Is There a Minimum Amount for Cashback Rewards?

Your Cashback Minimum Depends on the Conditions of Your Specific Card

If you hold a credit card, there is a decent chance that there is some form of rebate or rewards program attached to that card.

Issuers including Bank of America, Chase, Discover, Capital One and American Express, just to name a few, typically offer rewards as an incentive for using your card frequently. These rewards might include airline miles, hotel points, gas credits, or in some cases, cashback.

Most card issuers have a minimum amount which a cardholder can be awarded in the form of cashback. Therefore, there is no one correct answer here, but rather just different conditions depending on the card.

Cashback Reward Rate

First it’s important to keep in mind that there are quite a few different factors which determine the particulars of your card’s specific reward offerings.

Cashback credit cards started out with a very simple flat, fixed percentage rate, such as 1% back on all purchases. However, many cards now allow you to earn cashback at a different rate for different purchases. For example, banks often award cashback points for essentials such as groceries and gasoline at a higher rate than most other purchases (sometimes as much as 6% cashback depending on the card).

Minimum Points

Many card programs award cashback using a points system. A commonly used rate of exchange is $0.01 = 1 point; therefore, each penny you spend is worth one point.

There are a few variables which govern your cashback reward:

  • Is your cashback awarded based on a flat percentage?
  • Does your bank offer cashback multipliers for certain purchases such as gas or groceries?
  • What is the timeframe allowed to redeem cashback?

Some cards might allow cardholders to collect cashback with no minimum amount, while others could be as much as a $50 minimum (or $5,000 worth of purchases at a rate of 1%). You will need to find out the way in which your cashback is awarded, then find if there is any minimum threshold required, as well as the timeframe allowed to reach that point (typically between 3-5 years). Check here for a list of some of the most commonly used cards’ minimum cashback thresholds.

Do My Rewards Expire?

Again, that depends. For certain reward programs, your points never expire, while in other programs, the points will expire after a predetermined amount of time.

In most cases, cashback rewards have no expiration date, so long you maintain the account in good standing. Examples include American Express Membership Rewards, Chase Ultimate Rewards and Capital One Venture Rewards.

Airline credit cards, such as the Southwest Airlines Rapid Rewards® Premier Credit Card, as well as hotel credit cards typically have an expiration date somewhere between 12-24 months. However, in most of these cases, the time limits refer to inactivity, rather than earning date. You can keep your rewards active by simply earning or redeeming more points, so as long as you continue to use the card, you can continue banking rewards.

The real key to capitalizing on your cashback rewards is to try and put whatever purchases you can on the card, so long as you can still pay the balance at the end of each billing cycle. That way, you stand the best chance of meeting your cashback threshold—otherwise, you might be simply leaving money on the table.

How Can eConsumer Services® Help with Cashback Rewards?

eConsumer Services® is a merchant-consumer mediation service provider. We help cardholders resolve transaction disputes that result from online purchases.

If you’ve used your cashback card for a purchase and need a refund or would like to terminate a service agreement, we can help. Contact eConsumer Services® any time you’re dissatisfied with a credit card transaction and we can help secure a refund.

Contact eConsumer Services® today to learn more or visit our claims form to open a new case.