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bank of america cash back rewards categories

But the Bank of America Cash Back Rewards credit card actually lets cardholders choose their higher earning categories from among several on. The 5% reward rate on popular spending categories and the unique sign-up offer make the Discover it® Cash Bank of America® Cash Rewards Credit Card Logo. Bank of America® Cash Rewards Credit Card, Possible 3% Cash Back (up able to elect 3% cash back on gas purchases as your category (you.

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Bank of america cash back rewards categories -

A Guide to the Best Cash Back Credit Cards in 2021

7 Best Credit Cards for Cash Back

Discover it® Cash Back Credit Card Logo

Discover it® Cash Back Credit Card

4.5 starsOur Rating

Apply Now Read Full Review

Discover it® Cash Back Credit Card

4.5 starsOur Rating

REWARDS RATE: 1%-5% cash back

WELCOME BONUS: Unlimited Cashback Match

APR: 11.99%-22.99% (variable)

ANNUAL FEE: $0

KEY FACTS

PRODUCT DETAILS

PROS & CONS

The 5% reward rate on popular spending categories and the unique sign-up offer make the Discover it® Cash Back credit card one of the market's favorites. Given that this card has no annual fees and that it comes with a few additional security perks, it's clear how this has made it to the very top of our list.

  • Activate the offer and receive 5% cash back on everyday purchases at different places each quarter such as grocery stores, gas stations, restaurants, Amazon.com, and when you make a payment using PayPal, up to the quarterly maximum; automatically earn 1% on all other spending categories. 
  • With the Cashback Match offer, automatically get an unlimited dollar-for-dollar match of all the rewards you've earned at the end of your first year as a cardholder.
  • 0% introductory APR for 14 months on both purchases and balance transfers.

Pros

  • High rewards on certain spending categories
  • 0% intro APR for 14 months
  • No annual fees

Cons

  • Complicated rewards policy
  • Low acceptance rate outside the US
Chase Freedom Unlimited® Credit Card Logo

Chase Freedom Unlimited® Credit Card

4.5 starsOur Rating

Apply Now Read Full Review

Chase Freedom Unlimited® Credit Card

4.5 starsOur Rating

REWARDS RATE: 1.5%-5% cash back

WELCOME BONUS: $200 cash bonus

APR: 14.99%–23.74% (variable)

ANNUAL FEE: $0

KEY FACTS

PRODUCT DETAILS

PROS & CONS

Chase Freedom Unlimited® is a simple credit card that offers flat-rate rewards and an easily attainable sign-up bonus. There are no redemption minimums and the card is free of annual fees. It’s a great choice for anyone who needs to finance a large purchase.

  • Get a $200 welcome bonus after spending a minimum of $500 on purchases in the first three months from account opening.
  • Earn 5% cash back on travel purchases made through Chase Ultimate Rewards; get 3% cash back on dining at restaurants, including takeout and select delivery services, as well as on drugstore purchases; receive 1.5% cash back on all other purchases.
  • 0% introductory purchase APR for 15 months from account opening.

Pros

  • Flat-rate rewards 
  • 0% intro APR for 15 months
  • Easy-to-get welcome bonus

Cons

  • Complicated rewards system
  • Charges a foreign transaction fee
Bank of America® Cash Rewards Credit Card Logo

Bank of America® Cash Rewards Credit Card

4.5 starsOur Rating

Apply Now Read Full Review

Bank of America® Cash Rewards Credit Card

4.5 starsOur Rating

REWARDS RATE: 1%-3% cash back

WELCOME BONUS: $200 cash bonus

APR: 13.99%-23.99% (variable)

ANNUAL FEE: $0

KEY FACTS

PRODUCT DETAILS

PROS & CONS

If you’re in the market for a large welcome bonus, a long introductory APR period, and the option to choose your own categories for the highest rewards rate, the Bank of America Cash Rewards® card may be just what you need. Also, thanks to the Preferred Rewards program, the bonuses that come with this card are almost unmatched

  • Claim a $200 cash bonus after making at least $1,000 in purchases in the first 90 days of account opening.
  • Earn 3% cash back in the spending category of your choice: travel, gas, online shopping, dining, drugstores, and home improvement; earn 2% cash back at grocery stores and wholesale clubs; 1% cash back on all other purchases. The 3% and 2% cash rewards are capped at $2,500 each quarter, after reaching the limit you’ll earn unlimited 1% cash back. 
  • 0% introductory purchase APR for the first 12 billing cycles.

Pros

  • Customizable rewards plan
  • Large sign-up bonus
  • 0% intro APR for 15 months

Cons

  • Modest rewards rates
  • Low spending caps
American Express Blue Cash Preferred® Card Logo

American Express Blue Cash Preferred® Card

4.5 starsOur Rating

Apply Now Read Full Review

American Express Blue Cash Preferred® Card

4.5 starsOur Rating

REWARDS RATE: 1%-6% cash back

WELCOME BONUS: $300 cash bonus

APR: 13.99%-23.99% (variable)

ANNUAL FEE: $0 for the first year, then $95

KEY FACTS

PRODUCT DETAILS

PROS & CONS

The Amex Express Blue Cash Preferred® card is an excellent choice for consumers who spend a lot on groceries and transit. Although the card comes with an annual membership fee, the generous welcome bonus and high rewards offset it nicely. 

  • Receive $300 cash back in the form of a statement if you manage to spend $3,000 in purchases on your new card within the first six months as a cardmember.
  • Earn 6% cash back on groceries (up to $6,000 per year in US supermarket purchases) and on select streaming subscriptions; get 3% cash back on transit (taxis, rideshare, parking, tolls, trains, buses) and on gas at US gas stations; receive 1% cash back on all other purchases.
  • 0% intro purchase APR on purchases for 12 months from the date of account opening.

Pros

  • High rewards rate on groceries
  • Generous sign-up bonus
  • 0% intro APR for 12 months

Cons

  • Charges an annual fee
  • Has a foreign transaction fee
5. Capital One QuicksilverOne Cash Rewards Credit Card Logo

5. Capital One QuicksilverOne Cash Rewards Credit Card

4 starsOur Rating

Apply Now Read Full Review

5. Capital One QuicksilverOne Cash Rewards Credit Card

4 starsOur Rating

REWARDS RATE: 1.5% cash back

WELCOME BONUS: N/A

APR: 26.99% (variable)

ANNUAL FEE: $39

KEY FACTS

PRODUCT DETAILS

PROS & CONS

Capital One’s QuicksilverOne is a great cash back card for consumers who are still building their FICO scores. The card offers competitive flat-rate rewards and several additional benefits, including the opportunity to bump your credit limit up. It comes with an annual fee, but there are no balance transfer fees.

  • Cardholders earn unlimited 1.5% cash back on every purchase, no restrictions. 
  • Unlimited access to your credit score and credit monitoring tools with CreditWise from Capital One.
  • Cardholders are automatically considered for a higher credit line in as little as six months.

Pros

  • Flat-rate rewards
  • Various cardholder benefits
  • Relaxed credit score requirement

Cons

  • No welcome offer
  • Modest rewards rate
Citi® Double Cash Card Logo

Citi® Double Cash Card

5 starsOur Rating

Apply Now Read Full Review

Citi® Double Cash Card

5 starsOur Rating

REWARDS RATE: 2% cash back

WELCOME BONUS: N/A

APR: 13.99%-23.99% (variable)

ANNUAL FEE: $0

KEY FACTS

PRODUCT DETAILS

PROS & CONS

The Citi® Double Cash card earns generous rewards on absolutely everything. If you’re in the market for a high cash back rewards rate on all purchases and can’t be bothered to keep track of different purchasing categories or pay annual fees, this is a great choice. 

  • This card comes with a unique rewards structure. Cardmembers get a total of 2% cash back on every purchase - unlimited 1% cash back when they buy, plus an additional 1% as they pay for those purchases.
  • 0% introductory APR on balance transfers for 18 months
  • The card comes with 24-hour fraud protection and the City® identity theft solutions

Pros

  • High flat-rate rewards
  • No annual fee
  • Long intro APR period on balance transfers

Cons

  • No sign-up bonus offer
  • No 0% APR for purchases
Источник: https://fortunly.com/credit-cards/best-cash-back-credit-cards/
Personal Discover". www.discover.com. Retrieved 17 January 2019.
  • ^"What is Extended Product Warranty?

    Card Details

    Earn cash back your way – choose your 3% category

    3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings Learn more cash back categories

    2% cash back at grocery stores and wholesale clubs

    1% cash back on all other purchases

    You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1% Calculate rewards Cash Rewards

    To change your choice category for future purchases, you must go to Online Banking, or use the Mobile Banking App. You can change it once each calendar month, or make no change and it stays the same

    $200 online cash rewards bonus offer

    Online $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days of your account opening

    Low Introductory APR Offer

    Introductory 0% APR for your first 15 billing cycles for purchases, and for any balance transfers made within 60 days of opening your account. After the intro APR offer ends, a Variable APR that's currently 13.99% to 23.99% will apply. 3% fee (min $10) applies to balance transfers.

    No annual fee

    Enjoy no annual fee while maximizing your cash back by choosing how you earn rewards

    Get even more rewards

    Preferred Rewards members earn 25%-75% more cash back on every purchase.

    That means the 3% choice category could go up to 5.25% and the 2% at grocery stores and wholesale clubs could go up to 3.5%, for the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, and the 1% for all other purchases could go up to 1.75%.

    Learn more about Preferred Rewards Cash Rewards

    This online only offer may not be available if you leave this page, if you visit a Bank of America financial center or call the bank. You can take advantage of this offer when you apply now.

    Interest Rates & Fees Summary

    Interest Rates & Fees Summary

    Interest Rates & Fees Summary

    Please see Terms and Conditions for rate, fee and other cost information, as well as an explanation of payment allocation. All terms may be subject to change.

    Introductory APR

    0% for 15 billing cycles

    Applies to purchases and to any balance transfers made within 60 days of opening your account

    Standard APR

    Balance Transfer Fee

    3%

    of each transaction (minimum $10)

    Introductory APR

    0% for 15 billing cycles

    Applies to purchases and to any balance transfers made within 60 days of opening your account

    Standard APR

    Balance Transfer Fee

    3%

    of each transaction (minimum $10)

    Note: minimum payments are applied to lower-interest balances first. Additional payments are applied to higher-interest balances first.

    View complete list of rates and fees

    Security & Features

    Security & Features

    Stay Protected

    We block potential fraud if abnormal patterns are detected and let you know if we suspect fraudulent activity. Plus, you always get a $0 Liability Guarantee for fraudulent transactions. Learn more at the Security Center

    Contactless Chip Technology

    Simply tap to pay where you see the Contactless Symbol. You can make purchases quickly, easily and securely at millions of locations. Learn more Contactless Chip Technology

    Overdraft Protection

    An optional service to help prevent declined purchases, returned checks or other overdrafts when you link your eligible Bank of America® checking account to your credit card. Transfer fees may apply.

    Paperless Statement Option

    Opt for paperless credit card statements and increase account security while reducing paper consumption.

    Digital Wallet Technology

    Discover more ways to pay by adding your Bank of America® credit card to your mobile device then shop in-store or in-app using Apple Pay®, Google Pay™ or Samsung Pay. Learn more Digital Wallet

    Online & Mobile Banking

    Access to our award-winning Online and Mobile Banking. Bank on the go from almost anywhere quickly and securely. Pay your credit card bill online, transfer funds, check available credit and more.

    Account Alerts

    Stay on top of your balances and due dates. Choose from several types of customer email or text alerts and let your phone tell you when payments are due and paid.

    FICO® Score

    Now, when you opt-in you can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking.Learn More FICO Score

    Источник: https://www.bankofamerica.com/credit-cards/products/cash-back-credit-card/

    Best Bank of America Credit Cards of November 2021– Top 10 Reviews

    Bank of America® Premium Rewards® Credit Card

    Frequent travelers looking for flexibility in credit card rewards ought to take a look at the Bank of America® Premium Rewards® credit card

    • Offers a lot of luxury perks
    • Offers premium travel protections
    • No foreign transaction fees

    Best rewards limited to certain customers

    As the name implies, this is a premium type of BoA card, and therefore, expect premium fees with good packaging. It charges $95 annual fees. However, this annual fee packs a lot of goodies including:

    2 points per dollar on travel and dining purchases and 1.5 points per dollar on all other spendings. You can still boost the rewards by 25% – 75% if you are a bank of America preferred rewards member (terms apply). 

    That said, you have a lot of options when it comes to redeeming your points. These include requesting a deposit into the more eligible bank of America or Merrill account. Or you can redeem your rewards for gift cards and other purchases at the Bank of America Travel Center or credit card statement credits (terms apply).

    Bank of America® Customized Cash Rewards Credit

    Looking for a credit card that lucrative cash rewards offer on where you spend most, the Bank of America® Customized Cash Rewards credit card is a good option to consider.

    • Lower purchase limit to earn a welcome bonus.
    • Good rewards earning potential
    • Option to change 3% bonus category monthly
    • High balance transfer fee
    • 3% foreign transaction fee

    This credit card stand stands out among other cashback cards in many ways. To begin with, you get to earn a 200 online cash reward bonus for at least $1,000 in purchases in the first 90 days of account opening.

     In addition, the $0 annual fee offers you the freedom to choose your own 3% bonus category from a list of options and change that selection once a month. The six options that you can choose from include:

    • Gas.
    • Online shopping.
    • Dining.
    • Travel.
    • Drugstores.
    • Home improvement and furnishings.

