Cashback on reward credit cards

The_Urbanite

Capital on Tap calculate it as a fixed percentage of cumulative monthly spend and make it available to redeem once the minimum payment has been made for that month’s statement.

HSBC calculate it per transaction and it is available to redeem a couple of days after the qualifying transaction. 

John Lewis and M&S pay out based on total quarterly spend then post out vouchers every quarter.

Very different for all cards - there is no “standard” as has been implied. 

jbrassy

Dandytf said:

jbrassy said:

As others have said, it depends on the card.

Amex pays cashback per transaction, so if you buy something for £4.99 you get 3p (0.75%) cashback. The cashback is paid annually.

Capital One sums up the amount you have spent over the month then calculates the cashback based on that. So if you spend £100 over a month, you get 50p (0.5%) cashback. This again is paid annually.

Barclaycard pay it per transaction as per Amex. However Barclaycard give you the option to have it paid annually or monthly.  

Interesting, I'm recent Amex card user, I wondered what happens with my building cashback credit,
is your comment for all Amex cards, think mines is Platinum or similar.

thanks

My comment is based on my experience of Amex Platinum cashback. Can't speak for other Amex cards, but would presume it's the same.

Fingerbobs

The_Urbanite said:

Capital on Tap calculate it as a fixed percentage of cumulative monthly spend and make it available to redeem once the minimum payment has been made for that month’s statement.

HSBC calculate it per transaction and it is available to redeem a couple of days after the qualifying transaction. 

John Lewis and M&S pay out based on total quarterly spend then post out vouchers every quarter.

Very different for all cards - there is no “standard” as has been implied. 

Just to clarify, I was specifically referring to cashback cards that give you a percentage of your spend as money, not "points" or "voucher" schemes, and was referring only to the accrual calculation method, which in my experience of using multiple different cashback cards over many years has always been the same (percentage of cumulative spend each statement period, or calculation on each transaction to a precision that equates to this). The frequency and options for payout of the cashback differs. Amex appears to be anomalous in calculating cashback as a percentage of each individual transaction. 

I'm not saying it's a "standard" but it has certainly been the norm in my experience - for cashback cards.