Tuesday, March 21, 2023

How To Redeem Cash Back Amex

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*WATCH ME* REDEEM ALL My Credit Card Rewards for Cash Back! (Amex Points, Chase Points & More!)

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How To Redeem Cash Back

How you redeem your cash back rewards depends on the rules of the card issuers program. For example, Capital One offers several cash back reward cards, and you can redeem your rewards as a check or apply the amount to your account as a statement credit. You can request your cash back online or using Capital Ones mobile app. In fact, you can configure your account to automatically redeem your rewards every time you earn a preset amount, starting at $25. You can also redeem your Capital One cash back for other options including gift cards and Amazon.com purchases, although your rewards can be worth more or less than you would have received as a check or statement credit.

Capital Ones options for redeeming cash back rewards are similar to other card issuers options, including U.S. Bank, Bank of America®, American Express and others.

A notable exception is the Costco Anywhere Visa® Card by Citi. With this card, your cash back rewards are only available in February as the last page on your February statement or via email if you have chosen the paperless option. You can use your certificate to make a purchase at a Costco store, or you can visit their customer service desk to redeem it for cash.

How To Make The Most Of Your Amex Blue Cash Preferred Card

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The Blue Cash Preferred® Card from American Express has long been a NerdWallet favorite with its industry-leading 6% cash back at U.S. supermarkets . It also offers 6% cash back on select U.S. streaming subscriptions, plus a generous 3% back on transit and at U.S. gas stations, and 1% cash back on everything else. Terms apply .

It has an annual fee: $0 intro for the first year, then $95. If you use the card regularly, your rewards should more than make up for the annual cost. To be certain you earn enough to pay the annual fee and far more, heres how to maximize value when carrying this card.

» MORE: Full review of the Blue Cash Preferred® Card from American Express

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How To Redeem Hotel Points And Airline Miles

Hotel rewards programs and airline frequent flyer programs offer points and miles that can be confusing to redeem. With airline frequent flyer programs, it can be extremely challenging to redeem your rewards for award flights at the lowest mileage levels. Thats because the major carriers American, Delta and United use variable pricing systems that increasingly correspond with the cash price of new reservations.

For example, it was once easy to redeem 25,000 miles for a domestic, round-trip ticket in economy, regardless of how much the ticket was selling for. But today, you could be charged more than twice as many miles for an expensive ticket or less than half the number of miles for a highly discounted ticket. Or you might find a few tickets available at a low mileage price, but not as many as you need.

Other carriers, however, such as JetBlue and Southwest, have frequent flyer programs that have more or less fixed values to their rewards. With these programs, you can redeem your rewards for any unsold seat, and the number of points required directly correlates with the price of the ticket. This makes it simple and easy to book as many awards as you want, but you never receive more than the nominal value of your points.

Take Advantage Of Discover It Benefits

How to redeem points using the BofA Premium Rewards card

In addition to offering top-level cash back rewards, the Discover it Cash Back credit card offers a number of additional benefits as well. Heres what you need to know to take advantage of every credit-building, debt-reducing and fraud-preventing feature that comes with your Discover it Cash Back card.

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Which American Express Card Is Best For You

With so many highly rated American Express cards, there isnt a best card, as the answer depends on your personal goals. All the Amex cards on our list are strong in their own way, offering unique benefits that cater to different people.

If youre looking for a card thats simple and earns cash back, then youll want to consider either the Blue Cash Everyday or the Blue Cash Preferred. With so many similarities between the two, the best option for you depends on how much you spend each year in certain categories, especially at U.S. supermarkets.

For those looking for travel perks, you cant go wrong with the Amex Platinum. But, if you dont think youll fully utilize all the benefits that come along with this pricey card, you might want to instead consider the Amex Green. Alternatively, the Amex Gold might serve as a happy medium between the two with a balance of perks, points and a moderate annual fee.

On the other hand, those who want a card that earns points or miles in a specific airline or hotel program and comes with perks tied to that airline or hotel will want to think about one of the Amex co-branded cards. If earning hotel rewards is important to you, then the Hilton Honors Aspire or are the way to go. And for the frequent or even leisure flyer, the Delta Gold Amex is a great go-to card for saving money on those pesky baggage fees.

Looking for the best overall credit card? Find out which cards CNN Underscored chose as its best credit cards of 2021.