    Other bonuses include 2% back on grocery store purchases and wholesale clubs for the first $2,500 of combined bonus category/ grocery store/ wholesale club spending per quarter. After hitting that limit, you’ll earn 1% back on these purchases.  

    Bank of America® Travel Rewards Credit Card

    Looking for a BoA credit card that will reward you unlimited points on travels, this card will achieve that at no foreign transaction fees and a $0 annual fee.

    • Earn unlimited points on all purchases
    • $0 annual fee.
    • No foreign transaction fees
    • No bonus categories to boost reward earnings
    • APR can be high, depending on creditworthiness

    Eligible new cardholders can earn a welcome bonus of 25,000 online bonus points for at least $1,000 in purchases in the first 90 days of account opening.

    Every cardholder earns an unlimited 1.5 points for every dollar that they spend, regardless of spending category. This has the potential to increase by 25% -75% if you are a preferred reward card owner. 

    Rewards never expire as long as the account is open, but some of the redemption options have a time limit attached. Points can be redeemed for credit against any travel dining purchases. For instance, you can redeem statement credits when paying for flights, hotels, vacation packages, rental cars, or baggage fees.

    Lastly, it is among the few travel cards that will offer you the interest rate of 0% intro APR for 15 billing cycles on purchases, and then the ongoing APR of 13.99% – 23.99% Variable APR. 

    Bank of America Business Advantage Travel Rewards

    For small-business owners looking for a simple and versatile reward card, this could be what you are looking for.

    • Doesn’t charge an annual fee
    • Doesn’t have a reward cap 
    • No foreign transaction fees
    • Requires excellent credit
    • Target to redeem the welcome bonus is a lot.

    If you make at least $3,000 in a net purchase within 90 days of your account opening, you stand a chance of earning a welcome 30,000 bonus point. The bonus point can be redeemed for a $300 statement credit towards travel or dining purchases. 

    On-going rewards include earning unlimited 1.5 points every time for every $1 spent on all purchases anywhere no matter how much you spent. The points don’t expire. 

    In addition, you can earn points for every dollar spent on travel purchases booked through the BoA travel center. Despite all the perks, it has a $0 annual fee. The rewards could be best in class if you keep a certain amount of money in eligible Bank of America® and Merrill business accounts.

    Alaska Airlines Visa Signature® Credit Card

    West Coast frequent fliers can earn the best annual companion pass.

    • Redeem miles for flights with over a dozen airline global partners
    • Free checked bag on Alaska Airline
    • Annual Companion fare can save you hundreds of dollars
    • The companion ticket is limited to Alaska Airlines flights
    • No lounge benefits or priority boarding

    Alaska Airlines Visa Signature® credit card will introduce you to a great welcome bonus. A new account can receive 50,000 bonus miles after you make $2,000 or more in purchases within the first 90 days of your account opening.

    However, it’s most famous for its annual companion pass. This benefit can be used to purchase a ticket for your companion once per year for as little as $121 with no blackout dates. Cardholders receive the companion fare every year when they renew the card.

    You will also enjoy 20% back on all Alaska Airlines inflight purchases and 50% off day passes at the Alaska Lounge when you pay with your new card.

    In addition, you will earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases and an unlimited 1 mile for every $1 spent on all other purchases. Your miles don’t expire on active accounts.

    Though this credit card charges $75 annual fees, the companion pass, free checked bag, and other travel benefits can more than makeup for it.

    BankAmericard® Credit Card for Students

    Those with limited or no credit history may qualify, so this card offers an excellent opportunity to build credit.

    • Fee-free balance transfer intro offer
    • Longer-than-average 0% Intro APR offer
    • Applicants with limited or no credit history may qualify
    • No rewards program
    • It charges a 3% foreign transaction fee

    This is a great option for someone who is just starting, such as students. The card is designed to assist you to develop a good credit habit and stay in control of your finances. 

    Despite having a $0 annual fee, the credit card boasts a regular 12.99% – 22.99% Variable APR on purchases and balance transfers made within 60 days of opening your account and all purchases made during the introductory period.

    The credit score is fair (650 – 699), but it charges 3% on foreign transactions. There are several other benefits including free access to FICO score, overdraft protection, free and easy ShopSafe service among others. 

    Bank of America® Customized Cash Rewards Secured

    Looking for the best credit card for bad credit on our list, Bank of America® Customized Cash Rewards Secured is here for you.

    • Competitive rewards rates for a secured card
    • It may be upgraded to an unsecured card with responsible use
    • No annual fee
    • Minimum security deposit required but doesn’t earn interest
    • Balance transfer fee

    This bank is designed with your financial security in mind. As you open this account, you will be required to make a refundable security deposit of at least $300. The maximum-security deposit amount can go up to $4,900 and the amount of security deposit you make will determine your maximum credit limit. 

    Once that is done, you are in for huge rewards. You will earn 3% cashback in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs, and 1% cashback on all other purchases. You’ll also earn 3% and 2% cashback on the first $2,500 in combined categories each quarter, then 1%. 

    All these come at a $0 annual fee. The only things we never liked is their poor credit score (0-649), security deposit, and balance transfer fees.

    Air France KLM World Elite Mastercard®

    Looking for an airline credit card with the best international travel rewards per dollar spent, Air France KLM World Elite Mastercard® is a great choice.

    • It offers bumper anniversary rewards
    • Earning 1.5 miles for all purchases sounds great
    • You can redeem points for travel on Air France, KLM, and other Skyteam partners.
    • High annual fee charges
    • High charges on the flying blue program.

    Earn an unlimited 1.5 miles per dollar in all purchases everywhere.

    But that is not all, you also earn  3x miles per dollar spent directly on Air France, KLM Royal Dutch Airlines, and SkyTeam member airlines (eg: Delta Airlines, Korean Air, Aeromexico). 

    Their welcome bonus is also great as you stand to earn 50,000 Bonus Miles after you make $2,000 or more in purchases within the first 90 days of your account opening. 

    Each cardholder will also celebrate their card anniversaries with a lot of rewards upon renewal. These include achieving elite status by getting elite points upon approval. These enable you to gain status and move up a level as a Flying Blue member.

    You can also earn an additional 40 XP each year by spending at least $15,000 within your anniversary year. Additionally, you’ll earn 5,000-anniversary miles whenever you spend at least $50 within your anniversary year.

    Even though they charge $89 annual fees, anniversary miles and XP points will make you pay that fee without feeling the pinch. 

    Amtrak Guest Rewards® World Mastercard®

    This is our best option on the list for those who love to travel by train.

    • Offer annual companion coupons to new cardholders
    • You get 5% of your redeemed points back when you use them to book an Amtrak ticket.
    • You get 3x points on Amtrak purchases
    • High annual fees
    • Not convenient for everyone

    For new cardholders, you are guaranteed two yearly coupons as welcome bonuses. These include an annual companion worth up to $300 and a coupon to upgrade your ticket that is worth up to $150.

    The ongoing rewards include 3x points per dollar spent on Amtrak travel. When you use the redeemed points from your reward to book an Amtrak ticket, you get 5% of your redeemed points back.

    It also has a limited online offer where you get 50,000 bonus points after qualifying purchases worth up to $1,250 in Amtrak® travel. There’s no limit as to how many points you can earn and they don’t expire as long as your account is open.

    Amtrak travelers will also enjoy earning a 20% rebate on food and beverage purchases on board, up to 4,000 Tier-Qualifying Points towards elite status, and a complimentary single-visit station lounge pass upon account opening. All these perks come at $79 annual fees. 

    Bank of America® Travel Rewards Credit Card for Students

    If you are looking for a student credit card that offers interest-free promotional financing on new purchases, this is the best.

    • Students can travel outside the US and pay no foreign transaction fees
    • Doesn’t charge annual fees
    • Offer competitive welcome bonus
    • Not packed with rewards as some of our top picks. 
    • Students may be lured by the rewards and end up overspending.

    This card is designed with a college student who loves to travel in mind. To begin with, the Bank of America helps you get your next vacation quicker once your account is opened by giving you 25,000 points for at least $1,000 in purchases within the first 90 days. Those points can be redeemed for $250 towards your travel purchases.

    Their best ongoing reward is an unlimited 1.5 points for every dollar spent. You can redeem the points statement credit to offset flights, hotels, vacation packages, rental cars, or baggage charges. 

    All these perks come at a $0 annual and foreign fees. 

    Источник: https://www.compelo.com/best-bank-of-america-credit-cards/
    bank of america cash back rewards categories

    Best Bank of America Credit Cards of November 2021– Top 10 Reviews

    Bank of America® Premium Rewards® Credit Card

    Frequent travelers looking for flexibility in credit card rewards ought to take a look at the Bank of America® Premium Rewards® credit card

    As the name implies, this is a premium type of BoA card, and therefore, expect premium fees with good packaging. It charges $95 annual fees. However, this annual fee packs a lot of goodies including:

    2 points per dollar on travel and dining purchases and 1.5 points per dollar on all other spendings. You can still boost the rewards by 25% – 75% if you are a bank of America preferred rewards member (terms apply). 

    That said, you have a lot of options when it comes to redeeming your points. These include requesting a deposit into the more eligible bank of America or Merrill account. Or you can redeem your rewards for gift cards and other purchases at the Bank of America Travel Center or credit card statement credits (terms apply).

    Bank of America® Customized Cash Rewards Credit

    Looking for a credit card that lucrative cash rewards offer on where you spend most, the Bank of America® Customized Cash Rewards credit card is a good option to consider.

    • Lower purchase limit to earn a welcome bonus.
    • Good rewards earning potential
    • Option to change 3% bonus category monthly
    • High balance transfer fee
    • 3% foreign transaction fee

    This credit card stand stands out among other cashback cards in many ways. Coldwell banker careers begin with, you get to earn a 200 online cash reward bonus for at least $1,000 in purchases in the first 90 days of account opening.

     In addition, the $0 annual fee offers you the freedom to choose your own 3% bonus category from a list of options and change that selection once a month. The six options that you can choose from include:

    • Gas.
    • Online shopping.
    • Dining.
    • Travel.
    • Drugstores.
    • Home improvement and furnishings.

    Other bonuses include 2% back on grocery store purchases and wholesale clubs for the first $2,500 of combined bonus category/ grocery store/ wholesale club spending per quarter. After hitting that limit, you’ll earn 1% back on these purchases.  

    Bank of America® Travel Rewards Credit Card

    Looking for a BoA credit card that will reward you unlimited points on travels, this card will achieve that at no foreign transaction fees and a $0 annual fee.

    • Earn unlimited points on all purchases
    • $0 annual fee.
    • No foreign transaction fees
    • No bonus categories to boost reward earnings
    • APR can be high, depending on creditworthiness

    Eligible new cardholders can earn a welcome bonus of 25,000 online bonus points for at least $1,000 in purchases in the first 90 days of account opening.

    Every cardholder earns an unlimited 1.5 points for every dollar that they spend, regardless of spending category. This has the potential to increase by 25% -75% if you are a preferred reward card owner. 

    Rewards never expire as long as the account is open, but some of the redemption options have a time limit attached. Points can be redeemed for credit against any travel dining purchases. For instance, you can redeem statement credits when paying for flights, hotels, vacation packages, rental cars, or baggage fees.

    Lastly, it is among the few travel cards that will offer you the interest rate of 0% intro APR for 15 billing cycles on purchases, and then the ongoing APR of 13.99% – 23.99% Variable APR. 

    Bank of America Business Advantage Travel Rewards

    For small-business owners looking for a simple and versatile reward card, this could be what you are looking for.

    • Doesn’t charge an annual fee
    • Doesn’t have a reward cap 
    • No foreign transaction fees
    • Requires excellent credit
    • Target to redeem the welcome bonus is a lot.

    If you make at least $3,000 in a net purchase within 90 days of your account opening, you stand a chance of earning a welcome 30,000 bonus point. The bonus point can be redeemed for a $300 statement credit towards travel or dining purchases. 

    On-going rewards include earning unlimited 1.5 points every time for every $1 spent on all purchases anywhere no matter how much you spent. The points don’t expire. 

    In addition, you can earn points for every dollar spent on travel purchases booked through the BoA travel center. Despite all the perks, it has a $0 annual fee. The rewards could be best in class if you keep a certain amount of money in eligible Bank of America® and Merrill business accounts.

    Alaska Airlines Visa Signature® Credit Card

    West Coast frequent fliers can earn the best annual companion pass.

    • Redeem miles for flights with over a dozen airline global partners
    • Free checked bag on Alaska Airline
    • Annual Companion fare can save you hundreds of dollars
    • The companion ticket is limited to Alaska Airlines flights
    • No lounge benefits or priority boarding

    Alaska Airlines Visa Signature® credit card will introduce you to a great welcome bonus. A new account can receive 50,000 bonus miles after you make $2,000 or more in purchases within the first 90 days of your account opening.

    However, it’s most famous for its annual companion pass. This benefit can be used to purchase a ticket for your companion once per year for as little as $121 with no blackout dates. Cardholders receive the companion fare every year when they renew the card.

    You will also enjoy 20% back on all Alaska Airlines inflight purchases and 50% off day passes at the Alaska Lounge when you pay with your new card.

    In addition, you will earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases and an unlimited 1 mile for every $1 spent on all other purchases. Your miles don’t expire on active accounts.

    Though this credit card charges $75 annual fees, the companion pass, free checked bag, and other travel benefits can more than makeup for it.

