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Definition of 'Cash Back'
Cash back can refer to two different kinds of card transactions:
1) An option available to retail consumers when, during a debit card transaction, the customer can request to add an extra amount to the purchase price and receive the added amount in cash. Cash back using debit provides customers a convenient method of obtaining cash when purchasing goods and services without having to make a separate trip to an ATM or bank.
2) A cardholder benefit offered by some credit card companies that pays the cardholder a small percentage of their net expenditures (purchases less refunds). Cash back benefits often provide the cardholder with the opportunity to choose from taking the cash, or using the "points" for purchases, travel (as with miles awards for air travel) or gift cards. Typically, cardholders must reach a certain points level to redeem for cash or other benefits. Some credit cards offer varying levels of cash back depending on the purchase. For example, a cardholder might earn 5% back on gas purchases, 2% on groceries and 1%on all other purchases.
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Investopedia explains 'Cash Back'
1) An example of debit cash back as a convenience: a customer has to purchase groceries and take cash out of their bank. Rather than make two trips to the store and to an ATM, they buy their groceries with a debit card (which totals to $45), and ask for $20 in cash back. The $20 is added to the transaction, making it total $65, and is given $20 in physical cash from the till.
2) Cash back and merchandise or travel bonuses are offered by credit card companies as a means of attracting new customers, and keeping old customers. Often, the APR for cards with this benefit is higher than for those cards that do not offer a cash back incentive. As a result, these cards are usually more beneficial to card members who are able to pay balances off in full each month; otherwise, the interest and fees could outweigh the cash back benefit. While some credit card companies allow the cardholder to "withdraw" the cash or redeem the points at any time as long as a certain threshold has been met, other cards will issue cash back award checks one a year.
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Search results for 'Cash Back'
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http://financialedge.investopedia.com/financial-edge/1211/Rewards-Credit-Cards-That-Give-Back-The-Most.aspx
... goal is not to create additional debt for yourself, but to have a strategy that
involves using the credit cards to collect points and cash back while paying ...
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http://financialedge.investopedia.com/financial-edge/1111/4-Ways-To-Get-The-Most-From-Your-Credit-Cards-This-Cyber-Monday.aspx
... Links Credit card companies offer shopping rewards programs similar to airlines'
mileage shopping rewards programs, except that you get cash back or points ...
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http://financialedge.investopedia.com/financial-edge/0811/Aug-10-Best-Loyalty-Programs-for-2011.aspx
... Discover Rewards Discover credit card holders can earn 5% cash back in rotating
categories throughout the year (as long as they remember to sign up each time). ...
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http://financialedge.investopedia.com/financial-edge/0711/Credit-Cards-Should-You-Ever-Pay-An-Annual-Fee.aspx
... Check out How To Dispute A Credit Card Charge.). 2. You can earn enough cash
back on your regular purchases to far exceed the annual fee. ...
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http://financialedge.investopedia.com/financial-edge/1011/Maximize-Your-Rewards-With-A-Few-Credit-Cards.aspx
... you purchase all of your gas at an ExxonMobil station and don't have to drive out
of your way to do so, you're not really going to get 4.3% cash back on all of ...
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http://financialedge.investopedia.com/financial-edge/1211/How-Much-Do-You-Need-To-Spend-To-Earn-Credit-Card-Points.aspx
... After that, a 1% Cashback reward rate applies. If you don't normally spend much
money in these categories, you won't earn much cash back with this card. ...
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http://www.investopedia.com/ask/ViewFAQPrintable.aspx?url=%2fask%2fanswers%2f12%2fpaying-mortgage-with-credit-card.asp
... Credit Cards, Mortgages. Paying a large, recurring bill with a credit card certainly
sounds like a smart way to maximize the points, cash back or frequent flier ...
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http://www.investopedia.com/ask/answers/12/paying-mortgage-with-credit-card.asp
Paying a large, recurring bill with a credit card certainly sounds like a smart
way to maximize the points, cash back or frequent flier miles you earn. ...
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http://www.investopedia.com/articles/pf/12/rewards-devaluation.asp
... How does a rewards credit card offering three points for every $1 charged stack
up against cards offering two miles per $1 and 1.5% cash back, respectively? ...
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http://www.investopedia.com/articles/pf/11/store-credit-cards-evaluation.asp
... (For more on store credit cards, check out The Truth About Store Credit Cards.)
TUTORIAL: Credit Cards Everyday Cash Back Some store credit cards offer a flat ...
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