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Research: Cash back rewards for regular shoppers -

Cash back rewards are the most common reward schemes that are available these days. Like the name says, cash back reward schemes give back rewards in cash for purchases made using the credit card. Cash back reward schemes work in a very simple way. The customer uses the credit card for purchases in any store. For every purchase made, a certain percentage of the total amount will be given back to the customer. These reward schemes suit best for people who regularly shop using their credit cards.

Different credit card companies have different conditions appended to this reward scheme. Certain credit card companies give cash back only when the customer uses the credit card in participating stores. While there will be participating stores in every category, it limits the customer to use the card, and still get the benefits. Credit card companies have different percentages of cash back rewards for different kinds of purchases made. For example, the reward scheme may provide 1% cash back for every grocery purchase made, and give 5% cash back for every purchase made at a participating departmental store. The percentage of cash back reward is not fixed, but it keeps varying through the year. For example, the customer might receive additional 5% cash back every three months as a bonus, or the reward percentage might slightly increase during the holiday season and so on.

The ways in which credit card companies provide cash backs are different with each company. Some companies give back the rewards as soon as they are earned. Others accumulate the rewards earned and give them once every three months. Some companies issue checks for customers with every billing cycle. Customers can also choose to get the cash rewards directly in their bank accounts. Some participating departmental stores will apply the discounts on the bills of purchase, and give instant cash back. Most of the times, the customer gets to choose the way in which they can receive cash backs.

As with any other reward scheme, there are conditions and clauses applied to cash back reward schemes too. Some credit cards have restrictions on certain stores, where this reward scheme cannot be used. Also, the amount which can be earned through this reward scheme might sometimes be limited. For example, some credit cards might have an upper limit set for the total amount earned by reward scheme in three months. Others might have that restriction for every billing cycle. Reading through the fine print will give an idea about any such conditions applied to reward scheme that the credit card offers.

Because of the sheer number of credit cards these days, it is difficult to choose the best among them. A comparison of both pros and cons of different credit cards offering the cash back reward schemes will help shortlist the top few cards among them. Before applying for the cards, it is better to check if the company provides cash back rewards regardless of the stores in which the purchase is made. These reward schemes might be revoked if the credit card is not maintained properly, so paying bills on time is very important to get the most of them.