    BankAmericard® Credit Card for Students

    Those with limited or no credit history may qualify, so this card offers an excellent opportunity to build credit.

    • Fee-free balance transfer intro offer
    • Longer-than-average 0% Intro APR offer
    • Applicants with limited or no credit history may qualify
    • No rewards program
    • It charges a 3% foreign transaction fee

    This is a great option for someone who is just starting, such as students. The card is designed to assist you to develop a good credit habit and stay in control of your finances. 

    Despite having a $0 annual fee, the credit card boasts a regular 12.99% – 22.99% Variable APR on purchases and balance transfers made within 60 days of opening your account and all purchases made during the introductory period.

    The credit score is fair (650 – 699), but it charges 3% on foreign transactions. There are several other benefits including free access to FICO score, overdraft protection, free and easy ShopSafe service among others. 

    Bank of America® Customized Cash Rewards Secured

    Looking for the best credit card for bad credit on our list, Bank of America® Customized Cash Rewards Secured is here for you.

    • Competitive rewards rates for a secured card
    • It may be upgraded to an unsecured card with responsible use
    • No annual fee
    • Minimum security deposit required but doesn’t earn interest
    • Balance transfer fee

    This bank is designed with your financial security in mind. As you open this account, you will be required to make a refundable security deposit of at least $300. The maximum-security deposit amount can go up to $4,900 and the amount of security deposit you make will determine your maximum credit limit. 

    Once that is done, you are in for huge rewards. You will earn 3% cashback in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs, and 1% cashback on all other purchases. You’ll also earn 3% and 2% cashback on the first $2,500 in combined categories each quarter, then 1%. 

    All these come at a $0 annual fee. The only things we never liked is their poor credit score (0-649), security deposit, and balance transfer fees.

    Air France KLM World Elite Mastercard®

    Looking for an airline credit card with the best international travel rewards per dollar spent, Air France KLM World Elite Mastercard® is a great choice.

    • It offers bumper anniversary rewards
    • Earning 1.5 miles for all purchases sounds great
    • You can redeem points for travel on Air France, KLM, and other Skyteam partners.
    • High annual fee charges
    • High charges on the flying blue program.

    Earn an unlimited 1.5 miles per dollar in all purchases everywhere.

    But that is not all, you also earn  3x miles per dollar spent directly on Air France, KLM Royal Dutch Airlines, and SkyTeam member airlines (eg: Delta Airlines, Korean Air, Aeromexico). 

    Their welcome bonus is also great as you stand to earn 50,000 Bonus Miles after you make $2,000 or more in purchases within the first 90 days of your account opening. 

    Each cardholder will also celebrate their card anniversaries with a lot of rewards upon renewal. These include achieving elite status by getting elite points upon approval. These enable you to gain status and move up a level as a Flying Blue member.

    You can also earn an additional 40 XP each year by spending at least $15,000 within your anniversary year. Additionally, you’ll earn 5,000-anniversary miles whenever you spend at least $50 within your anniversary year.

    Even though they charge $89 annual fees, anniversary miles and XP points will make you pay that fee without feeling the pinch. 

    Amtrak Guest Rewards® World Mastercard®

    This is our best option on the list for those who love to travel by train.

    • Offer annual companion coupons to new cardholders
    • You get 5% of your redeemed points back when you use them to book an Amtrak ticket.
    • You get 3x points on Amtrak purchases
    • High annual fees
    • Not convenient for everyone

    For new cardholders, you are guaranteed two yearly coupons as welcome bonuses. These include an annual companion worth up to $300 and a coupon to upgrade your ticket that is worth up to $150.

    The ongoing rewards include 3x points per dollar spent on Amtrak travel. When you use the redeemed points from your reward to book an Amtrak ticket, you get 5% of your redeemed points back.

    It also has a limited online offer where you get 50,000 bonus points after qualifying purchases worth up to $1,250 in Amtrak® travel. There’s no limit as to how many points you can earn and they don’t expire as long as your account is open.

    Amtrak travelers will also enjoy earning a 20% rebate on food and beverage purchases on board, up to 4,000 Tier-Qualifying Points towards elite status, and a complimentary single-visit station lounge pass upon account opening. All these perks come at $79 annual fees. 

    Bank of America® Travel Rewards Credit Card for Students

    If you are looking for a student credit card that offers interest-free promotional financing on new purchases, this is the best.

    • Students can travel outside the US and pay no foreign transaction fees
    • Doesn’t charge annual fees
    • Offer competitive welcome bonus
    • Not packed with rewards as some of our top picks. 
    • Students may be lured by the rewards and end up overspending.

    This card is designed with a college student who loves to travel in mind. To begin with, the Bank of America helps you get your next vacation quicker once your account is opened by giving you 25,000 points for at least $1,000 in purchases within the first 90 days. Those points can be redeemed for $250 towards your travel purchases.

    Their best ongoing reward is an unlimited 1.5 points for every dollar spent. You can redeem the points statement credit to offset flights, hotels, vacation packages, rental cars, or baggage charges. 

    All these perks come at a $0 annual and foreign fees. 

    Источник: https://www.compelo.com/best-bank-of-america-credit-cards/

    Bank of America is one of the largest banking entities in the United States, so it makes sense that BOA is working to become a serious player in the competitive cash back credit card market. Its latest offering is a card with a unique twist.

    The Bank of America Cash Rewards Credit Card the skeleton key in hindi download you choose your own path for earning cash back rewards. If you sign up for this card, you get to pick one spending category that will earn you 3% cash back for the next month. That is supplemented by some 2% cash back categories that Bank of America chooses for you, and the rest of your purchases earn 1% cash back.

    And there is even a chance for some existing BOA banking customers to boost their cash back rewards by up to 75%.

    But can this card actually earn you more cash back rewards than a card that offers a standard unlimited 2% cash back? That’s one of the questions I’ll try to answer for you in this card review.

    I’ve taken a close look at this Bank of America offering to see if it holds up against popular cash back cards like the Citi Double Cash, which is a card you’ll find in money expert Clark Howard’s wallet.


    Table of Contents

    Team Clark has spent time evaluating the credit card market in several categories including the best cash back credit cards. We’ve compared the Bank of America Cash Rewards to the best cards in this segment of the market. And we’ve determined that it’s a viable choice — thanks to its bonus cash back categories and lack of an annual fee.

    As you’re deciding whether this card is a fit for you, please bank of america cash back rewards categories this review in conjunction with Clark Howard’s 7 Rules for Using Credit Cards.


    What Is the Bank of America Cash Rewards Credit Card?

    The Bank of America Cash Rewards Credit Card is a cash back credit card that does not charge an annual fee.

    The hook for this card is that Bank of America allows you to choose one spending category in which you’ll receive 3% cash back, and you can change that category as often as once a month. This comes in addition to 2% cash back earnings in other categories. The rest of your purchases will earn a 1% cash back reward.

    This card also offers a welcome bonus offer on initial spending as well as a 12-month introductory period for 0% APR on new purchases.


    Bank of America Cash Rewards: Specs and Perks

    Let’s take a look at the fine print to examine some of the card’s perks and drawbacks:

    Cash Back Categories

    The cash back rewards for this card range from 1% on everyday purchases up to 3% in one category of your choice.

    Bank of America offers you the chance to pick between six popular spending categories for your 3% reward. You can change this category each month via the Bank of America app, so if you’re proactive with your budgeting, you could get the most out of the card by changing to the category in which you anticipate spending the most in the next month.

    You’ll also get a standard 2% cash back reward on some select categories. But Bank of America gets to choose those.

    Here’s how the rewards program is structured as of this writing:

    3% cash back rewards category choices:

    • Gas
    • Online shopping
    • Dining
    • Travel
    • Drug stores
    • Home improvement and furnishings

    2% cash back rewards categories:

    • Grocery stores
    • Wholesale clubs

    Bank of America caps rewards on the 2% and 3% categories to $2,500 in total spending during a three-month period. After that, you’ll earn 1% cash back until the next quarter. And again, all other purchases earn 1% cash back.

    “Preferred Rewards” Members Can Enjoy Increased Cash Back Benefits

    If you are a member of the Bank of America Preferred Rewards program, you could see an increase in your bonus opportunities with this card.

    This is a program that offers certain customers extra rewards or better rates on a variety of different financial products. And this card is included.

    Here are the minimum requirements for joining the program:

    • An active, eligible Bank of America checking account
    • A three-month combined average daily balance of $20,000 or more in qualifying Bank of America deposit accounts and/or Merrill investment accounts.

    If your account qualifies as Gold ($20,000 minimum balance) in the rewards program, you’ll receive a 25% increase in cash back. Platinum ($50,000 minimum balance) status gets you a 50% increase. And Platinum Honors, which requires a $100,000 minimum balance, offers a 75% increase in cash back rewards.

    Bank of America offers this example of how it works: “A $100 purchase that earns 3% ($3.00) will actually earn $3.75, $4.50 or $5.25 based on your tier when the purchase posts to your account.”

    I’ll compare how these rates can stack up against other credit card rewards programs later in bank of america cash back rewards categories article.

    More Cardholder Benefits

    • Welcome Bonus Offer: Bank of America has assigned a fairly easy-to-achieve welcome bonus to this card. You can earn $200 in cash back rewards if you spend $1,000 or more within the first 90 days of card membership.
    • Introductory APR Period: This card comes with 0% APR on all new purchases for the first 12 billing cycles. After that period, any leftover balance will be subject to interest charges at your assigned APR.

    Cardholder Fees

    Here’s a quick look at some of the fees you may encounter with the Bank of America Cash Rewards Card:

    • Annual Fee: None
    • Balance Transfer Fee: $10 or 3% of the total advance, whichever is greater
    • Cash Advance Fee: $10 or 3% of the total advance, whichever is greater
    • Foreign Transaction Fee: 3% of the U.S. dollar amount of each transaction
    • Late Payment Fee: Up to $40

    Bank of America Cash Rewards vs. Citi Double Cash

    If you’re considering a cash back credit card, you’re likely looking for a card that’s going to optimize your rewards based on your spending habits.

    To help determine if the Bank of America Cash Rewards Credit Card is actually your best option, I compared this card to the Citi Double Cash.

    Spending Comparison

    The Citi Double Cash, which gives unlimited 2% cash back on all purchases (1% when you buy, 1% when you pay your bill), is one of money expert Clark Howard’s favorite credit cards. It has no annual fee and no bonus categories, so the math is pretty straightforward on your spending.

    The Bank of America Cash Rewards, on the other hand, is not so easy to nail down for the purposes of a spending comparison. First, you need to estimate your spending on the 3% category. Next, you have to determine if you’re eligible for the Preferred Rewards bonuses based on the amount of money you may have in qualifying accounts at the time of your spending.

    For the purposes of this comparison, I’ll set the following parameters:

    1. Since Bank of America caps cash back rewards bonuses each quarter, the analysis will be based on quarterly spending.
    2. We’ll assume that spending is done to max out that quarterly bonus in your chosen 3% category plus Bank of America’s assigned 2% categories.
    3. For simplicity’s sake, we’ll assume that you spend $1,500 ($500 per month) in your chosen 3% category, and then a combined $1,000 in the 2% categories. This will max out your $2,500 in spending eligible for bonuses on the Bank of America card.

    Scenario #1: $3000 in Quarterly Spending

    If you spend $1,500 in your chosen 3% category, $1,000 in Bank of America’s 2% categories and $500 on everything else, here are the results:

    Citi Double Cash: $60 cash back (2%)
    Bank of America Cash Rewards: $70 cash back (effective 2.3%)

    Bank of America Cash Rewards are slightly more valuable than Citi Double Cash in this scenario.

    Scenario #2: $6000 in Quarterly Spending

    If you spend $1,500 in your chosen 3% category, $1,000 in Bank of America’s 2% categories and $3,500 on everything else, here are the results:

    Citi Double Cash: $120 cash back (2%)
    Bank of America Cash Rewards: $100 cash back (effective 1.67%)

    Citi Double Cash is more valuable than Bank of America Cash Rewards in this scenario.

    You can do your own calculations for a spending scenario using Bank of America’s cash back estimating tool.


    Final Thoughts

    Are you considering adding the Bank of America Cash Rewards to your wallet? Let’s review some of the major pros and cons of the card before you make your final decision:

    Bank of America Cash Rewards: Pros and Cons

    ProsCons
    Earn 3% cash back in a category of your choiceOnly 1% cash back in many spending categories
    $200 welcome bonus opportunityCash back reward bonuses capped at $2,500 in spending per quarter
    0% APR on new purchases for 12 monthsMust have minimum of $20,000 balance in qualifying accounts to access increased rewards offer

    Bottom Line: If you are an existing Bank of America customer who has access to the bank’s Preferred Rewards program, you may want to inquire about the potential for boosts to the cash back offerings on this credit card.

    Otherwise, the offered 3% cash back reward category choice is probably not going to provide enough benefit to make this card better than an unlimited 2% cash back offering. While the ability to change your 3% spending category each month is helpful, it still will take a great deal of budgeting and maybe even some guesswork to ensure you get the most out of it.

    Money expert Clark Howard hates banking with big banks, so he would advise against opening a Bank of America account just to get the cash back boost provided by the Preferred Rewards program.

    And he also really enjoys the certainty of the rewards structure on his Citi Double Cash. So if you’re looking to follow his lead, this card is probably a “pass” for most consumers.

    Do you have experience with the Bank of America Cash Rewards Credit Card? Let us know how you like it in the comments below!

