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

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.