Cash back credit card guide

Although similar in theory, cash back credit cards vary: percentage rates, overall benefits, participating merchants, and more. No two are the same, so selecting the right cash back credit card should be done with care—and an honest appraisal of the applicant's financial practices.

Most cash back cards offer 5% cash back on “everyday” purchases made at grocery stores, pharmacies and gas stations. Some offer tiered programs, where the value increases proportional to the amount charged. Sill others are seasonal, which means the benefits change throughout the year. Because they offer better rewards than other credit cards, cash-back cards tend to have higher APRs, so if the cardholder makes a big purchase and spreads the total across many payments, any potential profit will be negated in the accrued interest.

The method of redeeming cash rewards varies by issuer: some issuers automatically process the cash back, while others require the cardholder to initiate the process through a phone call. It's important for the cardholder to know how this step works—it’s not uncommon for the cash rewards to "expire" because the cardholder was unaware of how to redeem.

Once processed, the cash can also be delivered in several ways: The cardholder's account is credited, a check is mailed to the cardholder, a gift certificate or card is issued, or by direct deposit, usually only if the cardholder has a bank account with the issuer.

Below is our list of the best cash back credit cards available online. Compare the benefits of each card and apply for the card offer that best fits your needs.

Blue Cash Everyday^SM from American Express

Earn a $100 cash back bonus after spending $1,000 in eligible purchases in the first 3 months of Cardmembership 0% intro APR on purchases for 12 months, flexibility to pay over time Get 3% cash back at supermarkets, 2% cash back at gas stations and department stores, and 1% cash back on all other purchases No spend minimum, No enrollment, and No rotating rewards categories Get a $25 Referral Bonus for each friend or family member who is approved for the Card No annual fee, flexibility to pay over time

Citi® Dividend Platinum Select® Visa® Card - $200 Cash Back

$200 cash back after $500 in purchases within the first 3 months of account opening 5% cash back on fitness club, health care, and utilities purchases from 1/1/2012 to 3/31/2012 upon enrollment. Each quarter, you can enroll to earn additional cash back in popular categories. 5% average cash back at select merchants through Citi Bonus Cash Center® Full 1% cash back on all other purchases and eligible cash advances. No annual fee*

Citi® Dividend Platinum Select® Visa® Card - $100 Cash Back

$100 cash back after $500 in purchases within the first 3 months of account opening 0% Intro APR on Balance Transfers and Purchases for 12 months. After that, the APR will be 12.99%-22.99% variable based on your creditworthiness* 5% cash back on fitness club, health care, and utilities purchases from 1/1/2012 to 3/31/2012 upon enrollment. Each quarter, you can enroll to earn additional cash back in popular categories. Full 1% cash back on all other purchases and eligible cash advances. No annual fee*

Citi ThankYou® Preferred Rewards Card - $150 in Gift Cards

$150 in gift cards - When you redeem the 15,000 bonus ThankYou® Points received after $1,000 in purchases within 3 months of account opening 5 ThankYou Points for every $1 spent on purchases at gas stations, supermarkets and drugstores for 12 months and 1 point for every $1 spent thereafter and for all other purchases* Enjoy no limit on the number of points you can earn Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more No annual fee*

Citi ThankYou® Preferred Rewards Card - $250 in Gift Cards

$250 in gift cards - When you redeem the 25,000 bonus ThankYou® Points received after $2,000 in purchases within 3 months of account opening Earn 1 point for every $1 you spend on all purchases Receive an anniversary bonus every year you're a cardmember No expiration and no limit on the points you can earn Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more No annual fee*

Discover® More® Card - Balance Transfer Fee*

0% intro APR on purchases for 6 months, then the variable standard purchase APR of 10.99% - 20.99%* 0% intro APR on balance transfers for 18 months, then the variable standard purchase APR of 10.99% - 20.99%* 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply* Discover is ranked #1 in customer loyalty--15 years in row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds $0 Fraud Liability plus automatic mobile and email fraud alert options Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Discover® More® Card - No Balance Transfer Fee*

Limited Time Offer - $0 Balance Transfer Fee!* 0% intro APR on purchases and balance transfers for 12 months, then the variable standard purchase APR of 10.99% - 19.99%* 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply* Up to 20% Cashback Bonus at popular retailers when you shop online through Discover.com Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Discover® More® Card