    More Clark.com Stories You May Like:

    How Many Credit Cards Should I Have?How Many Credit Cards Should I Have?-Are you worried that the number of credit cards you have could have a negative impact on your financial life? Is there a “right” number of credit cards for one person to have? The answer is a little more nuanced…
    Источник: https://clark.com/credit-cards/bank-of-america-cash-rewards-review/

    Axis Bank Credit Card

    At your request, you are being redirected to a third party site. Please read and agree with the disclaimer before proceeding further.

    This is to inform you that by clicking on the hyper-link/ok, you will be accessing a website operated by a third party namely Such links are provided only for the convenience of the Client and Axis Bank does not control or endorse such websites, and is not responsible for their contents. The use of such websites would be subject to the terms and conditions of usage as stipulated in such websites and would take precedence over the terms and conditions of usage of www.axisbank.com in case of conflict between them. Any actions taken or obligations created voluntarily by the person(s) accessing such web sites shall be directly between such person and the owner of such websites and Axis Bank shall not be responsible directly or indirectly for such action so taken. Thank you for visiting www.axisbank.com

    Cover arranged by Axis Bank for its customers under Digit Illness Group Insurance Policy (UIN GODHLGP20142V011920). Participation to group insurance is voluntary.

    Источник: https://www.axisbank.com/retail/cards/credit-card

    bank of america preferred rewards changes reddit Once you sign up, you’ll automatically move through the tiers as your balance grows. Earn 1 RBC Rewards point for every $1 spent on gas, grocery and drug store purchases 4. The 3% and 2% earnings are capped at $2,500 in combined purchases each quarter, and all other purchases earn 1% cash back. Apr 29, 2020 · Bank of America Preferred Rewards. For example, if you don’t drive much, a card that offers gas rewards as its main perk won’t be of much use to you. Oct 13, 2021 · The Blue Cash Preferred rewards you for your weekly errand, with a generous spending cap for the top rewards rate—a whopping 6%. It may take up to 30 calendar days for changes to your Preferred Rewards status or tier to be associated with and effective for your accounts in the advisory programs. Advantage Plus Banking®: $12 waived for the following: Have at least one qualifying direct deposit of $250 OR; Maintain a minimum daily balance of $1,500 or more; Bank of America Advantage Relationship Banking®: $25 waived for the following: Dec 11, 2019 · Bank of America Corp (NYSE: BAC ) expanded its free trading offering Monday with the elimination of commissions on stock, ETF and options trades. Please let us know if you have any questions about these changes or would like to discuss other account options that might be right for you, like our Bank of America Preferred Rewards program. Here are the pros and cons to consider before applying. Mar 02, 2021 · The Bank of America Business Advantage Customized Cash Rewards Mastercard (what a name…) is the no-annual-fee “cash back” credit card in the Bank of America small business card line-up. 99% Variable APR will apply. Bank When You Want. 1. You must have at least $20,000, $50,000 or $100,000 in qualifying combined balances with Bank of America deposit or Merrill Lynch investment accounts to qualify for the Preferred Rewards program. Oct 18, 2021 · Preferred Rewards clients get this fee waived (waiver applies to the first 4 checking account) Bank of America Advantage Plus Banking. The Bank of America Preferred Rewards program, which earns 25%-75% more cash back on every purchase made with eligible cards, doesn’t necessarily function the same way as some other rewards programs, in that having multiple cards benefits you because you’re earning points towards the same rewards program, but instead, it offers the opportunity to have multiple cards that To receive Affiliate Rewards Preferred Pricing, you must provide proof that you are currently employed at an Affiliate Rewards partner company. Contactless Cards - The security of a chip card, with the convenience of a tap. Apply Now. 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If you are enrolled in Bank of America’s Preferred Rewards program, however, you’ll get cashier’s checks for free. 625% All Purchases Jul 07, 2020 · The key to maximizing Preferred Rewards is qualifying for the Platinum Honors tier. Receive 50,000 online bonus points - a $500 value - after you make at least $3,000 in purchases in the first 90 days of account opening. 95. Advantage Plus Banking®: $12 waived for the following: Have at least one qualifying direct deposit of $250 OR; Maintain a minimum daily balance of $1,500 or more; Bank of America Advantage Relationship Banking®: $25 waived for the following: “As of November 12, 2021, or such later date as we may provide you notice of, the Preferred Rewards for Wealth Management program will be discontinued. I saw on my Bank of America statement that my rewards balance of $348 Feb 02, 2021 · If you’re seeking extensive travel insurance with a Bank of America credit card, consider Bank of America® Premium Rewards® Credit Card. The six categories are: gas, online shopping, dining, travel, drug stores, or home improvement and furnishings. 6. Oct 04, 2021 · Rewards: With the Bank of America Premium Rewards credit card, you’ll earn two points per dollar spent on travel and dining, and 1. Nov 17, 2020 · Bank of America sent out a survey with different options for how the Platinum Honors, Platinum, and Gold bonuses might work for relationship customers, according to Reddit user kdm31091. Oct 19, 2021 · Rewards credit card. 99%. NEW YORK-- ( BUSINESS WIRE )--Bank of America today launched Preferred Rewards, a ground Aug 15, 2018 · The Chase Sapphire Preferred’s annual fee of $95 but it is waived for the first year and the APR of 17. Bank of America, N. Jun 16, 2019 · Lastly, if you become a Bank of America Preferred Rewards client you will enjoy a free savings account. Jun 08, 2021 · Upon enrollment, Bank of America puts you in the appropriate Preferred Rewards tier based on your balances. New Card Member Offer. 15 percent on the 0. transaction or $5 for each foreign country Oct 21, 2021 · finance. Bank of America® Premium Rewards® Credit Card ( Review) $95. yahoo. You then receive the Preferred Rewards benefits for clients in that tier. You could use the 1. Compare Cards. 85 percent annual fee for Merrill Guided Investing with an Advisorfor a rate as low as 0. Bank of America is a massive lender with uncommonly low mortgage rates. 03% APY. GNC Rewards. Bank of America has an application rule called 2/3/4. Program subject to change. BofA has published a comprehensive document indicating the MCC for each bonus category. For accounts opened for fewer than 3 months, the deposit limit is $2,500 per month. Transfers require enrollment in the service and must be made from an eligible Bank of America consumer or business deposit account to a domestic bank account or consumer debit card. Aug 20, 2021 · The Preferred Rewards program is a tiered approach to rewarding Bank of America customers. Supermarkets. If you qualify for "preferred rewards" status with BofA, the cashback rates can be boosted by up to 75%. The two new “preferred rewards” tiers will be called: “Diamond” for individuals with assets of at least $1 million and “Diamond Honors” for accounts with $10 million or more in their bank or brokerage accounts. GNC. Bank of America offers cashier’s checks to all customers with a checking or savings account for a $15 fee. If you're a Bank of America Preferred Rewards member, you can earn 25%-75% more points on every purchase. So, for those people who prefer the convenience of having a lot of locations and ATMs — even when they If you're enrolled in this security feature, we sent a notification to your registered device. PAPER STATEMENT. Dec 13, 2018 · The Bank of America Customized Cash Rewards Credit Card is the “3-2-1” cash back rewards credit card in the Bank of America line-up. 03%, with incremental increases for "Preferred Rewards clients. 70 percent. This cash back number goes as high as 5. Oct 12, 2021 · The Preferred Rewards program is expanding! Preferred Rewards is the program that recognizes and thanks you for your relationship with Bank of Arerica. The Advantage Plus Banking account is the easiest account to keep fee-free.Member FDIC and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp. Earn Interest Income. ”). dealer for an eligible vehicle. Register for Real-Time Rewards to redeem cash rewards instantly for nearly any purchase. If that doesn’t strike your fancy, take a look at travel insurance cards from other issuers. ‡. Once you sign up, you'll automatically move through the tiers as your balance grows. They are being transferred over from another Wealth Management program to be part of an upgraded tier in the Preferred Rewards program. Here are the Oct 05, 2010 · Original review: Oct. MIN BALANCE TO AVOID MONTHLY FEE $5000. If you put all 20k in your checking/savings account and hold that balance than you’re gold level as you said. 5% cash back on all purchases could increase to up to 2. Apr 09, 2014 · Bank of America Business Advantage Fundamentals Banking Fees. Annual Fee: $0 intro annual fee for the first year, then $ 95. com - October 11 at 3:16 PM. Chase Sapphire Preferred. level 2. 25x rate on travel purchases. Plus, you can avoid the account's $8 monthly maintenance fee as a Preferred Rewards member. “As of November 12, 2021, or such later date as we may provide you notice of, the Preferred Rewards for Wealth Management program will be discontinued. RBC Rewards + Visa. 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    0%

    Intro purchase APR

    for the first 15 billing cycles (then 13.99% to 23.99% variable)

    Details

    Annual fee$0
    Welcome offer$200 after spending $1,000 in the first 90 days
    Rewards3% cash back on a chosen category and 2% at grocery stores and wholesale clubs for the first $2,500 each quarter combined, then 1% after that and on everything else
    Purchase APR0% intro for the first 15 billing cycles (then 13.99% to 23.99% variable)
    Balance transfer APR0% intro for the first 15 statement closing dates (then 13.99% to 23.99% variable)
    Minimum Credit Score670
    IssuerMastercard
    Cash advance rate16.99% to 26.99% variable
    Cash advance fee$10 or 5% of the cash advance amount, whichever is greater
    Penalty APR29.99% variable
    Foreign transaction fee3% of the transaction value
    Interest free periodUp to 25 days
    Late payment feeUp to $40
    Returned payment feeUp to $29
    Additional cardholder fee$0
    Security depositN/A
    Minimum Interest$1.50
    Avatar

    Review by

    Kevin Joey Chen

    [email protected]

    Kevin Joey Chen is a credit cards, banking and investments writer whose work and analysis have appeared on CNN, U.S. News & World Report, Business.com, Lifehacker and CreditCards.com. He's passionate about helping you get your finances in order by expertly navigating cutting-edge financial tools — including credit cards, apps and budgeting software.

    Expert review

    The Bank of America® Customized Cash Rewards has a reputation as a solid, reliable cashback rewards card.

    A $0 annual fee is a great start: It means you won’t feel pressured to use your card. The cash back you earn is a bonus, rather than an obligation to get your money’s worth. You can earn it at your own pace.

    Luckily, the cashback earnings are pretty good too. You’ll earn 3% cash back on a category of your choice and 2% at grocery stores and wholesale clubs for the first $2,500 in combined purchases each quarter — and then 1% after. All other purchases earn you a consistent 1% cash back. This makes for a good mix of earnings for everyday spending.

    1. Go to the Bank of America website and click Apply now.
    2. Complete the application with details like your name, address, annual income and Social Security number.
    3. Review and submit your application.

    BankAmericard Cash Rewards credit card screenshot 2

    How long will it take to be approved?

    Because conditional approval is automated on the Bank of America website, you’ll often get a decision within minutes. In some cases, you’ll need to wait a few business days to a few weeks to receive a response while Bank of America processes additional verification information.

    A ‘1 2 3’ cash back credit card

    You may have seen this term before; it’s shorthand for a card that offers 3%, 2% and 1% cash back. The Bank of America® Customized Cash Rewards is an example of such a product — and it’s one of the top available.

    • Annual fee: $0. A $0 annual fee means your cash back is all a plus. You won’t feel pressured to use the card to make it worth paying for.
    • Signup bonus: Online cash. After you spend $1,000 on purchases in the first 90 days your account is open, you receive a $200 online cash bonus.
    • Cash back: More for gas and groceries. Earn 3% cash back on your chosen category (between gas, online shopping, dining, travel, drug stores, or home improvement) and 2% at grocery stores and wholesale clubs on your first $2,500 in combined purchases each quarter, reverting to 1% cash back after. You’ll also earn 1% cash back on everything else you buy.
    • Intro APR: Purchases and balance transfers. Get a 0% intro APR on purchases and balance transfers for the first 15 billing cycles, reverting to 13.99% to 23.99% variable APR after. Make balance transfers within the first 60 days to qualify.

    How much cashback rewards can I earn with the Bank of America® Customized Cash Rewards?

    The Bank of America® Customized Cash Rewards is effective if you spend around $800 a month in combined gas, grocery and wholesale-club purchases. Doing so helps you maximize your elevated rewards.

    Here’s how much you might earn based on a similar monthly budget:

    • $250 per month on gas x 3% = $90 cash back a year
    • $500 per month on groceries and wholesale-club purchases x 2% = $120 cash back a year
    • $400 per month in other purchases x 1% = $48 cash back a year

    In total, you’d earn $258 cash back over a year.

    • A cashback bonus for Bank of America customers. When you redeem your cash back into a Bank of America checking or savings account, you’ll get a 10% bonus on your earnings. Existing qualified clients of Bank of America Preferred Rewards could see a bonus of 25% and 75%.
    • Expiration on intro APRs. You’ll accrue no interest on your initial purchases and balance transfers for 15 billing cycles. After, they’re subject to an APR of 13.99% to 23.99% variable.
    • No interest grace period on cash advances. Any cash withdrawals accrue interest immediately. Balance transfers initiated outside the first 60 days your account is open also accrue interest right away.
    • Bank of America Cash Rewards foreign transaction fee. Though the card offers strong cash back, you might want to avoid using it when you travel abroad. That’s because 3% of the transaction will be charged as a fee each time you use your card in a foreign country or for a foreign-currency transaction.

    Data updated regularly

    Compare Bank of America® Customized Cash Rewards with other cards

    Should I get the Blue Cash Preferred® Card from American Express or the Bank of America® Customized Cash Rewards?

