How do credit card rewards work?

Cashback cards return a fixed percent of spend (1-6%). Points cards earn currency-flexible points (Chase UR, Amex MR) that redeem at varying rates depending on how you spend them.

Cashback is simple: spend $100, get $1-$6 back depending on category and card. Points cards add a redemption-skill layer: the same point can be worth 1 cpp through a portal or 2+ cpp through a transfer-partner sweet spot. Our methodology scores effective rate at conservative cpp benchmarks (1.5 cpp Chase UR, 1.4 cpp Amex MR, 1.0 cpp Capital One default) — not issuer marketing rates.

Reviewed by the ClearValue Editorial Team · Last updated 6/29/2026