Popular Cash Back Credit Card Announces Enhanced Cash Rebate Structure

Posted On: April 29, 2005

Blue Cash from American Express, a popular cash back credit card, will be offering an enhanced cash rebate program effective May 8th, 2005.

The current cash back reward structure is as follows:

Total Annual Spend: Up to $2000
Cash Back on Everyday Purchases: 0.5%
Cash Back on Other Purchases: 0.25%

Total Annual Spend: $2,001-$6,000
Cash Back on Everyday Purchases: 1.00%
Cash Back on Other Purchases: 0.50%

Total Annual Spend: $6,001 - $50,000
Cash Back on Everyday Purchases: 3.00%
Cash Back on Other Purchases: 1.50%
Bonus % if you carry a balance: 2.00% for Everyday Purchases and 0.50% for Other Purchases.

Everyday purchases are defined as purchases made at stand-alone U.S. supermarkets, drugstores, gas stations and home improvement stores.

Starting on May 8, 2005, the rebate tiers will change to the following new structure:

Total Annual Spend: $0 - $6,500
Cash Back on Everyday Purchases: 1%
Cash Back on Other Purchases: 0.50%

Total Annual Spend: $6,500.01 - $50,000
Cash Back on Everyday Purchases: 5%
Cash Back on Other Purchases: 1.5%

Please Note! The new categories of Everyday Purchases will be U.S. supermarkets, gas stations and drug stores that are not departments of superstores or warehouse clubs. Also, rebates will only be awarded on the first $50,000 of eligible purchases for each rebate year based upon the applicable rebate percentages above.

These changes will be welcome news to Blue Cash cardholders. The only drawback will be that home improvement purchases will no longer be labeled as “Everyday Purchases”. Fierce competition among issuers of reward credit cards is prompting enhancements to reward card programs, which is great news for consumers!

Click here for more details about Blue Cash, including online appplication information.