Cash Back Credit Card is a reward given by a card issuing company to its customers to motivate them for making more purchases through the card. This reward is not given with each and every purchase to the card holder. Customers earn reward points with every purchase of goods and services. This point accumulates in the form of cash rewards for a given time period on the basis of purchase amount denominated in the local currency (Dollar, Pound, Yuan, Rupees, etc).
Cash Back Credit Card gives back the cash reward as a certain percentage of the total purchase amount which has been observed to be around 1%. Many card issuing companies have a variable rate structure for cash reward which increases with increased purchase amount through the credit card. Card issuing companies also give a higher cash back reward to its customers for buying goods/services from selective merchants or locations.
Cash Back Credit Card does not offer cash reward in the cases of cash advances/balance transfers. Thus a customer expecting a cash back reward should not expect a cash back when he is actually advancing cash and/or transferring balance.
Cash Back Credit Card is not a homogeneous card and has variable fees and reward structure. So, every customer going for such a card needs to throughly read the terms and conditions of the same for acquiring proper informations on cash back rate, limit of cash reward accumulation in a specific period of time (generally annually), etc.
Cash Back Credit Card is a relatively costly affair, so the card issuing companies charge an annual fee from the customers.
Some of the best Cash Back Credit Cards are as follows:-
- Chase Freedom Visa Card
It offers variable cash back rewards on the basis of stores from where the purchase has been made. If the purchase is done from a Grocery store/Gas station/Fast food restaurant then the customer is liable to get a cash back of 3% on every purchase of $1. But purchases from places except the above mentioned ones attract a cash back at the rate of 1% on every purchase of $1. Annual fee is not charged.
- Blue Cash from American Express
This card offers a cash back with a maximum limit of 5% on the total purchase made through the card. The cash rewards associated with such purchases are unlimited. A customer is also entitled to earn an unlimited cash reward. No annual fee is charged from the customer and the 0% introductory APR is valid for a period of 6 months.
For more informations on cash back credit card you may browse through creditcards.com, cashbackoutlet.com and credit-card-surplus.com.