Phil for Humanity Phil for Humanity
A Guide for the Survival of Humankind and Helping the World, Society, and Yourself.

Cash Back from Credit Cards

Nowadays, it is relatively easy to find and obtain a credit card that offers cash back. Typically, these credit cards have a fifty dollar ($50) minimum before any cash is rewarded back to the credit card customer. This means that if a credit card offers a two percent (2%) cash back, a person would have to spend about two thousand five hundred dollars ($2,500) to earn fifty dollars ($2,500 * 0.02 = $50) cash back.

In the past, if a person earned fifty five dollars ($55), then that person would have to call the credit card company to request that a check of fifty five dollars ($55) be mailed to them. However, credit cards are now restricting only fifty dollar ($50) checks instead. So that if someone has earned fifty five dollars ($55), then a fifty dollar ($50) check would be issued and the remaining balance ($5) would rollover for the next time that the earned cash back balance is fifty dollars ($50) or more again.

In my opinion, credit cards went from being inconvenient to being worse. Why do we, the credit card customers, need to call to get our money? I realize that if we do not call, then credit card companies keep the money. I also realize that the longer the credit card companies hold onto our money, they are earning more interest from our money.

However I find that life is too busy and complicated to have to continuously check each monthly credit card statement for by cash back total, and then call the credit card company to get my money, and then deposit this check. Instead, this should be an automatically done for us. We do live in the age of computers after all. I would even save the credit card companies money, since they would not have to send me a physical check anymore. Instead, I prefer to directly credit my credit card balance, so I do not have to be bothered with depositing a check.

As for limiting the cash back checks to only fifty dollars ($50), I find this practice to be just plain greedy. This is obviously greedy, since it was not like that before. The credit card companies are doing the opposite of what they should have been doing in my opinion. For example, if I only earned four dollars ($4) for a particular month, then these four dollars ($4) should be automatically and immediately applied to my credit card balance. I should not have wait until I have earned any minimum amount to get my cash back. I should not have to verify my cash back balance during each monthly statement. I should not have to call the credit card company to ask for my money to be sent to me. Credit cards should not waste their money mailing physical checks to their customers. And I should not have to waste my time depositing a check.

I would think that this type of service would attract more customers, since it would truly stand out from their competitors who continue using outdated and inconvenient business models.

by Phil for Humanity
on 05/07/2009

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