Amex BCP Rewards Getting Capped Next Year

All about maximizing your rewards!
Members share tips and tricks for getting the most cash back, miles, & points.
87 posts
LadyinRed
Platinum Member
Platinum Member
 
Posts: 71
Joined: Mon Jul 23, 2012 8:14 pm
Location: Los Angeles, CA

Amex BCP Rewards Getting Capped Next Year

Postby LadyinRed » Fri Oct 05, 2012 10:47 am

According to a post I saw on Reddit this morning, it appears that the Blue Cash Preferred rewards on groceries is getting capped starting in January 2013.
FYI Blue Cash Preferred Cardholders: 6% grocery cashback will be capped next year (or, all good things must come to an end). : personalfinance

So if you have the $75 annual fee Blue Cash preferred, you need to spend $2500 or more in groceries per year to make it worth it over the 3% cashback on groceries (but annual fee free) Blue Cash Everyday.

A lot of people easily did this by buying not only their groceries at grocery stores, but got 6% cashback on a lot of other items too - by buying gift cards (Shell/Mobile/BP, Amazon/Best Buy, Gap/American Eagle, etc) at the grocery store (single retailer gift cards typically have no fee to buy beyond money loaded on them).

This was always officially excluded per cashback policy, but Amex could never tell what you were buying because all they got was the total purchase amount and merchant category code - they could tell you spent $252.31 at a grocery store, not that $102.31 was groceries and you bought $150 in gift cards.

Unfortunately, as of January 15th, 2013, you will only earn 6% cashback on the first $6,000 in grocery spending per calendar year. This should be printed on your October statement.

The card should still be worthwhile if you break $2,500 in grocery spend as you'll outdo the rewards of the no annual fee card (including deducting the annual fee from those rewards), but for the highly dedicated people buying a lot of gift cards who would break $6K, this may be a big deal.

More importantly, realize credit card rewards are never set in stone. Sometimes the change is positive (e.g. Discover upped the 5% quarterlies to $1500 in eligible spending from a lower amount), but great rewards can always be capped (e.g. Sallie Mae recently capped the grocery and gas 5% cashback on one of their Visa Signature cards). Always watch your statements.
$6,000 a year comes out to $500 a month in groceries. That's more than my husband and I spend a month in groceries, but I literally just got the card like a week ago and was really looking forward to the gift card buying trick. Though, I suppose the cap was to probably discourage the gift card buying. I hope that the Chase Freedom card will offer 5% back for a quarter next year - that should help.
AMEX: Blue Cash Preferred (6% on groceries, 3% gas & dept stores)
Capital One: Venture (2 points per $1, equivalent to 2%)
Chase: Freedom (rotating 5% categories), Disney Rewards (1 point per $1, Disney benefits)
US Bank: Cash+ (5% bookstores / 5% Electronic Stores)


andrewket
Gold Member
Gold Member
 
Posts: 25
Joined: Mon Jul 23, 2012 11:53 am
Location: Virginia

Postby andrewket » Fri Oct 05, 2012 1:25 pm

<groan>

Another one bites the dust.

User avatar
Victorleo
Gold Member
Gold Member
 
Posts: 43
Joined: Tue Apr 17, 2012 3:21 pm
Location: San Francisco

Postby Victorleo » Fri Oct 05, 2012 1:41 pm

Thats funny my reward dollars have not posted this month for BCP. Amex has dissapointed me lately . :shoot:


FutureBillionaire
Centurion Member
Centurion Member
 
Posts: 1589
Joined: Sun Jun 19, 2011 2:37 pm
Location: Down South

Postby FutureBillionaire » Fri Oct 05, 2012 3:44 pm

Victorleo wrote:Thats funny my reward dollars have not posted this month for BCP. Amex has dissapointed me lately . :shoot:


Mine haven't posted either. I almost wonder if they are trying to figure out a way to determine which spending is actually for groceries vs gift cards.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

FutureBillionaire
Centurion Member
Centurion Member
 
Posts: 1589
Joined: Sun Jun 19, 2011 2:37 pm
Location: Down South

Postby FutureBillionaire » Fri Oct 05, 2012 3:46 pm

LadyinRed wrote:According to a post I saw on Reddit this morning, it appears that the AMEX Blue Cash Preferred rewards on groceries is getting capped starting in January 2013.
FYI Amex Blue Cash Preferred Cardholders: 6% grocery cashback will be capped next year (or, all good things must come to an end). : personalfinance



$6,000 a year comes out to $500 a month in groceries. That's more than my husband and I spend a month in groceries, but I literally just got the card like a week ago and was really looking forward to the gift card buying trick. Though, I suppose the cap was to probably discourage the gift card buying. I hope that the Chase Freedom card will offer 5% back for a quarter next year - that should help.


