Can You Get Cash Back with a Credit Card?

Key insights:

• Cash back is a credit card benefit that allows you to earn a percentage of eligible purchases as cash back
• Cash back programs work differently, with cash back amounts, eligible categories and redemption options varying by card and provider
• Before choosing a cash back card, always compare card features to find the right card for you

The ability to get cash back is one of the key benefits of using certain credit cards. Some credit cards offer cash back programs that can put money back in your pocket. Typically, you can earn cash back with a credit card by making eligible purchases. Read on to learn more about how cash back with a credit card works.

How to get cash back with a credit card

With a credit card that offers cash back, you earn a percentage of each eligible purchase as cash back. Some cards offer a flat percentage on all spending categories, while others offer a tiered system with a higher percentage for certain types of purchases.

For instance, the Citi Double Cash^® Card offers unlimited 2% cash back (1% as you buy and 1% as you pay), plus an additional 3% on hotels, car rentals, and attractions booked through the Citi Travel^® portal. So, if you spend $100 on a hotel stay and pay it off, you’ll earn $5 as cash back.

You can typically redeem your cash back at any time in one of a few ways:

• Direct deposit to a linked bank account
• Statement credit toward your card balance 
• Mailed check from your card provider
• Participating merchant gift cards or loyalty rewards cards

Each provider and card has different policies, so the options depend on the card you use. Regardless, it’s usually easy to choose how you’d like to get your cash back by logging into your credit card account and viewing your rewards balance.

What to consider before getting a cash back credit card

Cash back programs are a simplified way to earn cash back when making eligible purchases. Each cash back credit card, however, is different. Before you sign up for a credit card, take these considerations into account:

• APR: A credit card’s annual percentage rate (APR) is the yearly cost of borrowing expressed as a percentage. It includes both the interest rate and any fees. 
• Cash back percentages: A credit card that offers unlimited 2% cash back is more rewarding than one that offers unlimited 1% cash back. 
• Available categories: Some credit cards offer more cash back in certain categories. If you don’t travel, a card that offers 5% cash back on travel purchases may be less rewarding than one that offers 3% cash back on groceries. The right cash back credit card rewards you on purchases that you frequently make. Also, note if there are caps on the amount of cash back you are eligible to receive monthly/quarterly/annually. For example, a credit card like the Citi Double Cash^® Card, has no caps on the amount of cash back you can earn. 
• Redemption options: A credit card provider that only allows you to redeem cash back as a statement credit is less flexible than one that offers direct deposit or other ways to redeem.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.