What is CashBack ?

Discover, American Express, Mastercard and Visa all have cash back rewards credit cards available for prospective cardholders.

Each abide by their own set of regulations, though card issuers decide on cash back rates, promotions and bonuses. Chase, Wells Fargo, Citi and Capital One represent some of the most active card issuers on the market today.

Below are a few examples of what you can expect to earn when looking for a cash back credit card:

4% cash back on eligible gas up to $7,000 per year, 3% cash back on eligible travel and restaurants, 2% cash back in-store and online with Costco and 1% cash back elsewhere

3% cash back on gas, 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other purchases – up to a quarterly cap of $2,500 in combined grocery/wholesale club/gas purchases

Unlimited 3% cash back on dining, 2% cash back on groceries and 1% cash back elsewhere

3% cash back on dining, 2% cash back at the supermarket and 1% cash back on everything else

3% cash back on up to $6,000/year at U.S. supermarkets (then 1%), 2% cash back at U.S. gas stations and select U.S. department stores and 1% cash back on other purchases

icture this: you’re buying some groceries on a Sunday morning, but know you’ll need $40 cash to fill up your car with some gas later. You could swipe your debit card at the supermarket and then head over to the ATM

Or you could ask for cash back right from the cashier, eliminating the extra errand.

The above situation represents the alternative definition of cash back. It’s ultimately the use of a cash register as if you were swiping your debit card at the ATM. When you request cash back from a cashier, your bank account will be charged the amount you asked for.

This enables the funds to be pulled from your account so the cash can be placed in your hand.

Although this generally only applies to debit cards, there are a few exceptions that allow credit cards to see similar usage. Discover allows cardholders to ask for cash back at more than 50 large retail stores without a transaction fee.

If you’re someone who wants freedom when spending their credit card rewards, you may prefer cash back to a points-based reward system

However keep in mind that cash back rates are sometimes less than those in point-based programs.

Many credit cards offer redemption bonuses if you redeem right to your bank account. So anyone who does most or all of their banking with one specific bank could see major cash back perks. Just be sure to check whether your bank offers this benefit.

This content is not provided by the credit card issuer. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the issuer.

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SmartAsset.com does not include all card companies or all card offers available in the marketplac