What is a Cash Back Credit Card – A Simple Explanation

Here is a quick post that answers the question “what is a cash back credit card?”

• A cash back credit card is a credit card which rewards users with cash rebates based on spending.
• Most cashback credit cards offer a certain percentage back – usually ranging from 1% up to 5%.
• This rebate percentage often varies for spending categories such as gas, groceries, travel, etc.
• The cash back rebates can also be limited by an introductory period or by late bill payments.
• Credit card companies afford to offer cashback by charging merchant fees and interest fees.
• Wise consumers are using cash back credit cards to earn money just for using their card.

What is your definition of a cash back credit card? Perhaps your definition varies slightly. If so, tell us about it in the comments below. We welcome all feedback provided you do not abuse the system with spam.

For example, perhaps you consider airline miles or store rebates the same thing as cash back. The only difference is that you have to spend your money with a certain company to qualify for the cash back. Maybe you would’ve spent your money there anyway.