The is one of our favorite cashback credit cards. Compared to other outstanding cashback cards, such as the and the , the has the potential to net even more rewards for your spending.
: great if you can maximize the spending categories
The offers a high rewards rate on two categories that make up most of people’s budgets. You earn
The U.S. supermarket rewards rate is the highest bonus percentage we’ve seen for that category. While the 6% can only be earned on the first $6,000 of U.S. supermarket spending in the year, it’s still an exceptional rate for U.S. supermarket purchases compared to other credit cards. A 3% cash back rate on U.S gas stations is above average as well.
The card also offers 6% cash back on select U.S. streaming subscriptions and 3% cash back on transit including taxis and rideshares, parking, tolls, trains, buses and more. These accelerated bonuses more than make up for the card's annual fee.
benefits and features
In addition to the cashback earnings, the card comes with other notable benefits, such as a generous welcome bonus and lifestyle benefits.
Great welcome offer
When you are approved for the , you will have the opportunity to
This is one of the largest cash-based offers currently available, making the a great competitor against other cashback credit cards.
Shopping benefits
When you shop with the , you can purchase with confidence knowing you have return and purchase protection from American Express.
Return protection will cover eligible purchases if the merchant will not accept the return up to 90 days from the date of purchase. American Express may refund up to $300 per item, up to $1,000 per year per account.
Purchase protection covers eligible items for 90 days if they are stolen or damaged. American Express covers up to $1,000 per covered purchase and up to $50,000 per eligible card.
Also, you receive complimentary Shoprunner membership. Shoprunner earns you free two day shipping and returns on eligible items from over 100 retailers, like Saks Fifth Avenue and Neiman Marcus.
Alternatives to the
We've picked out a few other top cashback credit cards to help you pick the right cashback credit card for your wallet.
Earn 5% back on rotating categories
The Discover it® Cash Back offers 5% cash back in categories that change each quarter, up to a quarterly maximum each time you activate. The quarterly categories for 2020 are:
- Q1 (Jan-Mar): Grocery stores, Walgreens and CVS
- Q2 (Apr-Jun): Gas stations, Uber, Lyft and wholesale clubs
- Q3 (Jul-Sept): Restaurants and PayPal
- Q4 (Oct-Dec): Amazon.com, Walmart.com and Target.com
These categories are accessible to nearly all consumers. However, the 5% cash back has a limit of $1,500 in spending, which means that you will maximize this category at $75 each quarter. Anything past the $1,500 threshold each quarter will earn 1% cash back.
The Discover it® Cash Back also matches all cash back earned in the first year of card membership. For example, if you earn $300 in the first year, Discover will match that $300 to total $600 in cash back. Plus, unlike the , it has annual fee.
If you can remember to activate the categories each quarter and the categories fit your spending patterns, you can earn a high rate of cash back with the Discover it Cash Back.
Customizable cashback categories
The Bank of America® Cash Rewards credit card is another great selection for consumers interested in a cashback credit card with tiered rewards.
The Bank of America gives the following cash back, with a bit of added flexibility:
- 3% cash back on one of the following selected categories: gas, online shopping, dining, travel, drug stores or home improvement/furnishings
- 2% cash back at grocery stores and wholesale clubs
- 1% cash back on all other purchases
You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1% cash back on everything else. The 3% category can be manually selected, or it will automatically default to gas.
The Bank of America® Cash Rewards credit card also comes with a large
If you want to avoid an annual fee, or if you would benefit from customizing your earning categories month to month, the Discover it® Cash Back is a good way to go.
Good earning categories and consumer protections
Similar to the Bank of America® Cash Rewards credit card, the lets you
The categories for 2020 are:
- Q1 (Jan-Mar): Gas stations, internet services, phone services and select streaming services
- Q2 (Apr-Jun): Grocery stores (Walmart and Target not included), fitness club and gym memberships
- Q3 (Jul-Sept): TBD
- Q4 (Oct-Dec): TBD
Plus, the purchases you make with the card come with great consumer protection policies, like purchase protection and extended warranty protection. These policies will protect you against damage, theft and faulty products.
On the downside, the categories aren’t posted until two weeks prior to the beginning of a quarter, so it can be hard to estimate the cash back you could earn. However, the categories do not change significantly from year to year. Check out our cash back categories guide to see what categories have been posted in the past.
Comparison Tool
Our comparison tool can help you evaluate how each credit card works for your budget and spending habits. Check out the different options below and click on the gear icon to adjust the spending amount in each category.
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