Full Review of American Express Blue Cash Preferred

Pros Explained

• Outstanding Cash-Back Rewards, Especially at Supermarkets and Streaming Services: This card offers the top cash-back rewards rate for supermarkets and streaming services in our database. It currently offers 6% cash back at U.S. supermarkets, on up to $6,000 in spending per year, and 6% with no limit on select services like Hulu, Netflix, and SiriusXM. 
• One-Time Offer for New Cardholders: The one-time introductory bonus is one of the most generous that’s currently available, and should be fairly easy to achieve. New cardholders can earn $250 back after spending $3,000 in purchases on the new Card within the first 6 months of card membership. You will receive the $250 back in the form of a statement credit.
• 0% Intro APR on Purchases: For the first 12 months of membership, all purchases with this card are charged 0% APR (as long as you follow the card terms). That can be useful for financing a major purchase, as long as you pay it off before the introductory period is up. The APR increases to a typical range after the first year.

Cons Explained

• $95 Annual Fee After the First Year: Although American Express charges no annual fee to new cardholders for the first year, the annual fee is $95 afterward. To break even on the fee within a year, you’ll need to spend at least $31 per week at a combination of supermarkets and streaming services, or $62 per week on eligible gas or transit. Naturally, you can mix spending in these categories, and supplement your rewards with other spending, which earns an unremarkable 1% cash back.
• Superstores and Warehouse Clubs Are Excluded from the Top Cash-Back Earnings: Grocery purchases at superstores like Walmart and Target and wholesale clubs like Sam’s Club and Costco do not qualify for the 6% cash-back tier, nor do gasoline purchases at these retailers qualify for 3% cash back. Rather, all purchases at these stores earn only the default 1% cash back. The same applies to groceries purchased almost anywhere else but a supermarket, such as at convenience stores. Online grocery shoppers are in luck, however, since some online supermarket services, like FreshDirect, may be eligible for 6% cash back; we recommend testing with a small purchase first.  
• 2.7% Foreign Transaction Fee: This charge makes the card a poor choice for travel, since most travel rewards cards waive this fee. Amex's 2.7% fee is triggered whenever a foreign merchant or bank is involved in a credit card transaction.
• American Express Isn't as Widely Accepted as Visa, Mastercard, or even Discover: While American Express can be used at thousands of merchants, its level of international acceptance is significantly lower than other major card networks, though its domestic acceptance is at near-parity with Visa, Mastercard, and Discover. It is, however, accepted by most major streaming services. Before you decide on this card, though, check that the merchants you frequent, and especially your local supermarkets and gas stations, accept American Express. 

Who This Card Is Best For

The American Express Blue Cash Preferred card is best-suited to those who buy their groceries at traditional supermarkets or subscribe heavily to streaming services, or both. Purchases in these categories come with an unequaled 6% rewards rate. If you maxed out your spending at supermarkets at the annual limit of $6,000, for example, you'd earn $360 in cash back—more than three times the $95 annual fee. Spending $50 per month on streaming services like Netflix, Hulu, Spotify, HBO Now, and ESPN+ could net you another $36 in cash back per year. 

The card is also a fine choice for commuters, since it earns 3% cash back on gas and transit purchases. If you charge to this card the average amount spent by a household on gas, which was $2,148 in 2021 according to the U.S. Bureau of Labor Statistics, you'd earn $64 in cash back. If you're a transit commuter, you could earn about $25 a year in cash back if you spent an average of $70 per month on transit passes.

Blue Cash Preferred Card One-Time Offer 

Introductory offer: Earn a $250 statement credit after you spend $3,000 in purchases on your new card within the first 6 months. That’s a relatively small spend (for the time period) for a relatively hefty reward. By comparison, other cards have spending requirements as high as $3,000, but often for cash rewards of at most $150 or $200.

Rewards Earning Details

This card offers:

• 6% cash back at supermarkets in the U.S, up to a maximum spend of $6,000 per calendar year
• 6% cash back on most streaming video and audio service subscriptions in the U.S.
• 3% cash back on transit and gas expenses.
• 1% cash back for all other purchases.

Streaming service purchases must be on American Express' approved list in order to qualify for cash-back rewards. The list is expansive, encompassing most or all of the major audio (Spotify, Audible, Apple Music) and online video (Netflix, Hulu, HBO Now) streaming services. Online cable alternatives (Sling TV, YouTube TV, DirectTV now) are also included, as is SiriusXM service, either online or via satellite. Not included, notably, is service billed through major cable or satellite TV services. Transit purchases include taxis, ride-sharing services, ferries, tolls, parking, buses, and subways. Spending on airfare, car rentals, and cruises is not eligible.

Rewards Redemption Details

Cash-back rewards are received in the form of rewards dollars that can be redeemed as a statement credit once they total $25 or more.

How to Maximize Your Rewards

The best way to use the Blue Cash Preferred card is to max out the 6% cash back on supermarket purchases, up to the $6,000 annual cap. Charge all of your streaming services to the card to earn the same hefty 6% rate, and use the card as much as possible for gas and other transit expenses to earn a still-generous 3% back. If you're not sure if a purchase from a certain retailer will qualify for a bonus category, do a small test purchase and see how much you earn. All other purchases earn 1%, which can still add up.

