What is a cash-back credit card?

A cash-back credit card is a type of credit card that offers a percentage of the purchase amount in cash back rewards. The percentage may vary from card to card, but generally, cash-back credit cards offer 1-5% cash back on all purchases. For example, if you spend $100 with your cash-back credit card, you may receive $1 to $5 back. This cash back can then be redeemed for rewards such as statement credits, gift cards, travel, or merchandise. Cash-back credit cards are regulated by the California Department of Business Oversight and must adhere to the laws and regulations set forth by the state. For example, cash-back credit cards must include various disclosures regarding fees, interest rates, and rewards on their applications. In addition, credit card issuers must follow a 12-day grace period and provide clear and conspicuous notice of the cardholder’s right to cancel the card. Cash-back credit cards can be a great way to save money and earn rewards, but like any financial product, it is important to be aware of the terms and conditions associated with it. Before opening a cash-back credit card, make sure to read the fine print and consider any fees or interest rates associated with the card.

Related FAQs

What is a penalty interest rate on a credit card?
When is a credit card issuer required to disclose the terms and conditions of a credit card?
Are there any rules or regulations that apply to credit card companies?
What is the Fair Debt Collection Practices Act?
How do I use a credit card responsibly?
What is a chargeback fee?
What is a credit card processor?
What are the side effects of using a credit card?
What is the difference between a credit card and a charge card?
What should I do if I spot an error on my credit report?

What is a cash-back credit card?

Related FAQs

Related Blog Posts