How Do Cash Back Credit Cards Work?
Cash back cards work like any other card, except you can get cash back on your purchases. The credit may take several days or weeks before it shows up in your account depending on which credit card company you use.
How Does Cash Back Redemption Work?
Some credit card issuers require you to have a minimum amount of cash back and pay your credit card bill before automatically depositing the money into your account, applying it as a statement credit or receiving it in a specified form.
Direct Deposits into Your Bank Account
Some companies allow you to transfer your cash back into a designated bank account. If this is the case, it’s sometimes an option that only appears after reaching a minimum threshold for redemption.
Travel Points
If you use your cash back credit card for travel expenses, then it’s likely the company offers a statement with several different types of redemption options.
Online Shopping
Companies frequently offer extra points or a higher percentage of cash back for shopping through their site or even buying specific brands.
Charitable Donations
If you’re trying to do some good and still earn rewards, this option is a great way to combine those goals. However, there is usually a transaction fee taken out.