@adelphi_sky wrote:
I'm in IT and I can almost guarantee you that AMEX is not inspecting each and every grocery receipt. Not only is it technically cost prohibitive, it opens up a lot of confusion as some products that are considered grocery by cardholders will be miscategorized, etc. AMEX doesn't want to have to argue every receipt. It is MUCH easier for them to be inclusive by including any product bought at a grocery store. Period. More than likely they have an agreement with grocery stores. Therefore any product goes. That's why Costco doesn't count. Costco has too many questionable products that it sells in addition to foods. It wouldn't fit their all-inclusive grocery store model. People would be able to buy TVs, couches, etc. getting 6% cash back.
I addition, I think it may be a privacy issue if a credit card company could inspect WHAT you bought in addition to where you bought it. There's got to be a privacy law against that.
A few corrections to the highlighted parts of your post. American Express will sometimes receive level 2/3 data from merchants which give them more information about a consumer's purchase. They're already geared up to mine/process this data and they even make it available to the end consumer. If you are an Amex customer, take a look at some of your transactions. You'll notice under "Additional information" that sometimes there will be an itemized list of products purchased for the transaction.
In terms of privacy, when you apply and agree to their terms you give up your rights to privacy.
Adding my DP: I purchase gift cards and other non-grocery items occasionally with my BCP from two grocery store chains here in Los Angeles. I've never had a problem with getting my cash back, the merchants I shop from do not appear to have level 2/3 reporting.
