Update: Offer expired!
Originally posted on 10/11:
The Blue Cash Preferred Card currently gives 6% cash back at grocery stores, 3% cash back on gas and department stores, and 1% cash back elsewhere.
The 6% is quite lucrative obviously and people were buying gift cards and prepaid credit cards (which can be cashed out) at grocery stores to take advantage of that. Plus my local grocery store gives 6%-12% of gift card purchases back to you in the form of discounted or free gasoline, so the actual net discount on gift cards was 12-18%.
All good things come to an end though and at your next card renewal date (when you get billed the $75 annual fee) that occurs on or after 01/15/13 you will be subject to a cap of $6,000 of grocery spending. After you spend $6,000 (earning $360 of cash back) it will drop to just 1%.
The good news is that cards that are opened before 11/05/12 will have an entire year of uncapped 6% cash rebates on grocery purchases! Cards opened on or after 11/05/12 will be subject to the new $6,000 cap immediately.
If you are an existing cardholder and pay your annual fee in March for example then the cap starts in March of 2013. If your annual fee normally comes up in December than you’ll have all the way until December of 2013 with no cap.
•Earn $150 cash back in Reward Dollars when you spend $1,000 in the first three months of Cardmembership.
•Get 6% cash back at U.S. stand-alone supermarkets, 3% cash back on gasoline at U.S. stand-alone gas stations and select major department stores; 1% cash back on other purchases.
•Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit. Cash back is earned only on eligible purchases.
•Simple and Straightforward: With the Blue Cash Preferred Card, you can start earning cash back. No rotating reward categories. No enrollment required.
•An annual fee that can pay for itself: With 6% cash back at supermarkets, if you spend $25 per week at your supermarket, you can earn over 75 Reward Dollars per year and your $75 annual fee will pay for itself.
•Terms and Restrictions Apply.