0% intro APR on purchases and balance transfers for 15 months, then the variable standard purchase APR of 10.99% - 20.99%* 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply* Up to 20% Cashback Bonus at popular retailers when you shop online through Discover.com Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds $0 Fraud Liability plus automatic mobile and email fraud alert options Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Discover® Open Road Card

Receive a $150 Restaurant.com Gift Certificate with first purchase 0% intro APR on purchases and balance transfers for 12 months, then the variable standard purchase APR of 10.99% - 20.99%* 2% automatically at any gas station and any restaurant all year long* Plus, up to 20% Cashback Bonus at popular online retailers when you shop through Discover.com Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Discover® Motiva Card

Earn Cashback Bonus® for your good credit management 0% intro APR on purchases and balance transfers for 15 months, then the variable standard purchase APR of 10.99% - 20.99%* Up to 20% Cashback Bonus at popular retailers when you shop online through Discover.com Discover is ranked #1 in customer loyalty--15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report) 24/7 access to a U.S.-based Account Manager within 60 seconds $0 Fraud Liability plus automatic mobile and email fraud alert options Great rewards with no annual fee, no rewards redemption fee, and no additional card fee *Click apply to view rates, fees, rewards, limitations and other important information

Citi® Diamond Preferred® Card

0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 11.99%-21.99% based upon your creditworthiness.* 24/7 access to personalized concierge service providing assistance in booking hotel, flights, concert tickets and much more Special access for Citi cardmembers to purchase presale tickets, preferred seating, VIP packages, and other unforgettable live entertainment experiences through Citi Private Pass® $0 liability on unauthorized purchases and Citi® Identity Theft Solutions No annual fee*

Citi ThankYou® Premier Rewards Card

Earn 30,000 bonus ThankYou® Points after $2,000 in purchases within 3 months of account opening - enough for $300 in gift cards 1 ThankYou Point for every $1 you spend on purchases Earn points for the miles you fly when you purchase a ticket with your Citi ThankYou Premier Card No foreign transaction fee on purchases* Annual complimentary domestic companion ticket, within the continental USA, when booked through our travel benefits provider, Spirit Incentives No points cap and no expiration of points

Chase Freedom^® Visa - $100 Bonus Cash Back

This offer is for people with a good to excellent credit history which means, among other things, that your credit history is clear of bankruptcy and seriously delinquent accounts Earn $100 Bonus Cash Back after you make $500 in purchases in your first 3 months 0% Intro APR for 12 months on balance transfers and 6 months on purchases 5% Cash Back on up to $1,500 spent at gas stations and on Amazon.com from 1/1/12 - 3/31/12. You'll enjoy new 5% categories every 3 months like grocery stores, restaurants and even airlines. It's free and easy to activate your bonus each quarter! Unlimited 1% Cash Back on all other purchases and up to an additional 10% Cash Back when you shop online at select merchants through Chase No annual fee and rewards never expire

Visa® Black Card

Made with carbon, not just another piece of plastic; Membership is limited 24-hour concierge service at your disposal Unlimited VIP airport lounge visits Exclusive rewards program; 1% cash back or airfare on any airline - no blackouts or restrictions Accepted globally; zero liability protection against unauthorized purchases

TrueEarnings® Card from Costco and American Express

American Express® Card and Costco Membership Card in one- with no annual fee for Costco members Cash back on the things you buy: 3% for the first $3,000 in annual gasoline purchases (1% thereafter), 2% for restaurants, 2% for travel, and 1% everywhere else, including Costco Rated 4.5 out of 5 stars in overall satisfaction by current TrueEarnings® Cardmembers from Costco and American Express

Citi ThankYou® Card

Enjoy 0% Intro APR on Balance Transfers and Purchases for 15 months. After that, the variable APR will be 12.99% - 22.99% based upon your creditworthiness* Plus earn 1 ThankYou Point for every $1 you spend on purchases Earn an anniversary bonus on points earned from purchases every year* Enjoy no limit on the number of points you can earn Redeem ThankYou Points for merchandise, travel rewards, gift cards, cash and more No annual fee*