There seem to be a lot of questions about the way AMEX Blue Cash handles its cashback rewards. When I searched the board it wasn't the easiest to find (and was sometimes wrong) as it was always buried in threads so I figured that posting the details here would help. First, here's the link to where this is explained: http://home4.americanexpress.com/blue/bluecash/bluecash_prodinfo.asp Now for the basics. It's a tiered program with a bonus for carrying a balance. There are two types of purchases: everyday and non-everyday. Everyday purchases are made at stand-alone U.S. supermarkets, gas stations, drugstores, and home improvement stores. (Stand-alone locations do not include the departments of superstores or warehouse clubs). Everything else is a non-everyday purchase. The rewards are accumulated over a 12 month period and you'll get your money two months after your anniversary date. The cashback is calculated based on how much money you've already put on the card that year (not calendar year but year since you got the card). Finally, you get a bonus during every month that you carry a balance on the card (any balance will do, even as little as $1). Just in case the link above is broken or gets moved in the future, here's the summarized info below: ==================================== While you're in the $1-$2000 range and NOT carrying a balance: 0.25% on non-everyday purchases 0.50% on everyday purchases While you're in the $1-$2000 range and carrying a balance: 0.75% on non-everyday purchases 2.50% on everyday purchases ===================================== While you're in the $2001-$6000 range and NOT carrying a balance: 0.50% on non-everyday purchases 1.00% on everyday purchases While you're in the $2001-$6000 range and carrying a balance: 1.00% on non-everyday purchases 3.00% on everyday purchases ===================================== While you're in the $6001-$50000 range and NOT carrying a balance: 1.50% on non-everyday purchases 3.00% on everyday purchases While you're in the $6001-$50000 range and carrying a balance: 2.00% on non-everyday purchases 5.00% on everyday purchases As you can see, the card's not for everyone. The savings can be substantial if you leave a small balance each month but it's only worth it to you if you have reason to believe that you're going to crack that $6000 mark sometime during the year. If not, this might not be the best program for you. My solution is to put everything I can possibly buy on my AMEX BLUE CASHBACK and pay off the entire balance minus $1 at the end of the month.
