From January to March, you might earn 5% on gas and then for April to June it would drop back down to 1%. This means that the cashback rate is temporarily set at about 5%. You can also find cards that have a rotating special spending category, which can change quarterly. It’s like getting a built-in rebate on your purchase. Some spending categories may be favored over others such as gas or groceries, which could earn you up to 3% back. When you buy anything with a cash-back credit card, you earn what’s known as a “cash credit” for a percentage of the purchase, which is typically 1% to 2%. found that 54% of consumers found cash back discounts on purchases to be the most useful feature on a credit card, outranking discounts. Consumer Payment Study by Total System Services, Inc. How Does Cash Back Work On Credit CardsĪ 2016 U.S.
If you aren’t sure how credit cards work, you will want to check out this guide. Want to know how cashback works on a credit card? And how you can choose the right cash back-card for your lifestyle? Keep scrolling to find out what you need to know about cash back credit cards. To put it simply, cash back means you get money back when you use your credit card. From getting cash back to airline miles, there are varied reward programs meant to satisfy all types of cardholders. Understanding how does cash back work for credit cards can help you choose which card is right for you.Ībout 70% of Americans have at least one credit card, according to, and credit card companies use rewards programs to keep their customers happy. Cash back can be a rewarding way to get the most value out of your credit card. The concept of getting paid to spend sounds too good to be true, but for many cash back card members, it’s a reality.
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