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The Amex Cobalt 5x categories rest on a detail few cardholders know about: the merchant code registered with American Express. That code, not what the store sells on its shelves, decides whether your purchase earns 5 points per dollar or just one.
This guide lists the eligible merchants in Canada, explains the ambiguous cases such as Walmart and Costco, then covers the monthly cap that cuts the multiplier. To place the card among the other options, see our page on the best credit cards.
The American Express Cobalt® Card applies four earn levels. Only one level carries a cap, the 5 points per dollar tier. Here is the full grid.
Membership Rewards points are worth roughly 1.7 cents according to our credit card spending categories guide. Therefore, 5 points per dollar work out to about 8.5% in value. That is the best rate on the Canadian market for groceries and dining.
Every business that accepts payment cards receives a merchant category code, often called an MCC. That code describes the main activity the business declared to the network. American Express reads the code, then applies the matching multiplier.
In other words, the contents of your basket do not count. A sandwich bought at a gas station stays a gas station purchase. Conversely, a bottle of wine bought in a restaurant stays a restaurant purchase.
Here is a concrete example. You buy milk and bread at a Couche-Tard convenience store. The business is registered as a convenience store, a category eligible for 5x. You therefore earn 5 points per dollar. The same milk bought at a pharmacy earns 1 point per dollar, because the merchant code is a pharmacy code.
Before talking about categories, a simpler question comes first: does the store accept American Express? Indeed, several large Canadian banners still refuse the network. Our page on the best credit cards for groceries tracks this acceptance, verified with the banners.
In short, a traditional grocery store that accepts the card almost always pays 5 points per dollar. Doubt mainly appears with hybrid formats, covered in the next section.
These three retailers sell food, yet none behaves like a grocery store in the eyes of the network. Here is why.
Walmart Supercentre accepts Visa and Mastercard, but not American Express. You therefore cannot use the Cobalt® Card there in store. Costco, for its part, accepts Mastercard only and records its purchases under a warehouse club code rather than a grocery code.
In other words, the question “does Walmart count as grocery” cannot be settled at the till, because the card is not accepted. For these retailers, our best cards for groceries page points to a Visa or Mastercard instead.
Amazon accepts American Express, but its merchant code corresponds to a general online retailer. We have no confirmation that a grocery order on Amazon triggers 5x. To stay safe, treat these purchases as 1 point per dollar until your statement proves otherwise.
The same reasoning applies to online grocers and delivered basket services. Some bill through the physical store code, others through an e-commerce code. The outcome therefore depends on the payment setup, not on what is in the order.
American Express describes this part of the 5x tier as eligible purchases at eats and drinks locations in Canada. The coverage is therefore broad: full service restaurants, quick service counters, cafés, breweries and bars.
Delivery platforms count as well. As our page on the best credit cards for restaurants states, Uber Eats, DoorDash and SkipTheDishes purchases are categorized as restaurants and earn the 5x multiplier with the Cobalt® Card.
However, one nuance deserves attention. These platforms sometimes sell grocery items or subscriptions. Those transactions can run through a different code than a meal order. Watch your statements if you use these services beyond dining.
The 3 points tier covers subscriptions to eligible streaming services in Canada, per the American Express terms. This category carries no cap, which makes it attractive despite the lower multiplier.
With Membership Rewards points at 1.7 cents, 3 points per dollar are worth about 5.1%. No Canadian card does better on streaming, as our spending categories guide confirms.
American Express publishes its own list of eligible services, and that list changes. Consequently, we do not reproduce a named list of platforms here. Check the official list in your American Express account before counting on 3x for a specific subscription.
Since August 15, 2023, American Express caps the 5x tier at $2,500 in purchases per month. Beyond that amount, the rate drops to 1 point per dollar until the period ends. This cap works out to $30,000 in eligible purchases per year.
One point deserves emphasis: this cap is shared. Groceries, restaurants, bars, delivery and convenience stores all draw from the same $2,500 envelope. A $300 restaurant bill therefore cuts into your grocery room for the month.
A gift card bought at an eligible grocery store runs through the grocery merchant code. That mechanic explains why several cardholders see it as a way to stretch their return. Our guide on gift cards and reward points explains the method in detail.
However, this practice carries a real risk. The American Express terms exclude certain transactions from points, and the issuer can reclassify a purchase after the fact. Moreover, an unusual volume of gift cards draws attention during account reviews.
The Amex Cobalt 5x categories reward one profile above all: someone who spends on food in Canada, at stores that accept the network, under the $2,500 monthly line. That profile earns roughly 8.5% in value, a national high.
On the other hand, heavy spenders, Costco regulars and frequent travellers need a second card. To follow changes in multipliers and caps, subscribe to our newsletter. You can also dig deeper into the program with our page on American Express Membership Rewards.
Related reading:
Here are frequently asked questions in the Milesopedia community about the Amex Cobalt 5x categories.
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