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Cashback is a type of discount or rebate that customers get when purchasing using a credit card or other form of payment. After the transaction, the customer gets some of the value back in cash. Generally, cashback is offered as a percentage of the purchase price.
There are multiple ways to redeem cashback offers, such as receiving a check or direct deposit. Alternatively, customers can apply the amount to their account balance. Some credit cards and other financial products even offer cashback as an incentive and reward for using the product.
Retailers are also known for this promotional offer. The idea is to increase sales and encourage customer loyalty. Both sides profit from the deal though!
Store | Cashback Details |
---|---|
CVS | 2% back via ExtraBucks Rewards. Every 1 prescription filled gives 1 credit. At 10 credits, customers get $5 in ExtraBucks Rewards. |
Kroger | Earn points via Kroger Rewards World Mastercard. Up to 5% cashback on Kroger Pay transactions, plus the opportunity to earn points. Every $1 spent in the Kroger Family of Companies awards 2 points. 1,000 points = $5 in free groceries. |
Walmart | 1%, 2%, or 5% back, according to the terms of the Walmart Rewards Card |
Target | 5% cashback on all purchases with Target RedCard, plus a $50 credit for opening a RedCard |
Amazon | 5% back on all Amazon purchases with a Prime Visa Card, plus a $100 gift card upon card approval |
Best Buy | 5% back and free eligible shipping with no minimum purchase for eligible purchases via My Best Buy Visa |
Apple | Apple Card holders get 3% cashback on Apple Store, Apple Music, and other Apple services purchases. 2% back whenever using Apple Pay. |
Home Depot | No direct cashback program, but Home Depot offers special financing through its Credit Center program. For example, 6 months financing on purchases over $299. |
Lowe’s | 5% off eligible purchases via MyLowe’s Rewards Credit Card. Customers also get 20% off their first purchase (up to $100). |
Cashback offers help customers get back a percentage of their purchase through cash or rewards points. After completing a purchase at a participating retailer, you’ll receive the benefits via the cashback app or website that tracks the purchase.
You’re then able to redeem your cash or use it as a credit to offset future purchases. Here’s an example:
Note: Some cashback apps and websites also offer discount coupons and deals. These help customers save money on purchases. These offers may be applied automatically at checkout or require the customer to add a promotional code.
Cashback offers may have restrictions, such as minimum purchase amounts or exclusions for specific products or categories. You should always read the terms and conditions of cashback deals before purchasing to ensure the transaction is eligible.
These cards give you the same cashback rate on all purchases, regardless of the category. For example, the Citi Double Cash Card offers 2% cashback. 1% when you buy and 1% as you pay off those purchases.
These cards offer different cashback rates depending on the spending category.
For example, The Bank of America Customized Cash Rewards credit card works like this:
These cards offer higher cashback rates on specific categories that change each quarter. Cardholders may need to activate these categories each quarter to earn the higher rate.
For example, The Discover it cashback card offers 5% on everyday purchases at different places each quarter, such as Amazon, grocery stores, restaurants, or gas stations. Customers also get unlimited 1% cash back on all other purchases.
Some cards offer a high cashback rate on specific categories. For example, American Express’ Blue Cash Preferred provides 6% cashback at US supermarkets and select US streaming subscriptions. There’s also a 3% back offer for transit, including rideshare, parking, trains, buses, and more.
Some rewards cards give you extra value when you redeem your cashback for certain options, such as a gift card or travel booking. Several credit card issuers provide redemption bonuses for choosing certain redemption options.
For example, some card issuers may offer higher redemption values if you choose to get gift cards for specific retailers. You might offers such as “redeem $20 in cashback for a gift card worth $25.”
Some retailers offer store credit cards that offer cashback on purchases. The amount of cash earned may vary based on the type of purchase and the specific terms of the store’s credit card program. Store credit cards incentivize customer loyalty via discounts or rewards at affiliated stores.
These are for cashback on purchases made at gas stations. The amount earned may depend on the type of gas purchased and the specific terms of the credit card program.
Travel credit cards offer rewards when you buy flights, hotel stays, and car rentals. The amount of cashback you get could vary depending on the kind of purchase and the credit card program’s rules.
A cashback credit card rewards the cardholder with a percentage of their purchases back in cash. The cash can be applied to the credit card bill, received as a check, or deposited into a bank account. The amount of cash back earned may vary based on the type of purchase and the specific terms of the credit card program.
Yes. Some merchants and payment apps may offer cashback rewards for purchases made with Apple Pay. However, the availability and terms of cashback rewards for Apple Pay purchases may vary. Check with the merchant or payment app to see if cashback is offered and see the specific terms and conditions.
Yes, you can receive cashback for purchases made from your Android phone with Google Pay. The availability and terms of this offer differs from business to business.
Cashback rewards are not necessarily free money. They are typically earned through spending and may be subject to specific terms and conditions. Without spending, you’re not getting anything back; and without spending a lot, you might not get back that much.
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