Key insights:
- Cash back on a credit card allows you to earn rewards for eligible purchases that you may redeem as a statement credit, cash, for gift cards or travel
- Credit card cash back programs work differently depending on the card issuer and the credit card
- Citi offers several credit cards that allow you to redeem cash back and cash back rewards on eligible purchases, including the Citi Double Cash® Card and the Costco Anywhere Visa® Card by Citi
Cash back credit cards let you earn rewards on eligible purchases, which you can redeem for cash back, typically in the form of statement credits, checks or direct deposits. You may also be able to redeem rewards for gift cards and travel.
How much you can earn and on what types of purchases depends on the credit card's terms and conditions, though most cash back cards work in similar ways.
How does cash back work?
Cash back cards allow a cardmember to earn rewards when they use the credit card for eligible purchases. The rewards can be redeemed for cash back value, sometimes expressed in points or literal dollars. Some cards offer the same amount of cash back for all purchases made with the card. Other cards offer higher rates of cash back in specific or rotating categories with a base earn on other purchases.
For instance, the Citi Double Cash® Card earns unlimited 2% cash back on all purchases (1% as you buy and 1% as you pay). The Costco Anywhere Visa® Card by Citi earns a higher percentage of cash back in some categories than in others.
Keep in mind that not every purchase may earn cash back. Always check the terms and conditions and consider how you’ll use a card when deciding whether it’s right for you.
How do you redeem cash back?
When redeeming cash back rewards, your credit card may have a few options. Common methods include:
- You can redeem accumulated cash back for a statement credit. This way, you can apply earned cash back toward your credit card balance. (It’s important to note, however, that this typically does not count toward your minimum payment due. For more specifics, check your card’s terms and conditions.)
- You can request a direct deposit or a check by mail.
- You can redeem your rewards for specific items, such as gift cards. You may also be able to redeem your rewards directly at participating retailers.
Is cash back unlimited?
Some cash back credit cards, like the Citi Double Cash® Card, offer unlimited cash back, but not all. Others may have a periodic cap on the total cash back you can earn in specific purchase categories.
Do cash back rewards expire?
Your rewards may expire under certain conditions. For example, rewards might expire after a certain amount of account inactivity or if you close your credit card account. Check the terms and conditions of your credit card for more information.
Is there a fee to redeem my cash back rewards?
While most cards don’t charge a fee to redeem cash back rewards, there may be an annual fee on the card. If you’re considering a card with an annual fee, think about whether the cash back rewards you’re likely to earn — along with other perks — balance out the annual fee.
Is there a rewards redemption minimum?
Some cash back cards require that you accrue a minimum level of rewards before you can redeem them for cash back. To find out whether there’s a redemption minimum, check your reward program’s terms and conditions.
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.
