Recently, Citibank announced that its dividend reward credit cards would stop paying 5% back on everyday purchases made at supermarkets, drugstores and gas stations as of mid-October, and instead only rebate 2%.
Rebate card junkies might then have gotten their hopes up after seeing this American Express Blue Cash Card application promising “up to 5% cash back.”
Not so fast.
*MOUSE PRINT:
Translation: You will only earn 5% back on purchases at supermarkets, drugstores, and gas stations (“everyday purchases”) after you have first put $6500 of purchases on the card each year, and the 5% rebate will only apply to subsequent “everyday” purchases.
The way I interpret the mouseprint is that the first $6500 must solely be in “Eligible purchases” (and not from a wholesale buying club).
So if one were to spend $105 a week for “Eligible purchase, they would qualify in week 52 of the year for the 5% ‘reward” – Happy New Year!.
Lawrence…
Here is the wording from AMEX’s website:
“*For the first $6,500 of annual purchases, the rebate is 1% for Everyday Purchases and 0.50% for all other Eligible purchases; for Eligible purchases of $6500.01 or more, the rebate is 5% for Everyday Purchases and 1.5% for all other eligible purchases. “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.”
So the 5% only kicks in for purchases AFTER $6500 has been spent on the card, and then only for subsequent purchases of gas, drugstore items, groceries.
Bastards.
My AAA card gives me 5% back on fuel purchases. That works pretty well, allthough I’ve never actually calculated if it’s exact.
Was happy to hear though that the Senate has held a hearing on credit card non sense.
This is clearly deceptive because it is mathematically impossible for the average cash back percentage to ever be 5%. Advertising a peak rate in this manner is solely designed to confuse the consumer as to the actual amount of savings. Even if you spent $13,000 solely on “everyday purchases” (a term that is deceptive subterfuge all by itself), your average cash back would only be 3.5%.
I am pissed at the Citibank thing; their card was actually straight forward either 1% or 5%.
I have this american express cash back card also; it is okay once you realize the complicated rules. The trick is to not make your “eligible purchases” until you are over the $6500 limit. Oh yeah ans spend like crazy (not something I advocate but this card is mainly used on the wife’s business trips so it is not really our money).
I spent an hour on the AmEx website to figure that out. Blue is an absolute rip-off unless you spend tons of money and put it all on that one card. I ended up getting the Costco AmEx. As long as you have an active Costco membership, there is no annual fee. You get a (smaller) percentage off and it is put on a gift certificate.
Calculate the ripoff yourself:
https://www124.americanexpress.com/cards/loyalty.do?page=bluecash.maximize
I find AmEx Blue Cash to be the best for cash back. I charge everything I possibly can (and pay it off monthly), about 4-5K a month. We reach $6500 by mid Feb.
I got $1200 credited to my account last fall. And I only have to use one card, not card A for gas, card B for groceries, etc. Plus, I’d rather have cash than travel miles.
The first $6500 can be on anything and they never said 5% was “average”. It’s not like 5% is typical for cards – this card is one of the few that offers 5% on anything – so they SHOULD say “up to 5%”. It caught my eye and lived up to it’s ad.
I’m very cynical about fine print and could have started this site, however, instead of feeling AmEx was being deceitful, I was thrilled to find a card that offered far more back than any other card I saw, and with no hassles.
They used to have a cap of 50K/year, now it’s unlimited, so I don’t have to change cards in the fall when I hit 50K.
It’s really a great card if you charge over $1000 a month. I have a Visa with book rewards that I use at the few places that don’t take AmEx.
Plus, I just read that you can buy giftcards to restaurants, stores at the grocery or drug store, get the 5% credit, and then just use those instead of the AmEx card when you go out to eat (or places where you don’t need CC protection).
If you know of a better card, let me know!
How can you call it a rip-off if they include a calculator right on the website where you go to apply?
There’s no fee for the Blue Cash card and it seems straight forward to me. I’d rather earn miles or points as that’s more valuable to me.
Your rebate is awarded annually for each Rebate Year (12 consecutive billing periods). Rebate percentages for each Rebate Year are as follows:
*For the first $6,500 of annual purchases, the rebate is 1% for Everyday Purchases and 0.50% for all other Eligible purchases; for Eligible purchases of $6500.01 or more, the rebate is 5% for Everyday Purchases and 1.5% for all other eligible purchases. “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.
AMEX cash back is not a rip off since they disclose the information about their cash back. I know it’s unlikely I’ll spend $6500 in a year, but getting the 1% on gas/grocery is good since I always pay off my balance.
I just joined now; how is annual defined? Is it based on calendar year, or will my “annual” calculation start now? This could make a big difference reward-wise, since we’re more than 1/2 way through this year. Thanks,
There is a better option for those who wont reach the 6500 limit early. It’s called the Pentaggon Federal Credit Union.
5% cashback on gas (at gas pump).
1.25% cashback on all other purchases.
Your cashback is subracted from your monthly balance. Say if you spend $40 in Gas at a pump and $60 on other purchases, totalling $100, your balance for tnat month would be $97.25. With Amex, you wait for 14 months.
Also, no tier.
The fact they say “up to” should be all the honesty I need. It’s like saying the lottery, you HAVE A CHANCE of winning (no matter how small it is)
Thanks for the info guys…….it was very helpful. I’ll go with Blue Cash AEX but I plan a MC or Visa backup . Does anyone know of a 5% card for dining.
This just goes to show you that you must read and understand everything before signing your name and that includes all the confusing small print in credit card company lingo. Then hope they don’t change it because then you will have to read and understand again.
You guys are hilarious. Of course this isn’t a good card if you don’t spend a lot. Isn’t that how most cash back cards are? The more you spend, the more you get. For those, like me, who spend ~$6,000 a month, this card is gold. You can’t beat it. Amex isn’t lying. You’re just being stupid if you don’t read the fine print. Everyone knows what you’re getting when you sign up, it’s right there in the writing. Why would you sign up for a card and not read the fine print? Every company has these types of restrictions and disclosures. You’re acting like Amex invented it or something. It’s all about sifting through the disclosures and rates and deciding for yourself what’s the best card. This card is great for people who spend a lot. If you buy $2,000 in groceries a year you’re not EVER going to find a card that will pay you high rates.
Beware of AmEx Green Card annual membership charges $95 for the primary card holder and $35 for each additional card member (spouse or adult children in college). By and large AmEx is more consumer friendly than other cards I’ve held, however, the benefits (1 year product warranties on purchases) aren’t worth the cost.