3 pointers for cash back rewards benefits


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Travel with Credit Cards » 3 pointers for cash back rewards benefits

3 pointers for cash back rewards benefits

Updated: December 26, 2012

The content is accurate at the time of publication and is subject to change.
Credit card companies offer a variety of rewards to selected customers. Among the many reward programs is the Cash back, this system among the others, is offered to attract customers. Customers feel that with the cash back rewards, they will get back a part of their money. One must remember however, that the terms and conditions of the credit card companies have been tailor-made in such a manner that the cardholder does not earn huge amounts in cash back. This is done to protect the business interest of the credit card companies. It should be noted that only one to five percent of the final purchase is offered as cash back. So unless the user spends a sizeable amount he will not earn much of cash back that would stand to be beneficial for him. Irrespective of the above factors, there are certain benefits of cash back reward credit cards. These benefits can be summarized in the following points:
  1. With the cash back reward credit card, the cardholder earns a percentage of cash for every purchase made. The purchases can be from food and beverages to air line tickets or common grocery materials. Cash back reward credit cards offer a scheme through which the credit card user is paid a part of the money that he spends back.
  2. Cash back reward credit cards can be used to balance the monthly credit bills. Since this facility offered by the different credit card companies pay a percentage, which is usually one to five of the total expense, the cardholder gets to save that percent of money from his bills.
  3. The use of cash back reward credit card is not confined to a specific use or merchant. This facility can be used anywhere and anytime. Some credit card companies have a period throughout which, the reward remains valid. The user therefore needs to use the cash back facility within the grace period.
Cash back rewards are most beneficial in case of business credit cards. They have been found to be greater in value than normal credit cards. As it is difficult for common consumers with an average credit line to make purchases of higher monetary value, therefore their credit cards will have no or minimal cash back benefits. Business people with an above average credit line will be able to reap the advantages of cash back reward offers. Since the business expenses are much larger than that of common people, their cash back percentages will be higher. Moreover, credit card companies will offer greater cash back benefits to such people as the bank will have a greater opportunity to earn revenues than that of the normal middle class customers.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Other Travel with Credit Cards Research:

Related Research:

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: February 12, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Cash Back or Travel Rewards? Here’s How to Decide On The Right Card

Posted: February 10, 2018

If you're trying to find the perfect rewards credit card, you might feel like you're drowning in options. There are just so many out there, and many of them look similar. This can make it tough to decide on a card. One thing people often ... Continue reading
Price Protection: Credit Cards That Will Refund a Price Drop

Price Protection: Credit Cards That Will Refund a Price Drop

Posted: February 8, 2018

Those who often find themselves buying stuff and then discovering that they could pay less for the same item they've just bought, will appreciate this credit card benefit – price protection. This is the least known and the most neglected ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!