When you use your credit card to pay for a purchase, all your purchases for a 30 day period become a bill you have to pay. If your total purchases are $550 on your Visa card, then you pay Visa $550. They give you nothing.

If you make purchases using a credit card that has a cashback program, then a percentage of what you spend is given back to you. Most credit card companies offer a cashback program that gives you 1% or 2%. The cashback money is there for you to use. You will have a few options, such as having your cashback money applied to your balance or you can request a check.

Credit card companies have business partners, such as restaurants or stores. You get a better deal if you use your cashback to buy a ‘certificate’ from one of their partners. The value of your cashback may be doubled. If the business is a place you frequent anyway, that is your best deal because you get more for your money.

Sometimes the credit card companies have special promotions where you can earn 5% cashback. They normally require you to use the card at specific businesses. They may call it s “travel promotion” and you need to use the card at hotel, motels and gas stations to earn the 5%.