The Platinum Card From American Express: Best For Luxury Travel Benefits

While travel isnt back to where it was before the pandemic, for those who have already hit the road again, being able to simplify your travel experience might be exactly what you need. The American Express Platinum card is the ultimate definition of luxury and comes with a slew of VIP perks that rival any card on the market but also a hefty $695 annual fee .

One of the best benefits of the Amex Platinum and an easy way to partially offset the annual fee is the up to $200 in annual airline fee credits. These credits can be used toward many incidental fees, such as checked bags, change fees and in-flight Wi-Fi, on the one carrier you select as your qualifying airline each year.

Other popular credits youll receive with the Amex Platinum each year include up to $200 in Uber Cash which can be used for Uber rides in the U.S. or Uber Eats orders up to $240 in annual statement credits on eligible purchases or subscriptions with Peacock, Audible, SiriusXM or The New York Times, an annual credit of up to $200 for prepaid bookings at Amex Fine Hotels + Resorts or The Hotel Collection properties made through American Express Travel and up to $100 toward purchases at Saks Fifth Avenue, split into portions of up to $50 in each half of the year.

Related: American Express adds new benefits to its Platinum card, increases annual fee.

Related: Score 100,000 bonus points with the American Express Platinum card.

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Travel Rewards Cards: Points And Miles

Instead of cash back, some credit card rewards programs are based around points. These can later be redeemed on a number of different items and services, varying from issuer to issuer. While you may have come across “points” or “miles,” these terms are interchangeable and will mostly operate in the same way.

The major difference among these various rewards credit cards is what you can redeem your points or miles for. For example, if your airline co-branded credit card rewards you with miles, you’ll most likely only be able to redeem those on airfare. When you see a program giving out points, it tends to allow for a more generous amount of freedom. Some points can also be turned into gift cards or cash back.

Whether your credit card collects frequent flyer miles or points, you have to keep in mind that it’s up to you to redeem them. While you earn points automatically, they won’t be turned into rewards without your due diligence. Many points and miles will expire, so you don’t want them to go to waste. To redeem your rewards, you will either log in to your online rewards portal or call the customer service line.

Points, just like miles, are designed with travelers in mind. While you can redeem points for other rewards, using them for travel tends to provide the greatest value. Below we highlight the three credit card reward programs based around points and miles: general travel rewards cards, airline cards and hotel cards.

Mbna Rewards Platinum Plus


Card details

  • No annual fee
  • Earn 4 points for every $1 spent on eligible restaurant, grocery, digital media, membership and household utility purchases during the first 90 days , and 2 points for every $1 spent on eligible purchases in those categories thereafter in both cases, these earn rates apply until $10,000 is spent annually in the applicable category. 1 point for every $1 spent on all other eligible purchases
  • Welcome offer: Get up to 10,000 bonus points
  • 5,000 bonus points after you make $500 or more in eligible purchases within the first 90 days of your account opening

  • 5,000 bonus points once enrolled for paperless e-statements within the first 90 days of account opening

  • Income required: No specific amount
  • This offer is not available for residents of Quebec. For residents of Quebec, please click here.

When it comes to choosing a cash back or travel rewards credit card, pick the one that offers the best return on your purchases and the best rewards for your lifestyle. Still undecided? You can always get one of each.

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Automatic Cash Back Redemption

Along with manually requesting a statement credit, check or direct deposit, a number of cards allow you to set up automatic cash back redemption. If your card allows automatic redemption, your cash back is generally distributed at set times or after youve earned a certain amount.

The Capital One Quicksilver Cash Rewards Credit Card, for example, allows you to schedule automatic cash back redemptions via statement credit or check at a set time once per year or once youve reached a cash back earnings threshold .

Even some cards designed for credit-builders, like the , allow automatic redemption as a statement credit, offering those looking to improve their financial habits a set-it-and-forget-it cash back savings tool that will periodically knock off a chunk of their credit card balance.

The Basics Of American Express Credit Cards

When it comes to earning rewards with American Express cards, the type of points you earn can vary from card to card, and this can play a big part in your decision on which card is best for you.

Some Amex cards earn what are known as Membership Rewards points, which can be transferred to 21 different airline and hotel partners and then used directly with those respective programs. These points are often called flexible rewards since you have a variety of redemption options, but youll need to know the rules of each specific program in order to really get top value for your points.

