AMEX Blue Cash Question

[Anonymous]

Folks -

I've been looking at cash back cards... and have seen that the AMEX Blue Cash gets ranked quite highly.  The 5% and 1.5% after $6.5k spent do seem like good returns.  My biggest question is this...

What exactly qualifies for the 5%?  The say:

* "Everyday Purchases" are Eligible Purchases made at U.S. supermarkets, gas stations and drugstores, in each case that are not departments of superstores or warehouse clubs. "Eligible Purchases" are charges to your account for goods or services that have not been returned or otherwise credited to your account. Eligible Purchases do not include Finance Charges, fees, Cash Advances or other means of accessing your account, convenience checks, Balance Transfers, or the purchase of American Express®Travelers Cheques and American Express® Gift Cheques or other cash equivalents. Additional terms and conditions apply.

So - I'm assuming Sams & Wal-mart don't qualify... correct? And what exactly is a "supermarket".  Can any midwest folks tell me if Krogers qualifies for example? 

I'm just trying to figure out AMEX's categorization of places.

Thanks for any help you can provide!

Mary

[haulingthescoreup]

Hi, Mary --Yep, Kroger's counts as a supermarket. The categories are pretty much what they are. If you have to say to yourself, well, if I squint and look at it this way, and don't think too hard about it, it could fit so-and-so category, then it probably isn't.

So, big-chain grocery stores that don't also sell TV's and suitcase sets, gas stations that actually sell gas, and pharmacies where you pick up your prescriptions, plus shampoo, diapers, and kitchen remodeling magazines --these are what you're looking for.

When you factor in the $6500, try to run the numbers to figure how far beyond $6500 you have to get to counter the very low returns initially. When I looked at Blue Cash, I realized that in our empty-nest household, we would never run enough money through the card to make it work. But for those with kids still at home, and a lot of stuff going on, it can work out. Just realize that $6500 x 1.5% (or whatever it is) and another $6500 x 5% = a 3.25% rate, and that's only after you've spent $13K. I think. AmEx wears me out with their various rewards programs.

[Anonymous]

It's also worth noting that it's not Amex that categorizes merchants, but the merchants themselves.  If you read the fine print in your rewards agreement you should see a disclaimer that Amex is not responsible for merchants miscategorizing the type of establishment they are.

Having said that, I have never experienced a merchant being incorrectly categorized.  Whenever I have expected double Skymiles from a purchase made on my Amex Delta card due to the type of establishment, I have always received them.

[Anonymous]

Thank you both for your responses!  We use our credit card for *everything* so we push a lot of money through - but you're definitely right to consider that... because before the 1.5% kicks in the return isn't so great.  I'm glad to hear Krogers counts as a supermarket - that was my biggest concern as the 5% there will account for most of our 5% benefit.  So - sounds like Blue Cash would be good for us...

Now to decide whether or not the better returns are worth a new credit card and all the hassles associated with that.

[Anonymous]

Have you looked at the AMEX Blue Cash Calculator?  You can find in at--

https://www124.americanexpress.com/cards/blue/common/swfs/BlueCashCalculator.swf

[Anonymous]

Oooh!  Thanks!  Easier than doing the math myself. ;0) 

Looks like for me it comes out to about 1.9% over the course of the year.  Not too shabby.