Just as the moniker says, a cash back program offers a payment in cash, or, a rebate percentage of your purchases on the card. To get a consumer’s loyalty, the card company offers the card holder cash back each time they use the card. A straight cash reward is one of the simplest forms of buying brand loyalty and it works.
What We'll Cover
Cash back from credit cards is one hook the card companies like to use to entice the consumer into using their card. Depending on the card and the promotion, deciding which one is the best choice can take a bit of comparison.
Although it will not make you rich it will provide a small saving on each purchase that you make. Unlike other reward programs such as air miles or points cards, there are no requirements to track how many points or miles are being accumulated. The reimbursement is immediate at the time of purchase. This is quite different then some other rewards programs that offer points for purchases. Points have to be accumulated and then used toward merchandise.
This credit card is no longer available
Note: VentureOne Rewards Credit Card Replaced The No Hassle Rewards Credit Card
The No Hassle Rewards Credit Card from Capital One offers a cash back program. They offer 2% cash back on purchases at gas stations and major grocery stores. This can add up to some significant savings. For example if a regular house hold has a yearly expense of $7200 ($600 per month) of groceries and gasoline that would translate to yearly cash back of $144. Not a bad way to pad the savings account or save a bit of money just for using a credit card. It also offers a 1% cash back incentive for all other purchases. Whether it is for clothing, theater tickets or airline travel the 1 % offer is available. They are quick to point out that no cash back bonus will be advanced on checks used to access the account, finance charges, fees or service charges or ATM withdrawals.
With a no cap limit on the cash back this card encourages consumers to spend more to get more cash back.
Getting the Cash
Getting the cash is as simple as calling the toll free number or making the request online. It is important to note that only accounts in good standing will receive the cash back rewards. Accounts will not receive cash if:
• They are past due.
• Over the limit.
• Suspected of fraudulent activity.
• Restricted.
• In bankruptcy settlement.
The cash will be available and will not expire as long as the account is open. If your account is closed the un-redeemed cash will be lost when the account is closed.
Other Benefits
In addition to the 2% cash back on gasoline and grocery purchases, and the 1% cash back on other uses, this card offers:
• 0% APR until April 2011. After April 2011, a 14.9% APR variable rate
• 14.9% APR on transfers
• No transfer fees
• No annual fees
The Fine Print
As with most cards there are other fees and charges that should be considered. The APR on purchases is listed as 14.9% until April 2011. However, the APR for a cash advance is 24.9% and a Penalty APR is currently equal to 29.4%.
Other fees, such as a $0.50 financial charge will be imposed monthly on the account. In addition, there are other fees:
| Cash advance fee | Late payment fee |
| 3% of the amount of the cash advance with a minimum of $10. | $15 late fee for accounts of $0-$99. $29 late fee for accounts of $100 – $249.99. $39 late fee for accounts greater than $250. |
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