American Express Blue Cash Preferred®
Why this is your pick
The highest cashback rate at U.S. supermarkets available on any card: 6% on the first $6,000 per year. A family spending $400/month on groceries earns $288 in cashback from groceries alone — netting $193 after the annual fee. Add 6% on streaming and 3% on gas and the value compounds further.
Pros
- 6% cashback at U.S. supermarkets (best available)
- 6% on select streaming services (Netflix, Hulu, etc.)
- 3% cashback on transit and gas
- $250 welcome offer after qualifying spend
- No foreign transaction fee on Amex Platinum holders
Cons
- $95 annual fee
- $6,000 annual cap on 6% grocery rate (then 1%)
- Amex less accepted than Visa at some smaller stores
Frequently asked questions
What counts as a 'supermarket' for the Amex Blue Cash Preferred?
U.S. supermarkets with a qualifying Merchant Category Code (MCC). This includes major chains like Whole Foods, Trader Joe's, Kroger, Safeway, Publix, and most regional grocery stores. Excludes warehouse clubs (Costco, Sam's Club), big-box retailers (Walmart, Target, Amazon Fresh), and convenience stores.
Is the Blue Cash Preferred worth the $95 annual fee?
For families spending $300+/month on groceries, yes. The math: spending $400/month × 6% = $288/year just in grocery cash back. The free version (Blue Cash Everyday) earns 3%, which is $144/year at the same spending. The Preferred earns $144 more — which more than covers the $95 fee, netting you $49 ahead.
Is there a cap on the 6% grocery cashback?
Yes — the 6% rate applies to the first $6,000 per year in U.S. supermarket purchases (then 1%). For a household spending $500/month, that's $6,000 annually, which exactly hits the cap. Households spending more than $500/month on groceries will want to pair this with a second flat-rate cashback card.
Does the 6% apply to Instacart orders?
It depends on the merchant. Instacart orders from qualifying supermarkets may earn 6%, but this varies by how Instacart codes the transaction. Direct grocery store purchases (in-store or on the store's own app/website) consistently earn 6%.
What's the best credit card for Costco grocery purchases?
The Costco Anywhere Visa by Citi earns 2% on Costco purchases — which includes their grocery-equivalent products. However, if you do most grocery shopping at traditional supermarkets, the Blue Cash Preferred's 6% outperforms it significantly.