    The Bank of America® Customized Cash Rewards is similar to the Blue Cash Preferred® Card from American Express, although it offers less cash back on gas and groceries.

    On the plus side, it doesn’t have an annual fee, so it can effectively net you more cash back than its counterpart. Pick the Bank of America® Customized Cash Rewards if you spend modestly on gas and groceries.

    • You spend a lot in different categories.
      The Citi® Double Cash Card may offer more consistent cash back. And it’s a customer favorite, because it’s incredibly flexible. You’ll earn 1% cash back on everything you buy and another 1% back when you pay off your purchases. It’s a smart pick if you spend widely across multiple categories.
    • You want travel service credit union branches near me excellent travel cards like the Chase Sapphire Preferred® Card and Bank of America® Travel Rewards Credit Card.

    To apply for the Bank of America® Customized Cash Rewards, you must be at least 18 years old (or at least 21 years old, if you live bank of america cash back rewards categories Puerto Rico).

    Information you’ll need

    • Your name, residential status and address
    • Your Social Security number and date of birth
    • Your email address and phone number
    • Financial information like your annual income, source of income and employment information

    What credit score do I need?

    You’ll have a better chance of approval for the Bank of America® Customized Cash Rewards if you apply with a good to excellent credit score of 670 to 850.

    Cardholders are generally pleased that the Bank of America® Customized Cash Rewards comes with no annual fee. Overall, they also like the card’s points structure. That said, some customers say they don’t get as much out of the card as they’d like, because they don’t spend much on gas or groceries.

    Bank of America earned a Trustpilot score of 1.3 out of 5 at the time of this writing. Most negative reviews cite unhelpful customer support. Positive reviews often point to the bank’s easy-to-use website.

    Bank of America also earns an A+ rating from the Better Business Bureau as of November 2021 and has been accredited since 1949.

    • Make timely payments. You can pay your card bill online and enroll in autopay at the Bank of America website.
    • Avoid interest payments. After the close of each billing cycle, you have a grace period of at least 25 days to pay your balance without being charged interest.
    • Avoid fees. Late and returned payments come with hefty fees of up to $40. Balance transfers, cash advances and foreign transactions also come with fees.
    • Customer service. Call Bank of America customer support at 1-800-432-1000 with any additional questions you might have. You can also email Bank of America using an online secure form or connect through social media on Twitter or Facebook @BankofAmerica.

    How do I redeem rewards from Bank of America® Customized Cash Rewards?

    Log in to your Bank of America online account. You can redeem when your cash rewards balance is $25 or more.

    Redeem for these rewards:

    • Statement credit, which reduces the amount you need to pay on your credit card bill.
    • A check.
    • An electronic deposit into a Bank of America savings or checking account.
    • A contribution to an eligible Cash Management Account with Merrill Edge or Merrill Lynch Wealth Management.

    Ally CashBack Credit Card review

    The Bank of America® Customized Cash Rewards is an excellent cashback card, and it gets even better with a $0 annual fee. It may be an especially good choice if you spend regularly on gas and groceries.

    Before deciding, consider comparing other Bank of America cards or looking into other rewards cards.

    • You’ll receive the bonus eight to 12 weeks after you qualify.

    • First, you’ll need a Bank of America personal checking account. Then you’ll need a combined balance of $20,000 or more in these accounts:
      • Bank of America accounts
      • Merrill Edge or Merrill Lynch investment accounts

      Bank of America Preferred Rewards includes tiers that enter based on your combined balance:

      • Gold. Required balance of $20,000 to $50,000 — 25% points bonus
      • Platinum. $50,000 to $100,000 — 50% points bonus
      • Platinum Honors. $100,000+ — 75% points bonus
    • No. Your cash back doesn’t expire as long as your account is open and in good standing.

    Credit card ratings

    ★★★★★ — Excellent

    ★★★★★ — Good

    ★★★★★ — Average

    ★★★★★ — Subpar

    ★★★★★ — Poor

    Our team evaluates credit cards to determine their value against similar cards on the market.

    We rank card types — travel, cash back, business — on a set of factors that are most relevant to that type of card. We create these rankings to help you narrow down a credit card that best suits your spending and budget.

    Learn the details of our methodology and scoring.

    Источник: https://www.finder.com/bankamericard-cash-rewards-credit-card

    Credit card

    card for financial transactions from a line of credit

    An example of the front in a typical credit card:

    A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the other agreed charges).[1] The card issuer (usually a bank or credit union) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards. Most cards are plastic, but some are metal cards (stainless steel, gold, palladium, titanium),[2][3] and a few gemstone-encrusted metal cards.[2]

    A regular credit card is different from a charge card, which requires the balance to be repaid in full each month or at the end of each statement cycle.[4] In contrast, credit cards allow the consumers to build a continuing balance of debt, subject to interest being charged. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

    A credit card also differs from a debit card, which can be used like currency by the owner of the card.

    In 2018, there were 1.12 billion credit cards in circulation in the U.S., and 72% of adults had at least one card.[5]

    Technical specifications[edit]

    The size of most credit cards is 85.60 by 53.98 millimetres (3+3⁄8 in × 2+1⁄8 in) and rounded corners with a radius of 2.88–3.48 millimetres (9⁄80–11⁄80 in)[6] conforming to the ISO/IEC 7810 ID-1 standard, the same size as ATM cards and other payment cards, such as debit cards.[7]

    Credit cards have a printed[8] or embossed bank card number complying with the ISO/IEC 7812 numbering standard. The card number's prefix, called the Bank Identification Number (known in the industry as a BIN[9]), is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check digit.[10]

    Both of these standards are maintained and further developed by ISO/IEC JTC 1/SC 17/WG 1. Credit cards have a magnetic stripe conforming to the ISO/IEC 7813. Most modern credit cards use smart card technology: they have a computer chip embedded in them as a security feature. In addition, complex smart cards, including peripherals such as a keypad, a display or a fingerprint sensor are increasingly used for credit cards.

    In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Complex smart cards allow to have a variable security code, thus increasing security for online transactions. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.

    Credit card numbers were originally embossed to allow easy transfer of the number to charge slips. With the decline of paper slips, some credit cards are no longer embossed and in fact the card number is no longer in the front.[11] In addition, some cards are now vertical in design, rather than horizontal.

    History[edit]

    Edward Bellamy's Looking Backward[edit]

    The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel, although this referred to a card for spending a citizen's dividend from the government, rather than borrowing,[12] making it more similar to a debit card.

    Charge coins, medals, and so on[edit]

    Charge coins and other similar items were used from the late 19th century to the 1930s. They came in various shapes and sizes; with materials made out of celluloid (an early type of plastic), copper, aluminum, steel, and other types of whitish metals.[13] Each charge coin usually had a little hole, enabling it to be put in a key ring, like a key. These charge coins were usually given to customers who had charge accounts in department stores, hotels, and so on. A charge coin usually had the charge account number along with the merchant's name and logo.

    The charge coin offered a simple and fast way to copy a charge account number to the sales slip, by imprinting the coin onto the sales slip. This sped up the process of copying, previously done by handwriting. It also reduced the number of errors, by having a standardized form of numbers on the sales slip, instead of various kinds of handwriting style.[14]

    Because the customer's name was not on the charge coin, almost anyone could use it. This sometimes led to a case of mistaken identity, either accidentally or intentionally, by acting on behalf of the charge account owner or out of malice to defraud both the charge account owner and the merchant. Beginning in the 1930s, merchants started to move from charge coins to the newer Charga-Plate.[15]

    Early charge cards[edit]

    Charga-Plate[edit]

    The Charga-Plate, developed in 1928, was an early predecessor of the credit card and was used in the U.S. from the 1930s to the late 1950s. It was a 2+1⁄2-by-1+1⁄4-inch (64 mm × 32 mm) rectangle of sheet metal related to Addressograph and military dog tag systems. It was embossed with the customer's name, city, and state. It held a small paper card on its back for a signature. In recording a purchase, the plate was laid into a recess in the imprinter, with a paper "charge slip" positioned on top of it. The record of the transaction included an impression of the embossed information, made by the imprinter pressing an inked ribbon against the charge slip.[16] Charga-Plate was a trademark of Farrington Manufacturing Co.[17] Charga-Plates were issued by large-scale merchants to their regular customers, much like department store credit cards of today. In some cases, the plates were kept in the issuing store rather than held by customers. When an authorized user made a purchase, a clerk retrieved the plate from the store's files and then processed the purchase. Charga-Plates sped up back-office bookkeeping and reduced copying errors that were done manually in paper ledgers in each store.

    Air Travel Card[edit]

    In 1934, American Airlines and the Air Transport Association simplified the process even more with the advent of the Air Travel Card.[18] They created a numbering scheme that identified the issuer of the card as well as the customer account. This is the reason the modern UATP cards still start with the number 1. With an Air Travel Card, passengers could "buy now, and pay later" for a ticket against their credit and receive a fifteen percent discount at any of the accepting airlines. By the 1940s, all of the major U.S. airlines offered Air Travel Cards that could be used on 17 different wells fargo online bill pay customer service. By 1941, about half of the airlines' revenues came through the Air Travel Card agreement. The airlines had also started offering installment plans to lure new travelers into the air. In 1948, the Air Travel Card became the first internationally valid charge card within all members of the International Air Transport Association.[19]

    Early general purpose charge cards: Diners Club, Carte Blanche, and American Express[edit]

    The concept of customers paying different merchants using the same card was expanded in 1950 by Ralph Schneider and Frank McNamara, founders of Diners Club, to consolidate multiple cards. The Diners Club, which was created partially through a merger with Dine and Sign, produced the first "general purpose" charge card and required the entire bill to be paid with each statement. That was followed by Carte Blanche and in 1958 by American Express which created a worldwide credit card network (although these were initially charge cards that later acquired credit card features).

    BankAmericard and Master Charge[edit]

    Metal signs at a plant nursery in Los Angeles County, California marketing Mastercharge and Bankamericard

    Until 1958, no one had been able to successfully establish a revolving credit financial system in which a card issued by a third-party bank was being generally accepted by a large number of merchants, as opposed to merchant-issued revolving cards accepted by only a few merchants. There had been a dozen attempts by small American banks, but none of them were able to last very long. In 1958, Bank of America launched the BankAmericard in Fresno, California, which would become the first successful recognizably modern credit card. This card succeeded where others failed by breaking the chicken-and-egg cycle in which consumers did not want to use a card that few merchants would accept and merchants did not want to accept a card that few consumers used. Bank of America chose Fresno because 45% of its residents used the bank, and by sending a card to 60,000 Fresno residents at once, the bank was able to convince merchants to accept the card.[20] It was eventually licensed to other banks around the United States and then around the world, and in 1976, all BankAmericard licensees united themselves under the common brand Visa. In 1966, the ancestor of MasterCard was born when a group of banks established Master Charge to compete with BankAmericard; it received a significant boost when Citibank merged its own Everything Card, launched in 1967, into Master Charge in 1969.

    Early credit cards in the U.S., of which BankAmericard was the most prominent example, were mass-produced and mass mailed unsolicited to bank customers who were thought to be good credit risks. They have been mailed off to unemployable people, drunks, narcotics addicts and to compulsive debtors, a process President Johnson's Special Assistant Betty Furness found very like "giving sugar to diabetics".[21] These mass mailings were known as "drops" in banking terminology, and were outlawed in 1970 due to the financial chaos they caused. However, by the time the law came into effect, approximately 100 million credit cards had been dropped into the U.S. population. After 1970, only credit card applications could be sent unsolicited in mass mailings.

    Before the computerization of credit card systems in America, using a credit card to pay at a merchant was significantly more complicated than it is today. Each time a consumer wanted to use a credit card, the merchant would have to call their bank, who in turn had to call the credit card company, which then had to have an employee manually look up the customer's name and credit balance. This system was computerized in 1973 under the leadership of Dee Hock, the first CEO of Visa, allowing transaction time to decrease substantially to less than one minute.[20] However, until always-connected payment terminals became ubiquitous at the beginning of the 21st century, it was common for a merchant to accept a charge, especially below a threshold value or from a known and trusted customer, without verifying it by phone. Books with lists of stolen card numbers were distributed to merchants who were supposed in any case to check cards against the list before accepting them, as well as verifying the signature on the charge slip against that on the card. Merchants who failed to take the time to follow the proper verification procedures were liable for fraudulent charges, but because of the cumbersome nature of the procedures, merchants would often simply skip some or all of them and assume the risk for smaller transactions.

    [edit]

    The fractured nature of the U.S. banking system under the Glass–Steagall Bank of america cash back rewards categories meant that credit cards became an effective way for those who were traveling around the country to move their credit to places where they could not directly use their banking facilities. There are now countless variations on the basic concept of revolving credit for individuals (as central bank of boone county login by banks and honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit cards, store cards and so on.

    In 1966, Barclaycard in the United Kingdom launched the first credit card outside the United States.

    Although credit cards reached very high adoption levels in the US, Canada and the UK during the latter 20th century, many cultures were more cash-oriented or developed alternative forms of cashless payments, such as Carte bleue or the Eurocard (Germany, France, Switzerland, and others). In these places, adoption of credit cards was initially much slower. Due to strict regulations regarding bank overdrafts, some countries, France in particular, were much quicker to develop and adopt chip-based credit cards which are seen as major anti-fraud credit devices. Debit cards and online banking (using either ATMs or PCs[clarification needed]) are used more widely than credit cards in some countries. It took until the 1990s to reach anything like the percentage market penetration levels achieved in the US, Canada, and UK. In some countries, acceptance still remains low as the use of a credit card system depends on the banking system of each country; while in others, a country sometimes had to develop its own credit card network, e.g. UK's Barclaycard and Australia's Bankcard. Japan remains a very cash-oriented society, with credit card adoption being limited mainly to the largest of merchants; although stored value cards (such as telephone cards) are used as alternative currencies, the trend is toward RFID-based systems inside cards, cellphones, and other objects.

    Vintage, old, and unique credit cards as collectibles[edit]

    Receipt from 1997 - card physically swiped and information imprinted on the receipt

    The design of the credit card itself has become a major selling point in recent years.[22] A growing field of numismatics (study of money), or more specifically exonumia (study of money-like objects), credit card collectors seek to collect various embodiments of credit from the now familiar plastic cards to older paper merchant cards, and even metal tokens that were accepted as merchant credit cards. Early credit cards were made of celluloid plastic, then metal and fiber, then paper, and are now mostly polyvinyl chloride (PVC) plastic. However the chip part of credit cards is not made from plastic but from metals.[citation needed]

    Usage[edit]

    A credit card issuing company, such as a bank or credit union, enters into agreements with merchants for them to accept their credit cards. Merchants often advertise in signage or other company material which cards they accept by displaying acceptance marks generally derived from logos. Alternatively, this may be communicated, for example, via a restaurant's menu or orally, or stating, "We don't take credit cards".

    The credit card issuer issues a credit card to a customer at the time or after an account has been approved by the credit provider, which need not be the same entity as the card issuer. The cardholders can then use it to make purchases at merchants accepting that card. When a purchase is made, the cardholder agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a card not present transaction (CNP).

    Electronicverification systems allow merchants to verify in a few seconds that the card is valid and the cardholder has sufficient credit to cover the purchase, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or point-of-sale (POS) system with a communications link to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is called Chip and PIN in the United Kingdom and Ireland, and is implemented as an EMV card.

    For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as the security code printed on the back of the card, date of expiry, and billing address.

    Each month, the cardholder is sent a statement indicating the purchases made with the card, any outstanding fees, the total amount owed and the minimum payment due. In the US, after receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see 15 U.S.C. § 1643, which limits cardholder liability for unauthorized use of a credit card to $50). The Fair Credit Billing Act gives details of the U.S. regulations.

    Many banks now also offer the option of electronic statements, either in lieu of or in addition to physical statements, which can be viewed at any time by the cardholder via the issuer's online banking website. Notification of the availability of a new statement is generally sent to the cardholder's email address. If the card issuer has chosen to allow it, the cardholder may have other options for payment besides a physical check, such as an electronic transfer of funds from a checking account. Depending on the issuer, the cardholder may also be able to make multiple payments during a single statement period, possibly enabling him or her to utilize the credit limit on the card several times.

    Minimum payment[edit]

    The cardholder must pay a defined minimum portion of the amount owed by a due date, or may choose to pay a higher amount. The credit issuer charges interest on the unpaid balance if the billed amount is not paid in full (typically at a much higher rate than most other forms of debt). In addition, if the cardholder fails to make at least the minimum payment how to find your routing number on navy federal app the due date, the issuer may impose a late fee or other penalties. To help mitigate this, some financial institutions can arrange for automatic payments to be deducted from the cardholder's bank account, thus avoiding such penalties altogether, as long as the cardholder has sufficient funds.

    In cases where the minimum payment is less than the finance charges and fees assessed during the billing cycle, the outstanding balance will increase in what is called negative amortization. This practice tends to increase credit risk and mask the lender's portfolio quality, and consequently has been banned in the U.S. since 2003.[23][24]

    Advertising, solicitation, application and approval[edit]

    Credit card advertising regulations in the U.S. include the Schumer box disclosure requirements. A large fraction of junk mail consists of credit card offers created from lists provided by the major credit reporting agencies. In the United States, the three major U.S. credit bureaus (Equifax, TransUnion and Experian) allow consumers to opt out from related credit card solicitation offers via its Opt Out Pre Screen program.

    Interest charges[edit]

    Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.

    For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is (APR/100 x ADB)/365 x number of days revolved. Take the annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance (ADB). Divide the result by 365 and then take this total and multiply by the total number of days the amount revolved before payment was made on the account. Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was made, if not in full, as a residual retail finance charge (RRFC). Thus after an amount has revolved and a payment has been made, the user of the card will still receive interest charges on their statement after paying the next statement in full (in fact the statement may only have a charge for interest that collected up until the date the full balance was paid, i.e. when the balance stopped revolving).

    The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, possibly with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments. Usually this compartmentalization is the result of special incentive offers from the issuing bank, to encourage balance transfers from cards of other issuers. If several interest rates apply to various balance segments, then payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument, or even if the issuing bank decides to raise its revenue.[citation needed]

    Grace period[edit]

    A credit card's grace period is the time the cardholder has to pay the balance before interest is assessed on the outstanding balance. Grace periods may vary, but usually range from 20 to 55 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after certain conditions are met.

    Usually, if a cardholder is late paying the balance, finance charges will be calculated and the grace period does not apply. Finance charges incurred depend on the grace period and balance; with most credit cards there is no grace period if there is any outstanding balance from the previous billing cycle or statement (i.e. interest is applied on both the previous balance and new transactions). However, there are some credit cards that will only apply finance charge on the previous or old balance, excluding new transactions.

    Parties involved[edit]

    • Cardholder: The holder of the card used to make a purchase; the consumer.
    • Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were previously the only card-issuing banks for their respective brands, but as of 2007, this is no longer the case. Cards issued by banks to cardholders in a different country are known as offshore credit cards.
    • Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder.
    • Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant.
    • Independent sales organization: Re-sellers (to merchants) of the services of the acquiring bank.
    • Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with.
    • Card association: An association of card-issuing banks such as Discover, Visa, MasterCard, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.
    • Transaction network: The system that implements the mechanics of the electronic transactions. May be operated by an independent company, and one company may operate multiple networks.
    • Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities, charities, professional organizations, and major retailers.
    • Insurance providers: Insurers underwriting various insurance protections offered as credit card perks, for example, Car Rental Insurance, Purchase Security, Hotel Burglary Insurance, Travel Medical Protection etc.

    The flow of information and money between these parties — always through the card associations — is known as the interchange, and it consists of a few steps.

    Transaction steps[edit]

    • Authorization: The cardholder presents the card as payment to the merchant and the merchant submits the transaction to the acquirer (acquiring bank). The acquirer verifies the credit card number, the transaction type and the amount with the issuer (card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. An authorization will generate an approval code, which the merchant stores with the transaction.
    • Batching: Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are typically submitted once per day at the end of the business day. Batching can be done manually (initiated by a merchant's action) or automatically (on a pre-determined schedule, using a payment processing platform). If a transaction is not submitted in the batch, the authorization will stay valid for a period determined by the issuer, after which the held amount will be returned to the cardholder's available credit (see authorization hold). Some transactions may be submitted in the batch without prior authorizations; these are either transactions falling under the merchant's floor limit or ones where the authorization was unsuccessful but the merchant still attempts to force the transaction through. (Such may be the case when the cardholder is not present but owes the merchant additional money, such as extending a hotel stay or car rental.)
    • Clearing and Settlement: The acquirer sends the batch transactions through the credit card association, which debits the issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the transaction.
    • Funding: Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the amount totaling the funds in the batch minus either the "discount rate", "mid-qualified rate", or "non-qualified rate" which are tiers of fees the merchant pays the acquirer for processing the transactions.
    • Chargebacks: A chargeback is an event in which money in a merchant account is held due to a dispute relating to the transaction. Chargebacks are typically initiated by the cardholder. In the event of a chargeback, the issuer returns does ally auto accept credit card payments transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it.

    Credit card register[edit]

    A credit card register is a transaction register used to ensure the increasing balance owed from using a credit card is enough below the credit limit to deal with authorization holds and payments not yet received by the bank and to easily look up past transactions for reconciliation and budgeting.

    The register is a personal record of banking transactions used for credit card purchases as they affect funds in the bank account or the available credit. In addition to check number and so forth the code column indicates the credit card. The balance column shows available funds after purchases. When the credit card payment is made the balance already reflects the funds were spent. In a credit card's entry, the deposit column shows the available credit and the payment column shows total owed, their sum being equal to the credit limit.

    Each check written, debit card transaction, cash withdrawal, and credit card charge is entered manually into the paper register daily or capital one apply for loan times per week.[25] Credit card register also refers to one transaction record for each credit card. In this case the booklets readily enable the location of a card's current available credit when ten or more cards are in use.[citation needed]

    Features[edit]

    As well as convenient credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted in larger establishments in almost all countries, and are available with a variety of credit limits, repayment arrangements. Some have added perks (such as insurance protection, rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or cashback).

    Consumers' limited liability[edit]

    Some countries, such as the United States, the United Kingdom, and France, limit the amount for which a consumer can be held liable in the event of fraudulent transactions with a lost or stolen credit card.

    Specialized types[edit]

    Business credit cards[edit]

    See also: Stored-value card

    Business credit cards are specialized credit cards issued in the name of a registered business, and typically they can only be used for business purposes. Their use has grown in recent decades. In 1998, for instance, 37% of small businesses reported using a business credit card; by 2009, this number had grown to 64%.[26]

    Business credit cards offer a number of features specific to businesses. They frequently offer special rewards in areas such as shipping, office supplies, travel, and business technology. Most issuers use the applicant's personal credit score when evaluating these applications. In addition, income from a variety of sources may be used to qualify, which means these cards may be available to businesses that are newly established.[27] In addition, some issuers of these card do not report account activity to the owner's personal credit, or only do so if the account is delinquent.[28] In these cases, the activity of the business is separated from the owner's personal credit activity.

    Business credit cards are offered by American Express, Discover, and almost all major issuers of Visa and MasterCard cards. Some local banks and credit unions also offer business credit cards. American Express is the only major issuer of business charge cards in the United States, however.

    Secured credit cards[edit]

    A secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1,000, they will be given credit in the range of $500–1,000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit the skeleton key in hindi download. This deposit is held in a special savings account. Credit card issuers offer this because they have noticed that delinquencies were notably reduced when the customer perceives something to lose if the balance is not repaid.

    The cardholder of a secured credit card is still expected to make regular payments, as with a regular credit card, but should they default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus. This allows the cardholder to start building (or re-building) a positive credit history.

    Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be debited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent republic bank and trust company tax refund verification continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.

    Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.

    Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Fees and service charges for secured credit cards often exceed those charged for ordinary non-secured credit cards. For people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards are almost always more expensive than unsecured credit cards.

    Sometimes a credit card will be secured by the equity in the borrower's home.

    Prepaid cards[edit]

    See also: Stored-value card

    They are sometimes called "prepaid credit card", but they are a debit card (prepaid card or prepaid debit card),[29] since no credit is offered by the card issuer: the cardholder spends money which has been "stored" via a prior deposit by the cardholder or someone else, such as a parent or employer. However, it carries a credit-card brand (such as Discover, Visa, MasterCard, American Express, or JCB) and can be used in similar ways just as though it were a credit card.[29] Unlike debit cards, prepaid credit cards generally do not require a PIN. An exception are prepaid credit cards with an EMV chip. These cards do require a PIN if the payment is processed via Chip and PIN technology. As of 2018, most debit cards in the U.S. were prepaid cards (71.7%).[5]

    After purchasing the card, the cardholder loads the account with any amount of money, up to the predetermined card limit and then uses the card to make purchases the same way as a typical credit card. Prepaid cards can be issued to minors (above 13) since there is no credit line involved. The main advantage over secured credit cards (see above section) is that the cardholder is not required to come up with $500 or more to open an account. With prepaid credit cards purchasers are not charged any interest but are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card.[29]

    Prepaid credit cards are sometimes marketed to teenagers[29] for shopping online without having their parents complete the transaction.[30] Teenagers can only use funds that are available on the card which helps promote financial management to reduce the risk of debt problems later in life.[citation needed]

    Prepaid cards can be used globally. The prepaid card is convenient for payees in developing countries like Brazil, Russia, India, and China, where international wire transfers and bank checks are time-consuming, complicated and costly.[citation needed]

    Because of the many fees that apply to obtaining and using credit-card-branded prepaid cards, the Financial Consumer Agency of Canada describes them as "an expensive way to spend your own money".[31] The agency publishes a booklet entitled Pre-paid Cards which explains the advantages and disadvantages of this type of prepaid card.see #Further reading

    Digital cards[edit]

    A digital card is a digital cloud-hosted virtual representation of any kind of identification card or payment card, such as a credit card.[citation needed]

    Charge cards[edit]

    The charge cards are a type of credit card.

    Benefits and drawbacks[edit]

    Benefits to cardholder[edit]

    The main benefit to the cardholder is convenience. Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a cardholder who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.

    One financial benefit is that no interest is charged when the balance is paid in full within the grace period.

