# Cash back from Credit Cards



## Andi (Jul 18, 2010)

I'm sure this has been addressed before but in looking back through the threads I could not find it. If you can tell me where it is or give me information on which credit card gives you the best deal on cash back I would appreciate it.

Andi


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## Patri (Jul 18, 2010)

I only know about Discover. We get enough back each year to equal at least one plane ticket. It never feels like the same thing, but it is.


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## Karen G (Jul 18, 2010)

I think getting cash back on a credit card may trigger a very high interest rate and the calculation of the interest starts immediately.  On purchases, I think there's no interest if you pay it off at the end of the month. But taking cash is different. Best to check with the card provider.


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## Rose Pink (Jul 18, 2010)

Each card is different and has different tiers and different promotions.  When I was researching, I concluded that AMEX had the best rate for me.  However, they couldn't get a card to me in time for a major expenditure (DD's tuition) so I went with the Visa offered by my credit union.  It is a very simple 1% and it is accepted almost everywhere that accepts credit cards (except Costco--so Costco doesn't get much business from me).  

I could get more if I was willling to invest the time to play the system but I'm just too tired and not inclined to do that.  You do have to pay in full each month or the interest can wipe out your cash back.  The convenience of seeing my cc balance daily when I check my checking account on-line is nice.  I can transfer money anytime I think my cc balance is getting too high.  I love the simplicity and convenience.

In short, there is no one "best" card for everyone.  Look _where_ you spend the most money to see which cards they accept.  No credit card is going to be helpful if the merchant doesn't accept it.  Decide _what_ you spend money on.  Perhaps a card that pays more for those types of purchases would suit you best.  I believe Discover has "specials" where they target a certain type of store with a higher %age cash back for a set period of time.  They may pay more for grocery stores one month, more for clothiers another month.  But Discover isn't always accepted so take that into mind.


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## DeniseM (Jul 18, 2010)

There is some good info. in the old posts about this -  http://www.google.com/search?client=gmail&rls=gm&q="best credit card"site:tugbbs.com

We actually prefer one that generates airline miles.


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## MichaelColey (Jul 18, 2010)

DeniseM said:


> We actually prefer one that generates airline miles.


I prefer airline miles to cash back (because I value those miles at more than a penny each), but I take it one step further.  My preferred card is the Starwood Amex, which earns 1 Starpoint per dollar spent.  You can transfer 20k Starpoints to get 25k airline miles with most airlines, so you effectively earn 1.25 airline miles per dollar spent, plus you have the flexiblity of not being tied to one airline.  And most people find the hotel stays (especially Cash & Points) to be an even better deal than the airline miles, although I suspect that wouldn't be the case for timesharers.  (It can be useful to fill in days around a one-week timeshare stay, though!  We're doing that next month in Kauai.)


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## MULTIZ321 (Jul 18, 2010)

Andi,

Check out www.bankrate.com

On their home page, click on the "credit cards" tab toward the top of the page - lots of comparative info.


Richard


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## thheath (Jul 18, 2010)

If you are a Costco executive member with their AMX card you get 3% back on most purchases.  It is one of the best deals I've seen.


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## Rose Pink (Jul 18, 2010)

The problem with AMEX is that, although the rewards may be higher, they are not accepted by many merchants.  That limits your rewards if you are trying to use it for most of your spending.  

Of course, you can use a different rewards card such as a Visa or Discover for those merchants who don't accept AMEX, but most cards have a build-up system meaning the higher rewards come after you've spent a certain amount of money.  If you  have to build up on several cards, you are losing rewards, IMO.


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## Former Cruiser (Jul 18, 2010)

Our VISA Signature Card give great cash back incentives.  For the best deal you have to pay a yearly fee, but I've earned that back plus much, much more.  My favorite deal is when I collect $200 they will send me a check for $250!!  Right there I've made my yearly fee, which is only $30.


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## Ken555 (Jul 18, 2010)

Rose Pink said:


> The problem with AMEX is that, although the rewards may be higher, they are not accepted by many merchants.



I'm not sure where you shop, but AMEX is accepted by 95%+ of the places I go. In fact, my last MC bill had charges from only one retail (and one business vendor which doesn't accept AMEX as they have a sweetheart deal with Visa/MC instead... sort of like Costco has with AMEX).


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## Ken555 (Jul 18, 2010)

thheath said:


> If you are a Costco executive member with their AMX card you get 3% back on most purchases.  It is one of the best deals I've seen.



"Most purchases"? 3% is only offered on gasoline and restaurant purchases. To be clear, the details are:



> Earn Cash Back - 3% for gasoline, for annual gasoline purchases  of up to $3,000 (1% thereafter), 3% for restaurants, 2% for travel, 1%  everywhere else, including Costco.
> No  Annual Fee with your paid Costco Membership.


The business card offers 4% back on gas up to $6,000; 1% thereafter.


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## Rose Pink (Jul 18, 2010)

Ken555 said:


> I'm not sure where you shop, but AMEX is accepted by 95%+ of the places I go. In fact, my last MC bill had charges from only one retail (and one business vendor which doesn't accept AMEX as they have a sweetheart deal with Visa/MC instead... sort of like Costco has with AMEX).


It just seems to me that I often see signs indicating that the merchant doesn't accept Amex.  DH used to have to use Amex for his business expenses.  He hated it because he couldn't use it much of the time and had to pay out-of-pocket and submit an expense report.  Maybe things are different now.  

As I mentioned previously, the OP should check where she usually shops to see which, if any, cards are accepted.  That will help with her choice of card.


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## DeniseM (Jul 18, 2010)

I think it depends on where you shop.  I find that small independent merchants sometimes don't accept American Express but all major stores do.  I use the Hawaiian Airline Visa as my back up card, when a store doesn't accept AMEX.


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## MULTIZ321 (Jul 18, 2010)

Amex fees to the merchant are typically much higher than fees from other cards (e.g., Visa, Master Card, Discover) which is why many merchants don't accept AMEX - makes a big dent in the bottom line.


Richard


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## rickandcindy23 (Jul 18, 2010)

I am pretty excited about our new Capital One Venture Visa Card.  

We get 2% back on all purchases to use toward airline tickets.  We got a sign-on bonus, too.  We can buy airline tickets wherever we want (no more first class tickets for anything), then we get a credit for the purchase when we have the money built up.  

We have only had it for about three months and already have 41K miles built up, about $20K spent, and that's $420 off our next ticket purchase.  They also have gift cards to major restaurants, but we probably won't get those.  

Capital One didn't charge any transaction fee for our Australia RCI Points 
MF's, which saved me about $15 from last year (can't really remember).


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## Ken555 (Jul 18, 2010)

MULTIZ321 said:


> Amex fees to the merchant are typically much higher than fees from other cards (e.g., Visa, Master Card, Discover) which is why many merchants don't accept AMEX - makes a big dent in the bottom line.
> 
> 
> Richard



This isn't true any longer. It was true for a long time, but in the last few years AMEX has become much more competitive.

In fact, my business pays AMEX less than business Visa/MC cards (and the problem for the merchant is that we never know if it's a business or personal Visa/MC being used for a purchase until we see our statement at the end of the month from our merchant provider).


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## MULTIZ321 (Jul 18, 2010)

Ken555 said:


> This isn't true any longer. It was true for a long time, but in the last few years AMEX has become much more competitive.
> 
> In fact, my business pays AMEX less than business Visa/MC cards (and the problem for the merchant is that we never know if it's a business or personal Visa/MC being used for a purchase until we see our statement at the end of the month from our merchant provider).



Good to know. I haven't been involved in the retail end in the past few years, so I wasn't aware of Amex fees becoming more competitive.

Thanks for the info.

Richard


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## MuranoJo (Jul 18, 2010)

MichaelColey said:


> And most people find the hotel stays (especially Cash & Points) to be an even better deal than the airline miles, although I suspect that wouldn't be the case for timesharers.  (It can be useful to fill in days around a one-week timeshare stay, though!  We're doing that next month in Kauai.)



Michael, I have a bunch of Starwood points I need to use and was thinking about this same plan just today--to add a few days or a week before or after a week at the BI (maybe on another island).  After accumulating these points after some time and never using them, any pointers for getting HI just over a year out?


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## Liliana (Jul 18, 2010)

Ken55 I think Thheath was referring to this perk regarding Costco Executive Membership

Executive Membership is our highest level of membership. Executive Members enjoy *an annual 2% Reward on most Costco purchases*, as well as additional values on member services, such as lower prices on check printing, payroll services and identity protection; an account bonus for money market and online investing accounts; free roadside assistance for vehicles covered through the auto insurance program; and extra travel benefits.

This is in addition to the AMEX card rewards in March??. I just got my reward check last month and was pleasantly surprised.


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## DeniseM (Jul 18, 2010)

muranojo said:


> Michael, I have a bunch of Starwood points I need to use and was thinking about this same plan just today--to add a few days or a week before or after a week at the BI (maybe on another island).  After accumulating these points after some time and never using them, any pointers for getting HI just over a year out?



Why don't you use them for airfare to Hawaii?


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## Ken555 (Jul 19, 2010)

Liliana said:


> Ken55 I think Thheath was referring to this perk regarding Costco Executive Membership
> 
> Executive Membership is our highest level of membership. Executive Members enjoy *an annual 2% Reward on most Costco purchases*, as well as additional values on member services, such as lower prices on check printing, payroll services and identity protection; an account bonus for money market and online investing accounts; free roadside assistance for vehicles covered through the auto insurance program; and extra travel benefits.
> 
> This is in addition to the AMEX card rewards in March??. I just got my reward check last month and was pleasantly surprised.



Exec members have always (?) received 2% from purchases at Costco. AMEX has nothing to do with that aspect of your Costco membership. I get my check every year...


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## thheath (Jul 19, 2010)

Costco Executive members earn 2% back on Costco purchases. 

