Best cash back credit cards

Some folks love to play the “rewards game” with credit cards, racking up miles or points and figuring out the most efficient way to convert them into flights, gift cards, or other experiences. Others think that managing a complex reward or airline card isn’t worth the work, and prefer the ease of a cash back card, which pays you in cash or statement credits for every purchase you make.

If getting paid by your credit card company sounds great, check out the following credit cards that we think are among the best cash back cards on the market right now.

The Blue Cash Preferred Card from American Express has the highest cash back rate (6%) you’ll find on U.S. streaming services, paying 6% cash back on dozens of options, including Spotify, Netflix, and Apple+, along with a $7 per month statement credit for the Disney Bundle (which includes Disney, Hulu, and ESPN+; enrollment required). It also delivers a hefty 6% cash back on purchases at U.S. grocery stores (up to $6,000 in spending, then it goes down to 1%).

• $0 annual fee in year one ($95 per year after that; see rates and fees)
• Earn 6% cash back at U.S. supermarkets (up to $6,000 in purchases) and streaming services; 3% cash back on transit and at U.S. gas stations; 1% cash back on all other purchases
• $10 monthly credit for Equinox membership (enrollment required)
• Terms apply

• Supermarket rewards are capped after $6,000 in spending, and exclude purchases from warehouse stores like Costco or Sam’s Club, superstores like Walmart and Target, or online grocery purchases.
• Cardholders who spend the most in categories outside of streaming and groceries might do better with a different cash back card.

The Capital One Quicksilver Cash Rewards credit card offers not only 1.5% cash back, but also many of the credit card perks that come with higher-end cards, including extended warranty and price drop protection, as well as protection against damage or theft of new purchases.

• No annual fee
• Unlimited 1.5% cash back on every purchase, plus 5% cash back on hotels and rental cars booked through Capital One Travel
• 0% APR on both purchases and balance transfers for 15 months (3% balance transfer fee applies)

• Other flat-rate cash back cards pay more than 1.5%
• Cardholders who spend a lot in certain categories might get more cash back from a card that has bonus categories

• No annual fee (see rates and fees)
• Earn 3% cash back at U.S. supermarkets, on most U.S. online retail purchases, and U.S. gas stations up to $6,000 per year per category (and 1% after); 1% cash back on all other purchases
• Statement credits of $84 per year for the Disney streaming bundle and $180 per year for Home Chef (enrollment required)
• Terms apply

• Rewards in bonus categories are capped, limiting earning potential for big spenders
• This is the only card on our list with a foreign transaction fee (2.7%), making it a poor choice for travelers

The Ink Business Unlimited Credit Card pays unlimited 1.5% cash back on all purchases, making it a user-friendly card for busy business owners who don’t want to spend time tracking and managing rewards.

• No annual fee, an anomaly among cash-back business cards
• Earn 5% cash back on Lyft rides; and 1.5% cash back on all other purchases
• Flexibility to receive cash back through a statement credit or direct deposit to most bank accounts or redeem as points through the Chase rewards portal to buy gift cards or book travel

• Other flat-rate cash back cards pay higher rates
• Business owners who spend in specific categories might do better with a card that has bonus categories

If your business spends a lot on travel, the Capital One Spark Cash Plus card could be the card for you: You can earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.

• Earn unlimited 5x cash back on hotels and rental cars booked through Capital One’s travel portal and 2x cash back on all other purchases
• Straightforward rewards program that doesn’t require tracking spending or activating rewards
• Flexibility to receive cash back in a statement credit or check on demand, or to set up automatic cash back at a specific calendar date or when your rewards reach a certain threshold.

• $150 annual fee (refundable if you spend $150,000 per year)
• Other cards with a comparable annual fee may offer more travel perks and higher reward rates on some non-travel spending

With a flat, 2% cash back rate on all purchases, which you can also put toward credit card rewards, Citi Double Cash Card offers the ease of a cash back card with the flexibility to redeem for more traditional rewards.

• No annual fee
• Earn 1% cash back on all spending when you make a purchase and another 1% when you pay
• Flexibility to get cash back via statement credit, direct deposit, or check, or to redeem it through the Citi rewards program for gift cards or travel

• Cardholders who spend a lot in certain categories might get more cash back from a card that has bonus categories
• 3% foreign transaction fee means this isn’t the best card for frequent international travelers 

The Citi Custom Cash card automatically tracks your spending each month and awards you 5% cash back on your largest category (up to $500 in spending per month).

• $0 annual fee
• Earn 5% cash back for your top spending category each billing cycle (up to $500 in spend) and 1% cash back on all other purchases
• You can maximize the rewards available to you on this card without having to keep track of or activate bonus categories

• The $500 limit on bonus categories each month may be low for some big spenders
• 3% foreign transaction fee makes this card a poor choice for frequent international travelers

It pays a straightforward, flat 2% cash back on all purchases.

• $0 annual fee
• Earn 2% cash back on all purchases
• Flexibility to redeem your cash back through statement credits or gift cards, have them credited to a Wells Fargo bank account, or trade in for gift cards

• No bonus categories, so those who spend a lot in some areas might do better with other cards
• 3% foreign transaction fee makes this card a poor choice for frequent international travelers

The Chase Freedom Unlimited card pays 3% cash back on restaurant spending, including for takeout and some delivery services.

• No annual fee
• Earn 5% cash back on travel purchased through Chase Ultimate Rewards; 3% cash back on dining and drug store purchases; 1.5% on all other spending
• Flexibility to receive cash back through a statement credit or direct deposit to most bank accounts or redeem as points through the Chase rewards portal to buy gift cards or book travel

• Cardholders who spend a lot in categories outside of restaurants and travel might do better with a different card
• 3% foreign transaction

Cash back is a type of rewards credit card in which the rewards are paid in a percentage of cash back (usually 2% or less) for every purchase. Depending on the card, you can receive cash back via a statement credit, a check or direct deposit.

Cash back credit cards work like all other credit cards, in that you use them to make purchases and then receive a bill at the end of each month. You can either pay off the bill in full or pay a portion of it and allow the balance to accrue interest. Cash back cards automatically track your spending to determine how much cash back you’re eligible to receive each month. 

No, you do not have to pay taxes on cash back received through your credit card. The IRS does not consider this type of payment taxable income.

The right cash back credit card for you will depend on several factors, including the categories in which you spend the most money, whether you’re comfortable paying an annual fee, and your credit score.

Yes, cash back credit cards can be a great way to get started with a credit rewards card, and the amount of cash back you earn can add up significantly if you use the card to pay for most purchases. However, if you carry a balance on your credit card, it’s not worth it to spend to earn cash back since the interest you pay will cost more than the value of the cash back.

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].