    Different countries offer different levels of protection. In the UK, for example, the bank is jointly liable with the merchant for purchases of defective products over £100.[32]

    Many credit cards offer benefits to cardholders. Some benefits apply to products purchased with the card, like extended product warranties, reimbursement for decreases in price immediately after purchase (price protection), and reimbursement for theft or damage on recently purchased products (purchase protection).[33] Other benefits include various types of travel insurance, such as rental car insurance, travel accident insurance, baggage delay insurance, and trip delay or cancellation insurance.[34]

    Credit cards may also offer a loyalty program, where each purchase is rewarded based on the price of the purchase. Typically, rewards are either in the form of cash back or points. Points are often redeemable for gift cards, products, or travel expenses like airline tickets. Some credit cards allow the transfer of accrued points to hotel and airline loyalty programs.[35] Research has examined whether competition among card networks may potentially make payment rewards too generous, causing higher prices among merchants, thus actually impacting social welfare and its distribution, a situation potentially warranting public policy interventions.[36]

    Comparison of credit card benefits in the U.S.[edit]

    The table below contains a list of benefits offered in the United States for consumer credit cards in some of these networks. These benefits may vary with each credit card issuer.

    MasterCard[37]Visa[38]American Express[39]Discover[40]
    Return extension60 days
    up to $250
    90 days
    up to $250[41]
    90 days
    up to $300
    Not Available[42]
    Extended warranty2× original
    up to 1 year
    Depends1 additional year
    6 years max
    Not Available[43]
    Price protection60 daysVariesNoNot Available[44]
    Loss/damage coverage90 daysDepends90 days
    up to $1,000
    Not Available
    Rental car insurance

    Main article: Damage waiver

    15 days: collision, theft, vandalism15 days: collision, theft30 days: collision, theft, vandalism[45]Not Available

    Detriments to cardholders[edit]

    High interest and bankruptcy[edit]

    Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months, after which a higher rate is charged. As all credit cards charge fees and interest, some customers become so indebted to their credit card provider that they are driven to bankruptcy. Some credit cards often levy a rate of 20 to 30 percent after a payment is missed.[46] In other cases, a fixed charge is levied without change to the interest rate. In some cases universal default may apply: the high default rate is applied to a card in good standing by missing a payment on an unrelated account from the same provider. This can lead to a snowball effect in which the consumer is drowned by unexpectedly high interest rates. Further, most card holder agreements enable the issuer to arbitrarily raise the interest rate for any reason they see fit. First Premier Bank at one point offered a credit card with a 79.9% interest rate;[47] however, they discontinued this card in February 2011 because of persistent defaults.[48]

    Research shows that a substantial fraction of consumers (about 40 percent) choose a sub-optimal credit card agreement, with some incurring hundreds of dollars of avoidable interest costs.[49]

    Weakens self regulation[edit]

    Several studies have shown that consumers are likely to spend more money when they pay by credit card. Researchers suggest that when people pay using credit cards, they do not experience the abstract pain of payment.[50] Furthermore, researchers have found that using credit cards can increase consumption of unhealthy food.[51]

    Detriments to society[edit]

    Inflated pricing for all consumers[edit]

    Merchants that accept credit cards must pay interchange fees and discount fees on all credit-card transactions.[52][53] In some cases merchants are barred by their credit agreements from passing these fees directly to credit card customers, or from setting a minimum transaction amount (no longer prohibited in the United States, United Kingdom or Australia).[54] The result is that merchants are induced to charge all customers (including those who do not use credit cards) higher prices to cover the fees on credit card transactions.[53] The inducement can be strong because the merchant's fee is a percentage of the sale price, which has a disproportionate effect on the profitability of businesses that have predominantly credit card transactions, unless compensated for by raising prices generally. In the United States in 2008 bank of america cash back rewards categories card companies collected a total of $48 billion in interchange fees, or an average of $427 per family, with an average fee rate of about 2% per transaction.[53]

    Credit card rewards result in a total transfer of $1,282 from the average discover online banking bonus payer to the average card payer per year.[55]

    Benefits to merchants[edit]

    An example of street markets accepting credit cards. Most simply display the acceptance marks(stylized logos, shown in the upper-left corner of the sign) of all the cards they accept.

    For merchants, a credit card transaction is often more secure than other forms of payment, such as cheques, because the issuing bank commits to pay the merchant the moment the transaction is authorized, regardless of whether the consumer defaults on the credit card payment (except for legitimate disputes, which are discussed below, and can result in charges back to the merchant). In most cases, cards are even more secure than cash, because they discourage theft by the merchant's employees and reduce the amount of cash on the premises. Finally, credit cards reduce the back office expense of processing checks/cash and transporting them to the bank.

    Prior to credit cards, each merchant had to evaluate each customer's credit history before extending credit. That task is now performed by the banks which assume the credit risk. Credit cards can also aid in securing a sale especially if the customer does not have enough cash on hand or in a checking account. Extra turnover is generated by the fact that the customer can purchase goods and services immediately and is less inhibited by the amount of cash in pocket and the immediate state of the customer's bank balance. Much of merchants' marketing is based on this immediacy.

    For each purchase, the bank charges the merchant a commission (discount fee) for this service and there may be a certain delay before the agreed payment is received by the merchant. The commission is often a percentage of the transaction amount, plus a fixed fee (interchange rate).

    Costs to merchants[edit]

    Merchants are charged several fees for accepting credit cards. The merchant is usually charged a commission of around 1 to 4 percent of the value of each transaction paid for by credit card.[56] The merchant may also pay a variable charge, called a merchant discount rate, for each transaction.[52] In some instances of very low-value transactions, use of credit cards will significantly reduce the profit margin or cause the merchant to lose money on the transaction. Merchants with very low average transaction prices or very high average transaction prices are more averse to accepting credit cards. In some cases merchants may charge users a "credit card supplement" (or surcharge), either a fixed amount or a percentage, for payment by credit card.[57] This practice was prohibited by most credit card contracts in the United States until 2013, when a major settlement between merchants and credit card companies allowed merchants to levy surcharges. Most retailers have not started using credit card surcharges, however, for fear of losing customers.[58]

    Merchants in the United States have been fighting what they consider to be unfairly high fees charged by credit card companies in a series of lawsuits that started in 2005. Merchants charged that the two main credit card processing companies, MasterCard and Visa, used their monopoly power to levy excessive fees in a class-action lawsuit involving the National Retail Federation and major retailers such as Wal-Mart. In December 2013, a federal judge approved a $5.7 billion settlement in the case that offered payouts to merchants who had paid credit card fees, the largest antitrust settlement in U.S. history. Some large retailers, such as Wal-Mart and Amazon, chose to not participate in this settlement, however, and have continued their legal fight against the credit card companies.[58]

    Merchants are also required to lease or purchase processing equipment, in some cases this equipment is provided free of charge by the processor. Merchants must also satisfy data security compliance standards which are highly technical and complicated. In many cases, there is a delay of several days before funds are deposited into a merchant's bank account. Because credit card fee structures are very complicated, smaller merchants are at a disadvantage to analyze and predict fees.

    Finally, merchants assume the risk of chargebacks by consumers.

    Security[edit]

    Main article: Credit card fraud

    See also: Wireless identity theft

    Credit card security relies on the physical security of the plastic card as well as the privacy of the credit card number. Therefore, whenever a person other than the card owner has access to the card or its number, security is potentially compromised. Once, merchants would often accept credit card numbers without additional verification for mail order purchases. It is now common practice to only ship to confirmed addresses as a security measure to minimise fraudulent purchases. Some merchants will accept a credit card number for in-store purchases, whereupon access to the number allows easy fraud, but many require the card itself to be present, and require a signature (for magnetic stripe cards). A lost or stolen card can be cancelled, and if this is done quickly, will greatly limit the fraud that can take place in this way. European banks can require a cardholder's security PIN be entered for in-person purchases with the card.

    The Payment Card Industry Data Security Standard (PCI DSS) is the security standard issued by the Payment Card Industry Security Standards Council (PCI SSC). This data security standard is used by acquiring banks to impose cardholder data security measures upon their merchants.

    The goal of the credit card companies is not to eliminate fraud, but to "reduce it to manageable levels".[59] This implies that fraud prevention measures will be used only if their cost are lower than the potential gains from fraud reduction, whereas high-cost low-return measures will not be used – as would be expected from organizations whose goal is profit maximization.

    Internet fraud may be committed by claiming a chargeback which bank of america cash back rewards categories not justified ("friendly fraud"), or carried out by the use of credit card information which can be stolen in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, security breaches are usually the result of poor practice by merchants. For example, a website that safely uses TLS to encrypt card data from a client may then email the data, unencrypted, from the webserver to the merchant; or the merchant may store unencrypted details in a way that allows them to be accessed over the Internet or by a rogue employee; unencrypted card details are always a security risk. Even encrypted data may be cracked.

    Controlled payment numbers (also known as virtual credit cards or disposable credit cards) are another option for protecting against credit card fraud where presentation of a physical card is not required, as in telephone and online purchasing. These are one-time use numbers that function as a payment card and are linked to the user's real account, but do not reveal details, and ally bank car login be used for subsequent unauthorised transactions. They can be valid for a relatively short time, and limited to the actual amount of the purchase or a limit set by the user. Their use can be limited to one merchant. If the number given to the merchant is compromised, it will be rejected if an attempt is made to use it a second time.

    A similar system of controls can be used on physical cards. Technology provides the option for banks to support many other controls too that can be turned on and off and varied by the credit card owner in real time as circumstances change (i.e., they can change temporal, numerical, geographical and many other parameters on their primary and subsidiary cards). Apart from the obvious benefits of such controls: from a security perspective this means that a customer can have a Chip and PIN card secured for the real world, and limited for use in the home country. In this eventuality a thief stealing the details will be prevented from using these overseas in non chip and pin EMV countries. Similarly the real card can be restricted from use on-line so that stolen details will be declined if this tried. Then when card users shop online they can use virtual account numbers. In both circumstances an alert system can be built in notifying a user that a fraudulent attempt has been made which breaches their parameters, and can provide data on this in real time.

    Additionally, there are security features present on the physical card itself in order to prevent counterfeiting. For example, most modern credit cards have a watermark that will fluoresce under ultraviolet light.[60] Most major credit cards have a hologram. A Visa card has a letter V superimposed over the regular Visa logo and a MasterCard has the letters MC across the front of the card. Older Visa cards have a bald eagle or dove across the front. In the aforementioned cases, the security features are only visible under ultraviolet light and are invisible in normal light.

    The United States Department of Justice, United States Secret Service, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, and U.S. Postal Inspection Service are responsible for prosecuting criminals who engage in credit card fraud in the United States.[61] However, they do not have the resources to pursue all criminals, and in general they only prosecute cases exceeding $5,000.

    Three improvements to card security have been introduced to the more common credit card networks, but none has proven to help reduce credit card fraud so far. First, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smart card (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Second, an additional 3 or 4 digit card security code (CSC) or card verification value (CVV) is now present on the back of most cards, for use in card not present transactions. Stakeholders at all levels in electronic payment have recognized the need to develop consistent global standards for security that account for and integrate both current and emerging security technologies. They have begun to address these needs through organisations such as PCI DSS and the Secure POS Vendor Alliance.[62]

    Code 10[edit]

    Code 10 calls are made when merchants are suspicious about accepting a credit card.

    The operator then asks the merchant a series of YES or NO questions to find out whether the merchant is suspicious of the card or the cardholder. The merchant may be asked to retain the card if it is safe to do so. The merchant may receive a reward for returning a confiscated card to the issuing bank, especially if an arrest is made.[63][64][65][66]

    Costs and revenues of credit card issuers[edit]

    Costs[edit]

    Charge offs[edit]

    When a cardholder becomes severely delinquent on a debt (often at the point of six months without payment), the creditor may declare the debt to be a charge-off. It will then be listed as such on the debtor's credit bureau reports. (Equifax, for instance, lists "R9" in the "status" column to denote a charge-off.)

    A charge-off is considered to be "written off as uncollectible". To banks, bad debts and fraud are part of the cost of doing business.

    However, the debt is still legally valid, and the creditor can attempt to collect the full amount for the time periods permitted under state law, which is usually three to seven years. This includes contacts from internal collections staff, or more likely, an outside collection agency. If the amount is large (generally over $1,500–2,000), there is the possibility of a lawsuit or arbitration.

    Fraud[edit]

    Main article: Credit card fraud

    In relative numbers the values lost in bank card fraud are minor, calculated in 2006 at 7 cents per 100 dollars worth of transactions (7 basis points).[67] In 2004, in the UK, the cost of fraud was over £500 million.[68] When a card is stolen, or an unauthorized duplicate made, most card issuers will refund some bank of america cash back rewards categories all of the charges that the customer has received for things they did not buy. These refunds will, in some cases, be at the expense of the merchant, especially in mail order cases where the merchant cannot claim sight of the card. In several countries, merchants will lose the money if no ID card was asked for, therefore merchants usually require ID card in these countries. Credit card companies generally guarantee the merchant will be paid on legitimate transactions regardless of whether the consumer pays their credit card bill.

    Most banking services have their own credit card services that handle fraud cases and monitor for any possible attempt at fraud. Employees that are specialized in doing fraud monitoring and investigation are often placed in Risk Management, Fraud and Authorization, or Cards and Unsecured Business. Fraud monitoring emphasizes minimizing fraud losses while making an attempt to track down those responsible and contain the situation. Credit card fraud is a major white collar crime that has been around for many decades, even with the advent of the chip based card (EMV) that was put into practice in some countries to prevent cases such as these. Even with the implementation of such measures, credit card fraud continues to be a problem.

    Interest expenses[edit]

    Banks generally borrow the money they then lend to their customers. As they bank of america cash back rewards categories very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates. If the card issuer charges 15% on money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the cardholder for a year, the issuer earns 10% on the loan. This 10% difference is the "net interest spread" and the 5% is the "interest expense".

