Cashback is a type of reward program that credit/debit Card Companies and various big businesses offer to promote and boost their business. If you spent a certain amount of money or purchase products of a certain amount then you will qualify for the cashback. Whether cashback shows up on the bank statement or not depends on the card-issuing company. Some companies show the cashback on the bank statement while others don’t show it on the bank statement.
What is Cashback Offer?
Cashback is a type of incentive program and it has become very popular among credit and debit card users. This type of program was first introduced in the 90s when credit card users received 0.5% to 3.0% cashback on their monthly net spending. Credit and debit card companies run this type of program to increase the use of the cards. If you are a credit card user then you will get the cashback reward at the end of the month as a credit to your card.
On the other hand, if you are a debit card user, then you will receive cashback while making a purchase using your debit card. In order to qualify for a cashback offer, you have to fulfill some requirements like paying the credit card due every month, etc. Moreover, you should also keep in mind that credit cards that offer cashback generally have higher annual percentage rates.
How does Cashback Work?
The Discover card first introduced the cashback offer in 1986 as an incentive for existing customers to use the card more frequently as well as attract new customers. The cashback offer is different from reward programs. In a reward program, you get points for spending a certain amount of money and then redeem the points to get special rewards.
On the other hand, in a cashback program, you will get cash as a reward and it will be added to your credit card immediately after completing the purchase or full filing the cashback reward requirements. Moreover, if you use a debit card you can also receive a cash-back reward via direct deposit to your linked bank account.
Detail Process of Debit Card Cashback
The cashback process of a debit card is a bit different from the cashback process of a credit card. This is because, when you use a debit card you are using the funds directly from your bank account. So, when you request a cashback using your debit card, the merchant can either offer you the cashback from the original price of the product or charges the actual amount from the card and then give you an equal amount of cash from the register.
But, if the cashback offer is from the card-issuing company then the merchant’s payment terminals must have cashback functionality. It will help the card-issuing company track the transaction and cashback amounts separately. Then the card-issuing company will direct deposit the cashback amount to your linked bank account.
Detail Process of Credit Card Cashback
Various credit card issuing company offers cashback to their credit card users. Usually, they offer 0.5% to 3.0% cash back depending on the monthly transaction. Every credit card has a credit limit. If you spend a certain amount of your credit then you will qualify for the cashback offer. Moreover, you have to clear the due amount every month to qualify for a cashback.
If you fulfill all the requirements then you will qualify for the cashback offer. Some card-issuing company gives instant cashback while other companies give the cashback at the end of the month. You can check your credit card statement to see if there is any information regarding the cashback. Or, you can also contact the customer service of the card-issuing company to find out about the cash back rewards.
List of Best Cash Back Credit Cards
|Name||Regular APR||Credit Score||Annual Fee|
|Chase Freedom Flex℠||15.74% – 24.49% variable||Excellent, Good (700 – 749)||$0|
|Wells Fargo Active Cash® Card||16.49%, 21.49%, or 26.49% variable||Excellent, Good (700 – 749)||$0|
|Blue Cash Preferred® Card from American Express||15.49%-25.49% variable||Excellent, Good (700 – 749)||$95|
|Discover it® Cash Back||12.74% – 23.74% variable||Average/Good/Excellent||$0|
|Citi Custom Cash℠ Card||15.49% – 25.49% variable||Excellent, Good (700 – 749)||$0|
|Savor Rewards Credit Card||16.24% – 24.24% variable||Good/Excellent (700 – 749)||$95|
|Amazon Prime Rewards Visa Signature Card||14.99% – 22.99% variable||Good/Excellent (700 – 749)||$0 with Prime membership|
|Capital One® Walmart Rewards® Card||17.99% – 26.99% variable||Fair (650 – 699)||$0|
|My BJ’s Perks® Mastercard®||15.24% – 25.24% variable||Good/Excellent (700 – 749)||$0|
|Alliant Cashback Visa Signature Credit Card||12.49% – 22.49% variable||Excellent (750 – 850)||$0|
|Navy Federal Credit Union Visa Signature® Flagship Rewards Card||10.24% – 18.00% variable||Good/Excellent (700 – 749)||$49|
|Navy Federal More Rewards American Express® Card||9.90% – 18.00% variable||Good to Excellent (700 – 749)||$0|
|TD Double Up Credit Card||15.24% – 25.24% variable||Good/Excellent (700 – 749)||$0|
FAQs about Does Cashback Show up on Bank Statement
Does cash back show on the debit card?
Yes, in most cases, the cashback will show up on your debit card statement. However, it mostly depends on the card-issuing company. If you don’t see cash back on your statement then you can contact the bank customer care and find out their policy about the cashback.
Do cashback rewards on a credit card expire?
Usually, the cashback rewards on a credit card don’t expire as long as you are using your credit card. However, if you don’t use your credit card or if your credit account is not active then you won’t be able to use the cashback.
When do you receive your cashback from credit card companies?
The answer to this question depends on the card-issuing company as well as the cashback policy of the company. Some companies give instant cashback while other card issuing companies send the cashback at the end of the month.
Do debit cards have cashback?
Yes, nowadays most of banks offer cashback rewards for their debit card users. You can contact with your bank to find out all the details about the debit card cash back.
Can chargebacks be filed on the amount of a cash back transaction?
No, all the credit card issuing companies don’t file chargebacks on the cashback portion of the transaction.
Last Updated on August 7, 2022 by Ana S. Sutterfield
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.