Depending on the context, most people love getting more than what they bargained for. So let’s put it this way. You use a credit card to make purchases. Would you prefer to simply get what you paid for? Or would you like to get what you paid for PLUS some money back for making the purchases? The answer is easy. Who wouldn’t want cash back?
How do cash back credit cards work?
Cash back credit cards give you the ability to earn rewards on your everyday spending. Most highlight groceries and gas purchases as those that give you the highest percentages of cash back. Many also offer anywhere between one and five percent of your spending back when you dine out or shop at other retailers. Even routine expenses can contribute to a significant savings over time. Cash back cards basically give you small discounts on everything you buy!
“Cash back credit cards reward you by refunding a percentage of your purchases made using the card,” informs Jordann Brown on Ratehub.ca, “You can use this refund as a credit towards your monthly balance or as cash deposited into your bank account. Some cards offer a flat percentage on all purchases, while others offer higher percentages on select categories.”
What is the best cash back rewards credit card?
It totally depends on your spending and what you’d most like to get out of using the card. For example, many consumers prefer cards with no annual fees. This makes some cash back cards very cost-effective options. Other shoppers like to have enhanced security features. Perks such as zero liability protection, purchase protection, extended warranties and travel insurance add extra layers of security to your purchases.
“At Ratehub, we like the CIBC Dividend® Visa Infinite,” reveals Brown, “This card offers the best rewards for everyday essentials, with a 1% earn rate for all purchases and an industry-leading 4% cash back on both groceries and gas purchases – two of the most common spending categories for Canadian households. Thanks to CIBC’s new Cash Back on demand feature, you can choose to redeem rewards any time, starting at just $25.”
Are cash back credit cards worth it?
They sure are if you are earning more cash back than the annual fees you pay. This is pretty much always the case. Especially when you use a card that offers a high percentage of cash back, you can earn a significant sum over time. This is especially true if you use your card regularly to pay for specific items or recurring bills. “It’s important to pay off your bill in full every month, however, as growing debt can quickly overtake any benefits the card offers,” Brown points out.
Do you enable your customers to earn cash back?
You do, of course, if you accept credit cards! At Priority Pay, we proudly offer Canadian merchants a variety of high-quality payment terminals to choose from. You can easily and securely accept credit card and debit card payments with the Poynt C Smart Terminal, the Newland 910, the Ingenico Desk 5000 or the Ingenico Move 5000.
To learn all about your options, please don’t hesitate to call us 1-888-431-4344. You may also email us at info@prioritypay.ca or request a quote on our Contact page!