What is CashBack ?

A Visa card is any type of payment card utilizing the Visa network and branded by Visa Inc. m

Some transactions also offer double rewards through merchant partnerships.

The cash back reward is often presented to the cardholder as a statement credit which can cover a portion of costs incurred through monthly purchases.

Offered through banks, affinity cards tied to nonprofit and charitable organizations can create a passive stream of donations.

Consumers may also receive the cash reward directly by deposit to a linked checking account or

Cash back is a perk offered by many credit card companies on some of their rewards credit cards.

Some cards offer the opportunity to earn even more cash back on purchases made by enrolling in quarterly promotions or shopping through their virtual shopping portals.

One of the easiest ways to spend smarter is by using a cash back credit card for everyday purchases,” says Maureen Powers, Vice President of Rewards for Discover.

“Instead of using cash, or a debit card, which typically offers little-to-zero rewards, opt for using a credit card that offers cash back perks.”

There is often a limit or cap on how much cash back you can earn on purchases through promotions or quarterly rewards programs.

For example, your card may let you activate 5% cash back at gas stations up to $1,500 for the quarter and provide 1% cash back on all other purchases.

Be sure to read the terms and conditions to fully understand (and take advantage of) your card’s cash back rewards program.

Bank Deposit: cash back you have earned into your checking or savings account. Some cards may allow you to cash out your balance without needing to earn a minimum amount. Be sure to read your terms and conditions to understand your redemption thresholds.

Statement Credit: You can often apply your cash back to your current credit card balance.

Charitable Donations: Some credit card companies allow you to donate some or all of your cash back to a charity of your choosing.

Be sure to pay your credit card bills on time, every time. And pay as much as you can to avoid interest charges.

The most commonly recognized style of cash back is what you have likely seen advertised as cash back credit cards.

The most commonly recognized style of cash back is what you have likely seen advertised as cash back credit cards.

The most commonly recognized style of cash back is what you have likely seen advertised as cash back credit cards.

This specifically refers to earning a certain percentage of your credit card purchases back as cash rewards. However, cash back rates vary widely, as do the categories that they apply to.

You usually won’t see credit card cash back rates higher than 5%, while 1% is the typically minimum you will earn.

Cash back categorization is significantly more complex though, with a merchant category code (MCC) system being the main organizing force.

Familiar alternatives to cash back include point- and mile-based programs, though many cardholders are partial to cash back.

Cash back affords cardholders an independence that is ideal, since you can redeem it for nearly anything.