Some cashback cards are associated with certain shops and you’ll usually earn more cashback for shopping in these affiliated stores or supermarkets. Other cards may offer a flat rate of cashback regardless of where you shop, or they could reward you with differential cashback rates at a variety of retailers.
How you get your cash reward depends on the card provider. It could be in the form of vouchers or money into your bank account, or it could be credited back to your card account. Some card providers will even give you the option of turning your cashback into a charitable donation.
There may or may not be a cap on how much cashback you receive, so always check the terms and conditions before you sign up for this type of credit card – or you could end up disappointed.
Like other types of credit card, there’ll be a limit to how much you can spend on a cashback card. If you go over that limit, you may end up with a charge and it could affect your credit rating. In some instances, you might even have your account closed by the card provider.