Credit Card Cashback

Warning: mkdir() [function.mkdir]: Permission denied in /home/webs/affiliatelib2/CacheManager.php on line 12

Warning: mkdir() [function.mkdir]: No such file or directory in /home/webs/affiliatelib2/CacheManager.php on line 12

Warning: fopen(/home/templatecore2cache//*cluesnet.com/62/625b84fc010586b7c1fc3075ba943df59be5651e.tc2cache) [function.fopen]: failed to open stream: No such file or directory in /home/webs/affiliatelib2/CacheManager.php on line 130

Warning: fwrite(): supplied argument is not a valid stream resource in /home/webs/affiliatelib2/CacheManager.php on line 131

Warning: fclose(): supplied argument is not a valid stream resource in /home/webs/affiliatelib2/CacheManager.php on line 132

When accepting payment by credit card, merchants typically pay a percentage of the transaction amount in commission to their bank or merchant services provider. Many credit card issuers, particularly those in the United Kingdom and United States, share the commission with the card holder by giving the card holder points, airmiles or a monetary amount. This last benefit, a monetary amount, is usually known as cashback, although it is often separated into two words (cash back) in the United States. Where a card issuer operates such a cashback scheme, card holders typically receive between 0.5% and 2% of their net expenditure (purchases minus refunds) as an annual rebate, which is either credited to the credit card account or paid to the card holder separately, for example by cheque.

Recently, major card issuers have raised the cash-back percentage up to 5%. The 5% cash back rate usually applies only to purchases made at grocery stores, pharmacies, and gas stations for 6 months. This high rate of cash back was set to grab the attention of potential applicants for them to consider applying for the card. After 6 months, it drops from 5 percent to 2 percent and 1 percent for all other purchases. Typically the cash back rate for all other purchases is around 1%.

Rewards based credit card products like cash back are more beneficial to consumers who pay their credit card statement off every month. Rewards based products generally have higher APRs. If you don't pay your balance in full every month the extra interest you would be paying will eclipse any rewards you earned.

In the United States, due to high gasoline (gas) prices, gas cash back cards or Gas rebate Credit cards became very popular among the consumers. Companies provide an average of 3% APR on new gas credit cards. The main idea behind gasoline discount cards is that cardholders obtain a sure percent of the sum they consume on gasoline each month in the form of a rebate check at the end of the year. It works similarly to a cashback discount recognition card with one noteworthy exception: the gasoline discount is frequently applied each month, whereas most cashback cards ship away discount checks formerly a year. This makes the savings easier to view for most consumers.

See also

credit cards
Gas rebate Credit cards

Paypal Credit Card
Get cashback on hotels, travel and much more ...

Cash Back Credit Card - Card Rewards - Compare Cashback Credit Cards
FIND the best cash back credit cards and earn cash while you spend. Exclusive deals at The Thrifty Scot

Credit Cards - Credit Card Finder, Cashback, Balance Transfer, Free ...
Find cheap credit with our free credit card finder. Use your free credit report to find cheap credit, cashback credit cards and good balance transfer credit card deals

Fool.co.uk - Compare Credit Cards - Find The Best Credit Card Deals ...
Credit Cards - Compare all the best credit card deals with the UK's leading financial community. 15 Months 0% Credit Cards with an Instant Decision.

Barclaycard Platinum Credit Card with Cashback
4% cashback on all spend (up to £15 cashback per month) until 30th September 2008; 0.5% cashback (up to £15 cashback per month) until 1st January 2010; 0% interest on balance ...

Cashback Credit Cards: Get 5% off ALL Xmas and Jan sales spending...
The best cashback card pays 5% back on all spending for the first three months. Simply buy everything you can on your card and make £100s...

Fool.co.uk - Compare Best Credit Cards
0% interest for 15 months on balance transfers and purchases, get up to 4% cashback. Compare the best credit cards and apply on line today.

Cashback Credit Card - Compare Cashback Credit Cards Today
uSwitch.com can find you the best cashback credit card. We are independent, impartial and free. Compare all UK credit cards and find great cashback deals.

Online Credit Card UK - 0% APR - Cash Back - NPBS
Norwich and Peterborough are a mutual building society that offer financial services including online credit cards at 0% APR, mortgages, savings, personal and business banking ...

Credit Card Guide And Best Buy Credit Cards From The Thrifty Scot
0% Balance Transfers; 0% Credit Cards; Cash Back; Card Rewards; Credit Report; Student Finance Guide; Credit Cards . Not all credit cards are the same. Many offer exclusive deals ...