They realized that you can't really tell what you are buying at the grocery store, so they had to do something I guess. You can still make alot of cash with the trick. You will probably just need to spread it between a couple other cards now.
Gas: Discover It, Penfed Platinum Rewards x2, Chase freedom, Citi TYP
Plane tickets: CSP
Groceries: AMEX BCP, Penfed Platinum Rewards,Citi TYP
Clothes: Express, Amex BCP, Discover IT
Amazon: Citi Forward, Cash +
Restaurants: Citi Forward, Chase Freedom, Discover IT, CSP
Hotels and other travel: Discover Escape, CSP
Movies: BofA travel rewards visa signature(fandango), Discover IT, Citi Forward, Freedom
Bars, clubs, tomfoolery: CSP, Citi Forward, Discover IT, Freedom
Balance transfers: Kroger 123 rewards
Bill Pay: Chase Ink Plus, Citi Forward
Everyday spending: Bofa Accelerated cash rewards amex, Discover Escape

craigm1
Centurion Member
Centurion Member
 
Posts: 285
Joined: Wed Dec 01, 2010 8:44 pm
Location: toms river nj

Postby craigm1 » Fri Oct 05, 2012 5:01 pm

I hope they leave the original blue cash alone!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Current Cards: American Express:Grandfathered Blue Cash CL 34k member since 89
Chase Freedom CL 7.5k member since 04
Chase Marriot Rewards Premier CL 20k member since 13
Chase Sapphire Preferred CL 25K member since 13
Bank Americard Cash Rewards Signature Visa CL 14k member since 11
Discover Cashback Bonus $10.5k member since 11
US Bank Cash + Signature Visa 19k member since 12
Citibank Thank You Preffered World Mastercard $16.5k member since 14

User avatar
t528491
Platinum Member
Platinum Member
 
Posts: 80
Joined: Sun Aug 05, 2012 12:49 pm
Location: GA

Postby t528491 » Fri Oct 05, 2012 7:01 pm

This doesn't affect me right now, as I don't spend nearly enough to warrant getting the BCP over the BCE.
But I was hoping to use this card a lot in a few years! :mad:
[size=80]
02/12 Authorized user on Chase Freedom ($5000)
08/12 Discover It ($1500)
08/12 American Express Zync (NPSL)
12/12 NFL Visa ($500)[/size]

[size=60]Future cards:
Citi Forward for Students 6/13
American Express Blue Cash Everyday 1/14
Sallie Mae World Mastercard 2014
Chase Freedom 2014
Penfed Platinum Rewards Card 2015[/size]


craigm1
Centurion Member
Centurion Member
 
Posts: 285
Joined: Wed Dec 01, 2010 8:44 pm
Location: toms river nj

Postby craigm1 » Fri Oct 05, 2012 8:33 pm

last year I spent over 9k at the supermaket blah!!!!!!!!!!!
Current Cards: American Express:Grandfathered Blue Cash CL 34k member since 89
Chase Freedom CL 7.5k member since 04
Chase Marriot Rewards Premier CL 20k member since 13
Chase Sapphire Preferred CL 25K member since 13
Bank Americard Cash Rewards Signature Visa CL 14k member since 11
Discover Cashback Bonus $10.5k member since 11
US Bank Cash + Signature Visa 19k member since 12
Citibank Thank You Preffered World Mastercard $16.5k member since 14

murakami
Gold Member
Gold Member
 
Posts: 30
Joined: Sat Jul 07, 2012 10:08 am
Location: San Francisco

Postby murakami » Sat Oct 06, 2012 7:35 pm

We are in the 300$ a month range (and only buy gift cards when we need to give a gift) so we have a little wiggle room before we would hit the cap. From a selfish perspective I would rather see them keep the 6% flat and cap the spending (at a level I do not intend to hit) rather can cut the category rate.

andrewket
Gold Member
Gold Member
 
Posts: 25
Joined: Mon Jul 23, 2012 11:53 am
Location: Virginia

Postby andrewket » Sun Oct 07, 2012 8:29 am

The cap will hit me hard. I've spent $16k at grocery stores so far this year (Jan-Oct). This was the primary reason I got BCP.



Return to “Rewards”

Who is online

Users browsing this forum: No registered users and 7 guests