When it comes to choosing between the American Express Blue Cash Everyday Card and the Blue Cash Preferred Card, many might find themselves leaning towards the Everyday Card for one simple reason: its rewards structure aligns better with everyday spending habits. The Blue Cash Everyday Card offers 3% cash back at U.S. supermarkets on up to $6,000 per year in purchases, 2% at U.S. gas stations, and 3% on transit including taxis, rideshares, and tolls, all with no annual fee. This straightforward approach to rewards is quite appealing.
However, the conversation often shifts when you consider upgrading to the Blue Cash Preferred Card, which does come with a $95 annual fee after the first year. It boosts the cash back to 6% at U.S. supermarkets on up to $6,000 per year, then 1%, and 3% on transit, including the same categories as the Everyday, but adds 6% back on streaming services. Here’s where the debate gets interesting.
Personally, I would upgrade from the Amex Blue Cash Everyday to the Preferred in a heartbeat if they offered 6% back on online shopping instead of streaming. It’s baffling why the free card seems to have a more practical reward category with its focus on supermarkets, gas stations, and transit, while the paid card leans into streaming, which, for many, isn’t a significant expenditure. Streaming is fine, but for someone like me, who spends considerably more on online shopping, the current setup of the Preferred Card doesn’t justify the annual fee.
Online shopping is a massive part of modern consumer behavior, with e-commerce continuing to grow. Offering 6% cash back on this category would not only make the Preferred Card more competitive but also more relevant to a broader audience. It’s like they’re missing out on tapping into a huge market by not aligning the rewards with where people are actually spending their money.
The Everyday Card, with its no-fee structure and solid cash back on essential spending categories, feels like it caters better to the everyday needs of consumers. Meanwhile, the Preferred Card, with its focus on streaming, seems to cater to a niche that might not be as universally beneficial. If American Express adjusted the Preferred Card’s rewards to include online shopping, it would provide a compelling reason to upgrade, offering a tangible benefit that matches spending patterns more closely.