Getting Cash Back on Your Credit Card

Credit cards are one of the most popular ways of making purchases. They are relatively easy to use. Also, they allow you to withdraw money when you need to. It does not matter if you are out of cash, all you have to do is to withdraw it from your credit card. Many credit card issuers give amazing bonuses to their customers. Some of these bonuses are in the form of points, air miles, or money. Generally, this money is called cash back.

Understanding Cash Back and Credit Cards

Usually, when we make purchases using our credit card, merchants have to pay the money for the transaction. This money goes to the card issuers. Because card issuers are friendly people, they allow us to get a piece of the cake and this piece of the cake is called cash back. In most cases the amount of money that you will receive as cash back is in direct correlation with the money you have spent using your credit card.

If the amount of money you spent is increased, then the cash back will be greater. It is a small percentage of the net expenditure. To attract more and more customers, many banks offer cash back about during the first couple of months. This is proven to be really effective for gathering more potential card holders. After this introductory period, the cash back rate will either increase or decrease.

Usually, to get the cash back you need to wait for the calendar year to end. You should received your cash back reward by the beginning of the next year. This will really help you out if you have spent a lot on Christmas presents. Also, this allows the bank to do all the calculations properly. There are many customers and they all need to be served well by customer service. This allows the system to operate smoother and without any mistakes.

How Do You Get Your Money?

Usually, there are two possible ways to get your money. Other banks offer some additional ways. The first way is to deposit the money in your bank account that is linked with your new credit card. Many people find that this way is not very convenient since they want to have the rewards in cash. However, it is much safer to have the money in your bank account than cash in your wallet.

The other way to get your cash back reward is by check. This is an easy way for you to get your money. However, sometimes there is a delay between the time the bank sends you the check and by the time you receive the check. Also, keep in mind that sending things through the mail is not as safe nowadays and anything could happen to your check. You will also have to pay a small for using this service.

The best way to receive your money, which is absolutely fee free, is to let the bank deposit your money in your bank account that is linked with your debit card. This is really convenient for you and the bank.

However, you need to have a bank account attached to your debit card in the same bank. If you choose to transfer your money to another bank through your debit card, you will have to pay a transaction fee. That is why it is better if you only use one bank and stick with that bank for a long time.


Many banks do not inform their customers about the cash bank option. The reason for that is again to make profit. So, keep in mind that the bank doesn't always tell you everything. To understand what is really going on, you have to ask.

Feel free to ask the employees in the bank if you have any questions. Also, ask when the rate is going to change. Many banks start with a good cash back rate and then it suddenly drops after a certain amount of time. To avoid any misunderstanding, you must be very focused and thorough when you are dealing with money.

The bank employees must explain to you in detail what is going to change after some time. That way you will be able to make calculations about your future savings, expenses, and etc. Planning is the key to be successful in life and to plan you need knowledge.

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