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The Blue Cash Preferred® Card from American Express wants to better reward cardholders, particularly millennials, for their everyday spending habits. That’s why some new bonus categories have been added to the card, including 3% cash back on transit purchases.
While it isn’t considered a travel rewards card, the Blue Cash Preferred® Card from American Express can be a great way for infrequent travelers to earn more on certain travel expenses and get rewards (cash back) they’ll actually use. Note that the card has an annual fee of $0 intro annual fee for the first year, then $95.
» Learn more: Cash back vs. travel: How to choose credit card rewards
Here’s what you should know about the new transit spending perk.
What counts as transit purchases
The transit category is pretty wide. Paying for parking, train tickets or tolls counts as transit spending. Ridesharing is also part of the definition, so taking an Uber or Lyft will earn you the 3% cash back as well. There’s no limit to how much cash back you can earn in this category, unlike the grocery category, which will earn the 6% cash back on the first $6,000 in purchases, then drop to 1% cash back. You can also earn the bonus on transit purchases abroad, too.
» Learn more: NerdWallet’s best credit cards for transit spending
Why the bonus for transit
The card’s refresh follows the results of a consumer survey of older millennials. American Express and Wakefield Research conducted an online survey of people ages 31-38 on their day-to-day spending habits and found that groceries, streaming services and commuting are their biggest expenses. While other American Express cards offer benefits with individual transportation partners, like Uber statement credits that come with The Platinum Card® from American Express , this is the first transit bonus category for American Express.
Travelers also can benefit by using the Blue Cash Preferred® Card from American Express to pay for public transport and Lyft or Uber rides during their trips. More general travel rewards cards like the Chase Sapphire cards already include transit purchases as part of their bonus on travel spending, so make sure you know what bonuses your current card already has before signing up for this one.
Road trip enthusiasts can compound the transit bonus with 3% cash back on gas purchases and access to the American Express Roadside Assistance hotline (855-431-1156), which can help with car troubles like flat tires or dead batteries.
If you want cash back for transit ...
The new 3% cash back on transit purchases is great for travelers who don’t already have a card that rewards them for taking rideshares or the subway. People who don’t travel frequently are also more likely to use the cash back than the travel rewards points.
Planning a trip? Check out these articles for more inspiration and advice: Travel rewards bucket list: Showering on a plane NerdWallet’s top travel credit cards This strategy is how I started earning major travel rewards