Rewards Program
GeneralGlossary term
Definition
A credit card incentive system offering cashback, points, or miles for purchases. Value varies by redemption method, with travel typically offering the highest value per point.
Related terms
- CashbackA credit card reward that returns a percentage of purchases as cash. Common rates are 1-2% on all purchases, with higher rates (3-5%) on specific categories like gas or groceries.
- Credit Card PointsRewards earned on credit card purchases that can be redeemed for travel, merchandise, gift cards, or statement credits. Value varies by card but typically 1 point = 1 cent.
- Travel MilesAirline or hotel loyalty points earned through credit card spending. Typically 1-3 miles per dollar spent, with bonus miles on travel purchases. Can be redeemed for flights, hotels, or upgrades.
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