AAA cash back

[Anonymous]

I was going to sign up for AAA, and noticed they have a credit card through BofA. The website says "up to 5% back on gas purchases at the pump".

It's that "up to" that concerns me. Anyone have this card, and know how the cash rebates work? I read through the terms and it just talks about the types of purchases that qualify.

[jaybird201]

Yes, you get 5% back on gas. BUT! Your rebate is limited to 2% of your total monthly retail purchases. So, if you use the card just for gas, you'll be limited to a 2% rebate.

So, spending $100 on gas in a month and $0 on other purchases will get you a $2 rebate.

However, if you spend $100 on gas in a month and $1000 in other purchases, you'll get a $5 rebate (5%) for the gas and a $10 rebate (1%) for the $1000. That's $15/$1100 which is 1.36% total cash back and therefore below the 2% maximum.

If you were able to do the math and calculate how much you needed to spend on gas and other purchases, you could get basically 2% back on everything to buy on the card.

Long story short, Discover More and AmEx TE blow this card out of the water.

[Anonymous]

Oh, believe me, I LUST after the Amex TE card. But I didn't think I could qualify for it. Discover I've stayed away from because I had a charge off with them right after college.

Thanks for the info and the numbers, I'll think about it some more.