The American Express® Blue Cash Preferred® Card offers a significant cash back reward on groceries, with a spending limit of up to $6,000 per year in purchases at U.S. supermarkets.
Understanding Your Grocery Cash Back
This annual limit applies to the accelerated cash back rate you earn on eligible supermarket purchases. Once you reach this $6,000 threshold within a calendar year, any further purchases at U.S. supermarkets will typically earn cash back at a reduced rate, usually 1%.
Here's a quick overview:
| Feature | Details |
|---|---|
| Grocery Spending Limit | Up to $6,000 per year |
| Applicable Merchants | U.S. supermarkets |
| Rate After Limit | Typically drops to 1% cash back on additional supermarket spending for the remainder of the calendar year. |
| Reset Period | The $6,000 limit resets at the beginning of each calendar year (January 1st). |
What Qualifies as a "U.S. Supermarket"?
It's important to understand how American Express defines "U.S. supermarkets" to maximize your rewards and ensure your spending counts towards the limit. Generally, these include:
- Stand-alone grocery stores that primarily sell food and beverage items.
- Examples often include popular chains like Kroger, Safeway, Whole Foods Market, and regional supermarkets.
However, certain merchants commonly associated with food purchases typically do not qualify:
- Superstores: Large retailers like Walmart® Supercenters or Target® that sell a wide variety of goods in addition to groceries.
- Warehouse Clubs: Stores such as Costco® or Sam's Club®.
- Convenience Stores: Small stores primarily selling snacks, drinks, and a limited selection of groceries.
- Specialty Food Stores: Butcher shops, bakeries, or smaller, specialized gourmet food stores.
- Meal-Kit Delivery Services: While food-related, these are usually categorized differently.
To be sure, always check the merchant category code (MCC) if you are uncertain, or refer to the specific terms and conditions provided by American Express for the Blue Cash Preferred Card. You can find more detailed information directly on the American Express website.
Maximizing Your Rewards
To make the most of your Blue Cash Preferred Card:
- Track Your Spending: Keep an eye on your grocery spending throughout the year to know when you're approaching the $6,000 limit.
- Diversify Spending: Once you hit the limit, consider using a different credit card for supermarket purchases that offers a better rewards rate on everyday spending, or pivot your Blue Cash Preferred Card use to its other bonus categories, such as streaming subscriptions or gas stations.
- Understand Eligible Merchants: Familiarize yourself with which specific grocery stores qualify for the accelerated cash back to ensure you're always earning at the highest rate.
By understanding the annual grocery limit and eligible merchant types, you can effectively manage your spending and maximize the cash back rewards from your Blue Cash Preferred Card.
