How cash back credit cards reward your spending You may also have to keep in mind that some cash back credit cards specify a maximum number of cash back you can earn within a specific time period. There are important differences in what kinds of spending get rewarded and what format the rewards take, such as rotating categories and the value of points. How do cash back credit cards work?Ĭash back credit cards accrue rewards when you make purchases within specific categories (such as grocery stores or gas stations) on the card.
These rewards may seem small, but they can add up quickly. An example: If you have a card with a purchase rewards rate of 1.5% and you make $100 in purchases, you would earn $1.50 in cash back. Cash back rewards can take the form of dollars or points - with points typically redeemable on an online marketplace operated by the card issuer.Ĭash back rewards operate on a percentage basis. Credit card cash back rewards are bonuses provided to credit card customers when they use their cards to make purchases.
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