If you’re anything like me, you get a rush out of using your credit cards to maximize travel points or cash back on everyday purchases.
And with the holiday shopping season in full swing, many of us are racking up even more points as we shell out hundreds on gifts for loved ones. Shoppers spent $9.8 billion online on Black Friday, according to Adobe Analytics. The National Retail Federation also estimates shoppers will spend a record $966.6 billion this holiday season.
One way I like to save on my holiday purchases is by taking advantage of my credit card providers’ cash-back rebate programs. You can find these offers -- sometimes as high as 20% -- through your credit card or mobile banking account for purchases made directly with partnering retailers.
I use this feature year-round. But it also helps me save more cash on top of existing sales during the holidays.
What are cash back rebates and how do they work?
Cash-back rebates are personalized offers made to credit card holders by a bank and its partnering list of merchants. Offers range from groceries and restaurants to apparel and travel and more. It’s a win-win scenario for all parties: the retailer gets the business, the credit card company collects the merchant fees, and the cardholder gets the cash back.
Not every credit card issuer offers cash-back rebates. But some that do are Chase, Capital One, Bank of America, Citi and American Express. Offers are tailored toward your spending habits on a card, but you need to use the offer by the specified expiration date. Each offer also has its own terms and conditions, so be sure to click on the offer to see how you can qualify.
Rebate payouts vary from cash back as a percentage of a purchase to a flat cash-back offer after reaching a spending quota. So for example, I currently have an offer for $150 back when I spend $999 or more at HP, which could come in handy if you’re in the market for a new laptop.
AmEx also has offers where qualifying purchases you make at a partnering merchant let you earn bonus membership loyalty points. Purchases I make at Nike, New Balance and Lululemon this holiday season will allow me to rack up bonus rewards points on purchases I made with my Gold Card.
For me, the Amex Gold Card’s $250 annual fee more than pays for itself through rewards, cash-back rebates and other perks. But no-annual-fee cards also offer this feature. I receive lucrative offers on my no-annual-fee Chase Freedom Unlimited® card, Capital One SavorOne Cash Rewards Credit Card* and Capital One Quicksilver Cash Rewards Credit Card*. Rebates typically show up on your account within 14 days after a purchase is posted, in my experience, but can take longer depending on your bank.
Where do I find cash-back offers in my credit card app?
Finding rebate offers available through your financial institution is as simple as logging on to your account, clicking a tab or scrolling down on your account dashboard until you see a list of merchant cash-back offers.
On the AmEx mobile app, there is a dedicated “Offers” tab at the bottom of the screen where you can find current deals. But on both Chase’s and Capital One’s app, users have to scroll down until they see Chase Offers or “Earn Credits for Shopping” on Capital One.
Typically these offers work as cash rebates on top of miles or cash back you’re already earning by using the credit card.
If I use my current 5% cash-back offer on Walmart.com through my Chase Freedom Unlimited credit card this week to buy a pair of Bose QuietComfort Earbuds II on sale for $199 (as of Nov. 30, 2023), I would receive a 5% rebate up to $5 on top of the 1.5% cash back the card earns on every purchase. That works out to just under $8 back, versus just earning $2.99 with the 1.5% cash back.
If you can capitalize on these offers, they could add up to meaningful savings this holiday season.
The big caveat here is that you should not overspend just to earn a cash-back offer. If you can’t afford to pay your bill in full at the end of each month, the interest you accrue will devalue and likely offset any rewards earned.
What kinds of offers are available?
Credit card rebate categories really run the gamut. I’ve added offers to my cards across a variety of categories like streaming, groceries, retail, home improvement and travel in 2023. Offers rotate often so it’s good to check every couple of weeks to see what’s available and add what you like or think you may use to your card.
Each offer has its own terms and conditions, but the most common one you’ll encounter is a cap on the dollar amounts or statement credits. You might be able to earn 8% cash back, but only up to a certain dollar amount. Purchases also typically need to be made directly with the merchant.
As an example, if you’re buying a plane ticket to be with family this holiday season, you might be required to add the offer to your card and buy the ticket directly from an airline. I’m currently able to receive $50 back on a JetBlue flight of more than $200, as long as I purchase it directly with the airline, and not a third-party site like Expedia or Booking.com.
While most offers I use end up being a one-time deal, others can be used multiple times to maximize your rewards. If I use Google Pay three times on everyday purchases by Jan. 11, for example, I can earn $10 back. I can also earn $50 by making two separate $100 purchases with Fanatics for the crazy sports fans in my life this holiday season.
How much can I save with cash-back offers?
How much you can save depends on several factors, including how many offers you want to take advantage of and what kinds of offers you actually get.
Some offers can be as little as 3%, so if you have a card that offers a higher rewards rate for a certain category, do the math to figure out which card makes more sense. Also remember that AmEx offers rewards points with retailers in exchange for a qualifying purchase. So if you would get more value out of having cash back than loyalty points with a retailer, that’s another reason to use another card.
In my experience, many of the best offers start at around 5% cash back. But sometimes you can get from 10% to 20% back. In the past, I’ve seen offers for a flat $30 statement credit for a one-time purchase at wholesale clubs like BJs -- perfect for a holiday dinner -- and a $40 cash-back offer for a one-year Walmart Plus membership.
The bottom line
Cash-back rebate programs are a great way to save a few extra dollars if you are willing to do the leg work. This holiday season, you can save on gifts, groceries for festive parties and even holiday travel. There may not always be an offer for the specific merchant you’re looking for, but it doesn’t hurt to check.
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*All information about the Capital One SavorOne Cash Rewards Credit Card and Capital One Quicksilver Card has been collected independently by CNET and has not been reviewed by the issuer.
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