Costco American Express card holders earn the following:

•Earn Cash Back - 3% for gasoline, for annual gasoline purchases of up to $3,000 (1% thereafter), 3% for restaurants, 2% for travel, 1% everywhere else, including Costco.1
•No Annual Fee with your paid Costco Membership.
•The TrueEarnings® Card serves as both your American Express Credit Card and your Costco Membership Card.
•The flexibility to pay charges over time.
•No limit on the Cash Back earned.


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## Skinsfan1311 (Jul 19, 2010)

thheath said:


> If you are a Costco executive member with their AMX card you get 3% back on most purchases.  It is one of the best deals I've seen.



Agreed



Rose Pink said:


> The problem with AMEX is that, although the rewards may be higher, they are not accepted by many merchants.  That limits your rewards if you are trying to use it for most of your spending.



I seldom have problems with merchants not accepting AMEX.    A buddy of mine, however, has a Discover card and he finds that quite a few merchants don't accept it.




Ken555 said:


> I'm not sure where you shop, but AMEX is accepted by 95%+ of the places I go. In fact, my last MC bill had charges from only one retail (and one business vendor which doesn't accept AMEX as they have a sweetheart deal with Visa/MC instead... sort of like Costco has with AMEX).



Agreed....coupled with an Executive Costco membership, the AMEX is the way to go for us.    We use it everywhere, and shop Costco a lot.     The rebate check(s) pay for my annual golf vacation in Myrtle Beach:whoopie:


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## K2Quick (Jul 19, 2010)

For a pure cash-back card, I think this is the best option:

http://personal.fidelity.com/products/checking/content/amex_rewards_card.shtml.cvsr?showcard=all

Gives you 2% back on all purchases.  It does require you to have a Fidelity brokerage account (but in my biased opinion, Fidelity is the best brokerage out there).

I personally carry the Starwood Amex card.


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## MichaelColey (Jul 19, 2010)

muranojo said:


> Michael, I have a bunch of Starwood points I need to use and was thinking about this same plan just today--to add a few days or a week before or after a week at the BI (maybe on another island). After accumulating these points after some time and never using them, any pointers for getting HI just over a year out?


Look for Cash & Points - those usually give the best value and stretch out the points.  If you're staying 5 days or more, use the 5th Night Free offer (although at that length, a timeshare stay probably makes more sense).  If you need extra space, call in to see if you can get a upgraded room or a suite for extra points.  We spent 2 nights in Venice earlier this year and it was 20k points for a standard room or 22.5k points for a Junior Suite.  It was VERY MUCH worth the extra points.


DeniseM said:


> Why don't you use them for airfare to Hawaii?


That's another great option, too, especially if you like to fly First Class.  Paying cash, FC is usually 4-5 times higher than coach.  Paying with miles, it's "only" double.  Domestic (48 continental states) coach often isn't a good redemption, since you can often find airfare for under $250 (vs. 25k points), but International (and Hawaii) and/or First Class usually gives great value.  If you learn the ins and outs of the FF programs, you can really do great.  We flew US Airways in Envoy (their international business class) for 55k miles per person to Europe earlier this year, taking advantage of several promotions.

FWIW, when you're looking for the best card to use for specific categories of purchases, here's a post that I keep updated on FlyerTalk with the best reported deals:

*Which Card to use for Specific Categories?*


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## Ken555 (Jul 19, 2010)

MichaelColey said:


> Domestic (48 continental states) coach often isn't a good redemption, since you can often find airfare for under $250 (vs. 25k points), but International (and Hawaii) and/or First Class usually gives great value.



FYI, I transferred another 60k StarPoints to US Air with their latest promotion, since with the bonus I only end up "paying" 22.5k StarPoints for each RT to Hawaii (at 40k; I try to get United non-stops and pay to upgrade to Economy Plus). I find this about as valuable as flights to Europe in business.


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## travelguy (Jul 19, 2010)

*Costco AND Amex SPG*

You do not need to use the Costco Amex to get the Executive member 2% back.

I am a Costco Executive Member AND purchase everything at Costco with my AMEX SPG card.  This gives me the best of both worlds - 2% back on all Costco purchases and SPG Points/Miles on all purchases as well!!


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## Ken555 (Jul 19, 2010)

travelguy said:


> You do not need to use the Costco Amex to get the Executive member 2% back.
> 
> I am a Costco Executive Member AND purchase everything at Costco with my AMEX SPG card.  This gives me the best of both worlds - 2% back on all Costco purchases and SPG Points/Miles on all purchases as well!!



That's what I do...works great. Still, the Costco Amex cash back card isn't necessarily the best cash back card out there, as it really only provides 1% on most purchases (other than gas, dining, etc as detailed in my post below). 

Getting back to the OPs question...is there a better cash back card? AMEX blue? CapOne? Other?


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## LisaRex (Jul 20, 2010)

The return I get on miles is far greater than what I'd get earning cash back.  So far we've redeemed over $12M worth of airline tickets to Hawaii for a fraction of that in fees, including transfer fees, etc., when they run bonuses for transferring miles.


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## DeniseM (Jul 20, 2010)

We use our points for yearly tickets to Hawaii, too.  Even though it's a fairly short flight from CA, tickets are expensive when we go during peak season.


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