Other Amex cards earn points or miles in just one airline or hotel program, so you typically dont have the same flexibility to redeem them for other travel opportunities as you do with Membership Rewards points. But while these loyalty-specific points or miles can be more restrictive, youll sometimes get more perks with that credit card when traveling with the airline or hotel the card is tied to.

And if travel is not in your immediate future right now and you want to focus on earning as much cash as possible, there are a number of Amex cards that will earn cash back on every purchase you make. However, when you choose a cash back card, youre generally trading off the ability to get outsized value for your credit card rewards in favor of putting cash directly into your pocket.

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Best Cash Back Redemption Options

The key point to consider is whether your rewards lose any value when you redeem them in a certain way. You want to make sure you are getting the most value back, so be careful if you redeem for merchandise, which can be worth less than rewards for straight cash.

That said, unless your issuer offers a bonus for claiming your rewards as a statement credit instead of true cash back, you should simply stick to whichever option is most convenient.

One drawback to cash rewards is they often dont feel like actual rewards because they get swept up into your ongoing finances. If that bothers you, you might consider taking note of how much youre receiving in cash rewards, then rewarding yourself by spending that amount on something you want so that you feel like youre getting a reward.

Either way, thats the best aspect of cash back rewards: Its your decision.

You May Want To Choose Travel Rewards Instead Of Cash Back

Cash Back Calculator: AMEX Platinum Cashback Everyday

Its understandable that many credit card users are skeptical about redeeming their rewards for airline miles, hotel points or travel reservations. With the games that some airlines and hotels play with these programs, many savvy consumers have just given up on them and decided to earn cash back instead.

But what about those credit cards that offer you reward points that can be redeemed for a variety of options, including cash back, travel reservations and even frequent flyer miles? It turns out that you could receive far less value by opting for cash back than you would from other options.

Two of the most popular credit card reward programs, Chase Ultimate Rewards and American Express Membership Rewards, offer you far less bang for your buck in cash than you can receive from redeeming your points for travel reservations or airline miles.

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Use Points To Check Out Online At Major Retailers

When you check out online at a growing list of major retailers and enter your American Express card number, you can opt to pay in part or in full with points.

Merchants that currently let you pay with Amex points at checkout include:

  • Amazon
  • Saks Fifth Avenue
  • Staples

While promotions occasionally make this worthwhile for instance, there have been deals where you could save $30 at it’s generally a poor value of 0.7 cents per point.

Redeeming Cash Back As A Check Or Direct Deposit

A slightly smaller number of credit card rewards programs let you redeem your rewards for true cash back in the form of a check or direct deposit to your bank account.

Claiming your cash back in this way gives you a bit more leeway since you can save or spend your rewards however you like instead of having them locked into a particular card account.

As with statement credits, the requirements for requesting a check vary from card to card, with some issuers requiring you to have earned a minimum amount of cash back before you can request a check and others imposing relatively few restrictions.

Direct deposits tend to be a bit trickier across the board, especially if you dont already have a banking relationship with your credit card issuer.

The Bank of America® Customized Cash Rewards credit card, for example, will let you redeem cash back only as a direct deposit if you have a checking or savings account with Bank of America.

The Citi® Double Cash Card lets you redeem your cash back as a direct deposit only if you have a linked Citi account or a checking account from which youve paid a Citi credit card bill at least twice. Note that the Double Cash card requires you to have earned at least $25 in cash back to redeem as a statement credit or direct deposit.

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Cash Back Points Or Miles: Understanding The Different Credit Card Rewards

Advertiser Disclosure

Advertiser Disclosure: ValuePenguin is an advertising-supported comparison service which receives compensation from some of the financial providers whose offers appear on our site. This compensation from our advertising partners may impact how and where products appear on our site . To provide more complete comparisons, the site features products from our partners as well as institutions which are not advertising partners. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.

Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

Citi is an advertising partner

Without a doubt, you’ve come across credit cards that promise “5% cash back” or “3 points on all dining and restaurant purchases.” Points, percentages and miles are everywhere when it comes to credit card rewards. It may be challenging to comprehend the various offers without a firm grasp of the rewards systems or how much the points are worth.

Here in this guide, we help you make heads and tails of credit card points, miles and cash back. You’ll understand which type of credit card rewards suits your spending best and be able to shop for the .

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