing credit limits, balances, and APRs will automatically move to the new card, along with any rewards they’ve already earned.

U.S. Bank posted an FAQ on its website for cardholders who have further questions about the transition. A Kroger spokesperson told WCPO that people can also refer to the letter they received or call the phone number on the back of their card for more information.