Credit card companies that offer a cash back reward programs offer a percentage of charges made on the cards back to the card holder. Credit cards that offer rewards often charge higher annual fees than cards that do not offer rewards, according to Forbes.
Credit card rewards vary from company to company based on the returns to the consumer for every dollar spent. Cash back cards are better for consumers who pay off their card bills completely at the end of the month as interest on the balance will negate the rewards earned.
Most card companies that offer rewards usually measure them in points. While the points can add up for special offers and a cash reward, Forbes warns that consumers may be moved to spend more than they normally would.
Some cards will offer a special introductory for extra, or bonus points, which will expire after a given time. Forbes advises consumers to use special offers as a guide if the extra points are in a category where the consumer spends their money.
It's important when shopping for a cash back card to check for limitations. Some cards may put limits on the amount of points that can be accrued, points can only be accrued for specific purchases or the minimum amount the consumer must spend before accruing points.