This actually isn't very much. I have this card and while it does barely pay for its yearly fee, that's about it. I spend about $300/month on groceries which I think is reasonably in most places except for the most expensive cities. Here's the math:

$300 * 12 (months) = $3600 (yearly food budget) * 0.06 (rewards) = $216 - $95 (annual fee) = $121 reward dollars annually.

Now consider the amex interchange rate of 1.95% + $0.10 per retail transaction. Let's say I shop 24 times in a year. ($0.10 * 24) + ($3600 * 0.0195) = $72.6.

The most amex could possibly lose on my card in a year is $73. But only the most disciplined people will use it for groceries and only groceries.

I have an earlier iteration of this with a lower cashback rate and no annual fee. I have to spend over a certain threshold per year to unlock the marketed cashback - it's substantially less below that spend.

One thing that should be made clear is that the cash back is not on groceries, it's on purchases made at grocery stores. Groceries bought at Wal Mart, Costco, Target, etc. don't qualify. Similarly, the percentage cashback for gas doesn't apply to gas stations attached to other stores, e.g. Murphy, Kroger, etc.

I suppose this card could be different, if so it might be worth the annual fee.

One theory is that the high rate on groceries is a way to make you carry around the card every day, so you're more likely to use it on other things.

With contactless payment systems like Apple Pay, there's little need to carry around more than one default credit card.

Unless you end up somewhere that doesn't support ApplePay, and doesn't accept AmEx. It's uncommon (where I live, at least), but it definitely happens.

That's why the one card I carry is Visa. If apply pay doesn't work, then I don't get the biggest % reward, but it doesn't matter that much to me.

I assume that's why the parent said there's little need to carry around more than one

But if your 'one' is the '6% on groceries' AmEx, you do need to carry more than one (or accept that there will be places you can't spend money).

That card is still accepted anywhere Amex is accepted. But yes, if you want to cover vendors who don't accept Apple/Google Pay or Amex, then you would need to carry multiple cards.

6% on groceries with $95 annual fee.

But most families will easily recover that just on their grocery shopping alone.

$95/(0.06-0.03)=$3,166.67

If you spend $263.89 or more per month at grocery stores it makes sense to upgrade to the Blue Cash Preferred. Keep in mind this excludes Costco, Walmart, Target.

If you buy groceries at Whole Foods and are a Prime member, you can get 5% via the no annual fee Prime Rewards Visa, which makes sense if you spend under $95/(0.06-0.05)=$9,500 per year at Whole Foods.

I use this Amex card for everything, the 6% back on groceries is great and more than pays for the cards higher fee. The last two years we've capped out the 6k max which is $350 right there.

Bonus, the card is clear plastic which everyone comments on when they see it.

Interesting. I have a similar Amex clear plastic card and I don't recall anyone ever commenting on it.

That's fun - can you see the antenna they mould into the plastic?

There's no antenna, contactless payment cards are pretty uncommon in the US.

There is an Amex clear card with antenna. They kind of built it into the design. I can't remember which one is was though.

I have the Canadian Amex Simply Cash, it's clear and has an antenna for contactless payments