Average Case

Let's say your family spends $7,061 on groceries per year, $348 on streaming services, $254 on transit, and $1,977 on gas. You’d earn $458 in cash back from this card, without considering other miscellaneous purchases that would earn 1% in cash back.  That's a weekly spend of $135.79 at supermarkets (assuming you buy all of your groceries there), $6.69 on streaming services, $4.88 on transit, and $38.02 on gas. 

Aspirational Case 

Families can really maximize the Blue Cash Preferred by opting to buy more items at the supermarket, shifting their TV-service spending from ineligible cable and satellite services to eligible streaming services, and charging all local transit and gas purchases to the card.

For example, if you can't reach the $6,000 cap for supermarket spending through food alone, consider purchasing pharmacy products, pet supplies, household cleaners, and other items that you might otherwise buy elsewhere (as long as those purchases wouldn't cost more than 6% less elsewhere). Consider buying gift cards to fill out the remaining annual limit, but be aware that not all supermarkets allow gift cards to be paid for with credit cards (and some gift card purchases may be coded as cash advances).

Cutting the cord on cable or satellite and increasing your spending on streaming services could also help. In addition to on-demand providers such as Netflix, services like DirecTV Stream are often cheaper than cable or satellite while still allowing for live TV streaming. You could earn $36 in cash back a year by charging a $50-per-month cable alternative streaming service to the card.

And since this card doesn't charge for additional authorized user cards for others, adding the entire family to maximize spending on ride-sharing and gas would also be beneficial. A family that together spends $3,000 on gas annually, for example, would earn $90 in cash back. 

Blue Cash Preferred Card Outstanding Benefits

• Buy Now, Pay Later: Pay no plan fees when you use Plan It(R) to split up large purchases into monthly installments during the first 12 months after account opening. Plans created after that incur fees.

Standard Benefits

• Fraud and return protection*
• Purchase protection*
• Extended warranty*
• Free shipping through ShopRunner membership
• Rental car collision insurance (secondary to your own policy)*
• Sports, music, and event ticket presales, plus VIP access at some events
• Global Assist Hotline*
• Get $7 back each month after using your Blue Cash Preferred Card to spend $12.99 or more each month on an eligible subscription to The Disney Bundle, which includes Disney+, Hulu, and ESPN+. Enrollment required.
• Get up to $120 in statement credits annually when you pay for an Equinox+ membership at equinoxplus.com with your Blue Cash Preferred® Card. That's $10 in statement credits each month. Enrollment required.

*Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.

Cardholder Experience

American Express ranked number one in J.D. Power's 2022 U.S. Credit Card Satisfaction Study (as it often does), beating all other ranked, widely available major credit card issuers.

Customers can utilize the company's help center on its website or mobile app for inquiries about their card; they'll find frequently asked questions and how-to videos.  The customer service call center is available 24/7 at (805) 528-4800. Members can also log in to their account on the website or app to chat with a representative.

Security Features

Credit cards from American Express come with a slew of security benefits. Cardholders have access to free credit reports, credit report alerts, and credit score updates. 

The Blue Cash Preferred also has pre-purchase verification to confirm that your use of the card on certain purchases is authentic, and it benefits from Amex alerts for irregular account activity.  If you lose your card, American Express will replace it for free. It will be delivered within a few days, sometimes the next day.  Virtual credit card numbers can be made through the American Express Go portal, and international travelers can set up a PIN for additional security while on the go.

Fees to Watch Out for 

This card doesn't come with a lot of fees, relatively speaking, and those it does carry are in line with industry standards. However, for international travelers, the 2.7% foreign transaction fee is quite a hindrance. Anyone planning to spend money regularly outside the U.S. should look for a credit card (preferably Visa or Mastercard) with no foreign transaction fees.

Our Verdict

The high rates in the American Express Blue Cash Preferred's main bonus categories—supermarkets, streaming services, transit, and gas—make it a stand-out card for day-to-day spending, as opposed to cards whose most generous rewards are in travel or entertainment categories.  It's also a good fit for consumers who want a card for more than just rewards. The 0% introductory APR provides the opportunity to finance a major purchase over quite a while while still earning cash back and taking advantage of other perks. 

Pairing this card with a solid flat-rate cash-back reward card could make it an even better choice. The Citi Double Cash Card, for instance, pays an unlimited 1% cash back when you buy and then an additional 1% when you pay for those purchases. That's essentially 2% cash back on all purchases, making it a good option for purchases that don't fit into the Blue Cash Preferred's bonus categories. There is also no annual fee or cap on rewards purchases with the Double Cash.

Though the Amex Blue Cash Preferred is a good option for those seeking great cash-back rewards, it's not the best choice for travel outside the U.S. There's a 2.7% foreign transaction fee, the 6% rate at supermarkets only applies to retailers in the U.S., and its travel rewards and perks don't quite compete with the best travel credit cards.

Visit the following link to see rates and fees for the Blue Cash Preferred Card from American Express: