The various rewards programs being introduced by credit cards are being lapped up by the consumers, but it is the cash back rewards that are being keenly sought after. The rewards under the cash back category have seen a “slight” increase over the last few months across leading credit card lenders which has led to this rise in popularity. A little more than fifty credit cards issued by close to nineteen credit card lenders were analyzed as a part of the study. Over 25 credit cards offer 1 percent cash back on all purchases made, which roughly amounts to an increase of 44 percent as compared to the last year. The study has also revealed that there are credit cards that offer cash back rewards of more than 1 percent for card holders.
Most of the cash back rewards though are limited only to certain categories such as gas stations, grocery purchase, hotels, online shopping and more. There are also certain special conditions that govern high cash back rewards to ensure banks benefit as well. For example, one of the prominent cash back rewards cards from Capital One, The No Hassle Rewards credit card offer a cash back of 2 percent for grocery shopping and refueling. However, all other purchases entail a cash back reward of just 1 percent. Card holders who have the Fidelity Investment Rewards American Express credit cards are entitled to cash back rewards of 2 percent if they choose to accumulate their rewards in a Fidelity account.
The study conducted also revealed that most of the credit cards offering cash back rewards do not have any annual fees and over 66 percent of the cards do not have a set expiry date for the rewards to be redeemed. Therefore, if your current card has increased its interest rates and reduced the rewards being offered, it is time to consider signing up for other lucrative credit cards that reward you well for shopping.
If you are wondering about what is making credit card lenders offer you lucrative rewards, here is quick insight. Regulations of the Durbin amendment stipulate that retailers cannot charge swipe fees for customers using debit cards, but credit cards are not bound by these regulations. Therefore, banks are rewarding customers using credit instead of debit cards.