Several credit cards come with a reward if you use them for purchasing things. You may be provided with rewards, cash back or incentives. The points you obtain like this can be used on merchandise. They can be also used on a few other services available from several merchants.

These cards can also permit the user to designate the cash-back points for a charity. These cards are also referred to as affinity cards often. This is a very interesting deal. You pay the required amount to buy something that you like and you are able to have the cash back or you get something as a gift.

But there is one point to remember. You will have to pay interest and the card fees to able to have the reward. But this is not a big deal as you will use the credit card for some purpose. So it is always good to get something back on the purchases made by the card. This is the concept of many people.

Now let us have a look at the rate of cash back. Most of these cash-back or rewards card provide you a cash back rate of one to two percent. This is provided in most of the purchases made using the card. A check will be provided to you. This is done at the specified time. You are able to cash these checks. The money obtained can be spend as you like. You are free to buy whatever you want with this money.

You can also have the reward points on these rewards cards. Generally the reward points given are 1 to 5. This is given for your money that is spent at the various merchants or the types of the merchants. Most of them give a reward point of five for the purchases done at the network that is called –Merchant Thank You-. The points are also given for the purchases made at the following: supermarkets, drug stores and at the gas stations. For the money spent at the other merchants a reward point of one is obtained. These points provided to a person can be redeemed for specific items available from merchants belonging to the network of merchant’s credit card.

However the rewards are not completely free of drawbacks. Each type of the reward can have it`s own merits and demerits. So you have to make the perfect choice. This is up to you and to an extent depends on what you need.

Let us see what the advantages are first. The cash obtained thus can be used everywhere. Besides the percentage of the cash-back is 1-2 % and is available on almost all the purchases.

The disadvantage is that the cash obtained through the cash-back facility is available for a person only on the issuing of a check.

The advantage of reward points is that they may provide rewards with a higher value, especially for purchases at the network stores.

The disadvantage is that these can be redeemed only from specific merchants or merchandise. Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.