Best Cash Back Credit Cards Trends For 2023 – Forbes

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Cash-back cards needn’t be boring. They might not have the glamor of travel rewards or the prestige of descriptors like “platinum” or “diamond,” but they hold a coveted spot in many wallets. Rewards are easy to earn and easy to use. Plus, with these 2023 cash-back credit card trends, there’s even more to be excited about with this type of rewards card.

Featured Partner Offers For Cash Back Credit Cards

Earn 2% With No Annual Fee

For years, flat-rate cards earned at 1% everywhere before eventually inching up to 1.5% cash back on all purchases. Now, 2% cash-back credit cards are relatively easy to find.

One of the best cash-back cards is the Wells Fargo Active Cash® Card: you’ll earn unlimited 2% cash rewards on purchases with no annual fee. It’s set apart from other 2% cards since it also earns a welcome bonus of $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months. A welcome bonus of any size is rather unusual for a 2% cash-back card.

The Citi® Double Cash Card is another long-time favorite effectively offering uncapped 2% cash back with no annual fee (specifically, you’ll earn 2% cash back on all purchases—1% when purchases are made and another 1% when they’re paid off). Or, try the PayPal Cashback Mastercard®* which is even more rewarding on some types of purchases. It earns 3% cash back on PayPal purchases and 2% on all other purchases.

Bonus Rewards on More Types of Purchases

If you’re not married to the idea of flat-rate earnings, you can earn even higher cash-back rates on certain types of purchases. Some no-annual-fee cards offer 5% cash back on select categories while cards with a modest annual fee may offer even higher.

Potentially very rewarding, cards with rotating 5% categories offer the chance to earn strong rewards on purchase types that vary by quarter. The Chase Freedom Flex℠ is an appealing version of this type of card. It earns 5% cash back on up to $1,500 in categories that rotate quarterly (requires activation), 5% on travel purchased through Chase Ultimate Rewards®, 3% on dining and drugstores and 1% on all other purchases. Similarly, the Discover it® Cash Back earns 5% cash back on everyday purchases at different places each quarter up to a quarterly maximum of $1,500 in spending when activated. Plus, earn unlimited 1% cash back on all other purchases – automatically.

If keeping track of changing categories is too much hassle for you, consider instead the Citi Custom Cash℠ Card which earns 5% cash back on purchases in a top eligible spend category each billing cycle, up to the first $500 in spending each month and 1% cash back on all other purchases. To earn at elevated rates in multiple categories, choose the Blue Cash Preferred® Card from American Express (Terms apply. See rates & fees). It has a $0 intro annual fee for the first year, then $95 annual fee, but offers strong rewards in categories that appeal to most households. You’ll earn 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) and 1% cash back on other eligible purchases. Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.

Enjoy Statement Credits and Extra Perks

Premium credit cards have bundles benefits and credits for their cardholders, but now everyday cash-back cards are doing the same. We’re starting to see extras being packed into your card benefits and we hope to see even more of this in 2023.

For example, the Chase Freedom Unlimited® is, at the time of writing, offering complimentary three-month memberships to both DoorDash DashPass and Instacart+. To sweeten the Instacart deal, they also throw in a $10 statement credit once per quarter through July 31, 2024 when you use your enrolled card to make a qualifying purchase through Instacart. The card also offers 5% cash back on Lyft rides for even more earnings.

That’s far from the only card offering credits or discounts. All American Express cards are eligible for Amex Offers. These targeted offers typically provide statement credits when you enroll and spend a minimum amount of money with a partnering merchant. These can add to huge savings. Recently, we’ve seen offers such as $100 in credits after a $500 purchase with Airbnb or $9 in credit when spending $9 on Paramount+ subscription charges with your card.

Find the Best Cash Back Credit Cards Of 2022

Bottom Line

With these cash-back credit card trends, 2023 is shaping up to be the time to hold a rewards card. You’ll enjoy the simplicity of rewards you can understand along with strong earning rates, extra rewards and built-in benefits that add even more value for being a cardholder.

To view rates and fees for Blue Cash Preferred® Card from American Express please visit this page.

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