What is a cash back card?
A cash back card is pretty much how it sounds: you earn “cash back” for shopping with your credit card. How much you earn depends on your card’s earn rate, usually around 1% to 3%, though some rewards programs will offer you higher rewards for specific spending categories.
What are the types of cash back cards?
Though you have no shortage of cash back credit card options, you can separate them by the structure of their rewards program. In general, you can classify cash back cards as
flat-rate, bonus-category, and
Flat-rate
Flat-rate cards offer one universal earn rate, which is applied to all purchases. For example, if your card has a 2% flat-rate, you’ll earn $2 for every $100 you spend, no matter if it’s on gas, food, or travel.