Cash back credit cards provide cardholders with cash rebates or cash
rewards for making purchases with their cards. The reward is usually a
percentage of purchases charged on the card, and usually up to a
limit.

Here is a list of the some of the most popular cash back
credit cards

If you are thinking about getting one of these credit cards here
are the things you need to be aware of

• Retailers pay for your reward
  You might be wondering how all the credit card companies can afford to
  give you cash back. They can do it because retailers and merchants are
  charged a fee for every purchase that you make with the card. So in
  essence, they take back a portion of that fee as your cash back
  reward.

• Beware of the annual fee
  Since cash back programs still end up being pretty costly to the
  credit card companies, some cash back credit cards will have an annual
  fee, which can range from around $25 to as much as $100, which will be
  incurred after you apply and are approved for the card. However there
  are still plenty of “No annual fee” cash back credit cards to choose
  from, so we would advice to look at those first.

• Check the percentage
  Normally, a cash back credit card will have a cash rebate of around
  1%, which is the industry standard.

• Cash back percentages can vary with time and merchants
  Most card issuers established a tiered level of rebates that were tied
  to amounts charged to the card. Scenarios such as 1/10th of 1% for
  monthly purchase below some high dollar amount, such as $2,500.
  Other cards will offer you a higher cash back percentage at select
  merchants, such as gas stations, supermarkets and select retailers.
  It’s up to you to decide which one will serve you best.

• Check where the percentage applies
  Be mindful that most cash back cards typically only offer cash back on
  purchases, so if you are transferring a balance or getting cash
  advances you might not get any reward from those actions.

• Cash Back cards are for people that don’t carry a balance
  Cash back cards typically have higher APR’s (roughly 1% higher)
  compared to standard platinum credit cards. If you carry a monthly
  balance, the higher interest rate on cash back credit cards will more
  than offset the rebate that you’ll receive and you’ll end up paying
  back the cash rebate in the form of higher interest charges to the
  card issuer. A recent survey by BankRate.com revealed that four out of
  five cardholders preferred to receive lower interest rates rather than
  cash back.