    Operating costs[edit]

    This is the cost of running the credit card portfolio, including everything from paying the executives who run the company to printing the plastics, to mailing the statements, to running the computers that keep track of every cardholder's balance, to taking the many phone calls which cardholders place to their issuer, to protecting the customers from fraud rings. Depending on the issuer, marketing programs are also a significant portion of expenses.

    Rewards[edit]

    Many credit card customers receive rewards, such as frequent flyer points, gift certificates, or cash back as an incentive to use the card. Rewards are generally tied to purchasing an item or service on the card, which may or may not include balance transfers, cash advances, or other special uses. Depending on the type of card, rewards will generally cost the issuer between 0.25% and 2.0% of the spread. Networks such as Visa or MasterCard have increased their fees to allow issuers to fund their rewards system. Some issuers discourage redemption by forcing the cardholder to call customer service for rewards. On their servicing website, redeeming awards is usually a feature that is very well hidden by the issuers.[69] With a fractured and competitive environment, rewards points cut dramatically into an issuer's bottom line, and rewards points and related incentives must be carefully managed to ensure a profitable portfolio.[citation needed] Unlike unused gift cards, in whose case the breakage in certain US states goes to the state's treasury,[70] unredeemed credit card points are retained by the issuer.[71]

    Revenues[edit]

    Interchange fee[edit]

    Main article: Interchange fee

    In addition to fees paid by the card holder, merchants must also pay interchange fees to the card-issuing bank and the card association.[72][73] For a typical credit card issuer, interchange fee revenues may represent about a quarter of total revenues.[74]

    These fees are typically from 1 to 6 percent of each sale, but will vary not only from merchant to merchant (large merchants can negotiate lower rates[74]), but also from card to card, with business cards and rewards cards generally costing the merchants more to process. The interchange fee that applies to a particular transaction is also affected by many other variables including: the type of merchant, the merchant's total card sales volume, the merchant's average transaction amount, whether the cards were physically present, how the information required for the transaction was received, the specific type of card, when the transaction was settled, and the authorized and settled transaction amounts. In some cases, merchants add a surcharge to the credit cards to cover the interchange fee, encouraging their customers to instead use cash, debit cards, or even cheques.

    Interest on outstanding balances[edit]

    Interest charges vary widely from card issuer to card issuer. Often, there are "teaser" rates or promotional APR in effect for initial periods of time (as low as zero percent for, say, six months), whereas regular rates can be as high as 40 percent.[75] In the U.S. there is no federal limit on the interest or late fees credit card issuers can charge; the interest rates are set by the states, with some states such as South Dakota, having no ceiling on interest rates and fees, inviting some banks to establish their credit card operations there. Other states, for example Delaware, have very weak usury laws. The teaser rate no longer applies if the customer does not pay their bills on time, and is replaced by a penalty interest rate (for example, 23.99%) that applies retroactively.

    Fees charged to customers[edit]

    The major credit card fees are for:

    • Membership fees (annual or monthly), sometimes a percentage of the credit limit.
    • Cash advances and convenience cheques (often 3% of the amount)
    • Charges that result in exceeding the credit limit on the card (whether deliberately or by mistake), called over-limit fees
    • Exchange rate loading fees (sometimes these might not be reported on the customer's statement, even when applied).[76] The variation of exchange rates applied by different credit cards can be very substantial, as much as 10% according to a Lonely Planet report in 2009.[77]
    • Late or overdue payments
    • Returned cheque fees or payment processing fees (e.g. phone payment fee)
    • Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this.
    • Finance charge is any charge that is included in the cost of borrowing money.[78]

    In the U.S., the Credit CARD Act of 2009 specifies that credit card companies must send cardholders a notice 45 days before they can increase or change certain fees. This includes annual fees, cash advance fees, and late fees.[79]

    Controversy[edit]

    One controversial area is the trailing interest issue. Trailing interest refers to interest that accrues on a balance after the monthly statement is produced, but before the balance is repaid. This bank of america cash back rewards categories interest is typically added to the following monthly statement. U.S. Senator Carl Levin raised the issue of millions of Americans affected by hidden fees, compounding interest and cryptic terms. Their woes were heard in a Senate Permanent Subcommittee on Investigations hearing which was chaired by Senator Levin, who said that he intends to keep the spotlight on credit card companies and that legislative action may be necessary to purge the industry.[80] In 2009, the C.A.R.D. Act was signed into law, enacting protections for many of the issues Levin had raised.

    Hidden costs[edit]

    In the United Kingdom, merchants won the right through The Credit Cards (Price Discrimination) Order 1990[81] to charge customers different prices according to the payment method; this was later removed by the EU's 2nd Payment Services Directive. As of 2007, the United Kingdom was one of the world's most credit card-intensive countries, with 2.4 credit cards per consumer, according to the UK Payments Administration Ltd.[82]

    In the United States until 1984, federal law prohibited surcharges on card transactions. Although the federal Truth in Lending Act provisions that prohibited surcharges expired that year, a number of states have since enacted laws that continue to outlaw the practice; California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Maine, New York, Oklahoma, and Texas have laws against surcharges. As of 2006, the United States probably had one of the world's highest if not the top ratio of credit cards per capita, with 984 million bank-issued Visa and MasterCard credit card and debit card accounts alone for an adult population of roughly 220 million people.[83] The credit card per U.S. capita ratio was nearly 4:1 as of 2003[84] and as high as 5:1 as of 2006.[85]

    Over-limit charges[edit]

    United Kingdom[edit]

    Consumers who keep their account in good order by always staying within their credit limit, and always making at least the minimum monthly payment will see interest as the biggest expense from their card provider. Those who are not so careful and regularly surpass their credit limit or are late in making payments were exposed to multiple charges, until a ruling from the Office of Fair Trading[86] that they would presume charges over £12 to be unfair which led the majority of card providers to reduce their fees to £12.

    The higher fees originally charged were claimed to be designed to recoup the card operator's overall business costs and to try to ensure that the credit card business as a whole generated a profit, rather than simply recovering the cost to the provider of the limit breach, which has been estimated as typically between £3–£4. Profiting from a customer's mistakes is arguably not permitted under UK common law, if the charges constitute penalties for breach of contract, or under the Unfair Terms in Consumer Contracts Regulations 1999.

    Subsequent rulings in respect of personal current accounts suggest that the argument that these charges are penalties for breach of contract is weak, and given the Office of Fair Trading's ruling it seems unlikely that any further test case will take place.

    Whilst the law remains in the balance, many consumers have made claims against their bank of america cash back rewards categories card providers for the charges that they have incurred, plus interest that they would have earned had the money not been deducted from their account. It is likely that claims for amounts charged in excess of £12 will succeed, but claims for charges at the OFT's £12 threshold level are more contentious.

    United States[edit]

    The Credit CARD Act of 2009 requires that consumers opt into over-limit charges. Some card issuers have therefore commenced solicitations requesting customers to opt into over-limit fees, presenting this as a benefit as it may avoid the possibility of a future transaction being declined. Other issuers have simply discontinued the practice of charging over-limit fees. Whether a customer opts into the over-limit fee or not, banks will in practice have discretion as to whether they choose to authorize transactions above the credit limit or not. Of course, any approved over limit transactions will only result in an over-limit fee for those customers who have opted into the fee. This legislation took effect on 22 February 2010. Following this Act, the companies are now required by law to show on a customer's bills how long it would take them to pay off the balance.

    Neutral consumer resources[edit]

    Canada[edit]

    The Government of Canada maintains a database of the fees, features, interest rates and reward programs of nearly 200 credit cards available in Canada. This database is updated on a quarterly basis with information supplied by the credit card issuing companies. Information in the database is published every quarter on the website of the Financial Consumer Agency of Canada (FCAC).

    Information in the database is published in two formats. It is available in PDF comparison tables that break down the information according to type of credit card, allowing the reader to compare the features of, for example, all the student credit cards in the database.

    The database also feeds into an interactive tool on the FCAC website.[87] The interactive tool uses several interview-type questions to build a profile of the user's credit card usage habits and needs, eliminating unsuitable choices based on the profile, so that the user is presented with a small number of credit cards and the ability to carry out detailed comparisons of features, reward programs, interest rates, etc.

    Credit cards in ATMs[edit]

    Many credit cards can be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals, even if the ATM belongs to the same bank as the card issuer. Merchants do not offer cashback on credit card transactions because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider, thereby making it uneconomical. Discover is a notable exception to the above. A customer with a Discover card may get up to $120 cash back if the merchant allows it. This amount is simply added to the card holder's cost of the transaction and no extra fees are charged as the transaction is not considered a cash advance.

    Many credit card companies will also, when applying payments to a card, do so, for the matter at hand, at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balances for years, even if they pay off their statement balance each month.

    Acceptance mark[edit]

    An acceptance mark is a logo or design that indicates which card schemes an ATM or merchant accepts. Common uses include decals and signs at merchant locations or in merchant advertisements. The purpose of the mark is to provide the card holder with information where his or her card can be used. An acceptance mark differs from the a card product name (such as American Express Centurion card, Eurocard), as it shows the card scheme (group of cards) accepted. An acceptance mark however corresponds to the card scheme mark shown on a card.

    An acceptance mark is however not an absolute guarantee that all cards belonging to a given card scheme will be accepted. On occasion cards issued in a foreign country may not be accepted by a merchant or ATM due to contractual or legal restrictions.

    Credit cards as funding for entrepreneurs[edit]

    Credit cards are a risky way for entrepreneurs to acquire capital for their start ups when more conventional financing is unavailable. Len Bosack and Sandy Lerner used personal credit cards[88] to start Cisco Systems. Larry Page and Sergey Brin's start up of Google was financed by credit cards to buy the necessary computers and office equipment, more specifically "a terabyte of hard disks".[89] Similarly, filmmaker Robert Townsend financed part of Hollywood Shuffle using credit cards.[90] Director Kevin Smith funded Clerks in part by maxing out several credit cards.[91] Actor Richard Hatch also financed his production of Battlestar Galactica: The Second Coming partly through his credit cards. Famed hedge fund manager Bruce Kovner began his career (and, later on, his firm Caxton Associates) in financial markets by borrowing from his credit card. UK entrepreneur James Caan (as seen on Dragons' Den) financed his first business using several credit cards.

    Alternatives[edit]

    Main article: Alternative payments

    Modern alternatives to credit cards are mobile payments, cryptocurrencies and pay-by-hand.

    See also[edit]

    References[edit]

    1. ^O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action (Textbook). Upper Saddle River, New Jersey: Pearson Prentice Hall. p. 261. ISBN .
    2. ^ ab"The 10 most exclusive credit cards in the world". finder.com. 26 September 2017. Retrieved 13 October 2021.
    3. ^"Top 10 payment cards made out of unusual materials". Payspace Magazine. 18 August 2020. Retrieved 13 October 2021.
    4. ^Schneider, Gary (2010). Electronic Commerce. Cambridge: Course Technology. p. 497. ISBN .
    5. ^ ab"The Nilson Report". October 2019. Retrieved 13 October 2021.
    6. ^ISO/IEC 7810:2003, clause 5, Dimensions of card
    7. ^ISO/IEC 7810:2003 Identification cards — Physical characteristics
    8. ^"For Merchants - MasterCard Unembossed". MasterCard.
    9. ^"Bank Identification Number (BIN)".
    10. ^"ISO/IEC 7812-1:2017 Identification cards — Identification of issuers — Part 1: Numbering system".
    11. ^Dunaway, Jaime (18 April 2018). "Why Are Credit Card Numbers on the Back Now?". Slate. Retrieved 18 April 2018.
    12. ^(Chapters 9, 10, 11, 13, 25 and 26) and three times (Chapters 4, 8 and 19) in its sequel, Equality
    13. ^"Life before plastic: Historical look at credit card materials". creditcards.com. 12 August 2021.
    14. ^Charles Boston (6 March 2013). "Shopping Days In Retro Boston". shoppingdaysinretroboston.blogspot.com.
    15. ^"The Department Store Museum: Charge Cards". departmentstoremuseum.blogspot.com.
    16. ^"Credit card imprinter". Cultureandcommunication.org. Retrieved 28 July 2011.
    17. ^"Hartford Charga-plate Associates, Incorporated, Plaintiff-appellant, v. Youth Centre-cinderella Stores, Inc., Defendant-respondent, 215 F.2d 668 (1954)". Retrieved 11 November 2014.
    18. ^"The Travel Card that gave "CREDIT" to the public". Flying. Vol. 52 no. 6. June 1953. p. 11. Retrieved 11 November 2018.
    19. ^"History Of The Credit Card". www.creditcardprocessingspace.com. Retrieved 14 February 2013.
    20. ^ abMayyasi, Alex. "How Credit Cards Tax America". Pricenomics.
    21. ^O'Neill, Paul (27 April 1970). "A Little Gift from Your Friendly Banker". LIFE.
    22. ^LaMagna, Maria. "Metal credit cards: The latest American status symbol". MarketWatch. Retrieved 7 March 2018.
    23. ^"Credit Card Lending"(PDF).
    24. ^"Understanding how credit card minimum payments are set".
    25. ^Little, Ken. 2007. Personal Finance At Your Fingertips, p. 35 Penguin. ISBN 144062562X, 9781440625626
    26. ^"Report to the Congress on the Use of Credit Cards by Small Businesses and the Credit Card Market for Small Businesses"(PDF). Federal Reserve. Board of Governors of the Federal Reserve System. May 2010. Retrieved 4 May 2015.
    27. ^"5 Business Credit Card Myths That Can Cost Your Business

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