5% Cash Back – 2023

5% cash back is a great value proposition for credit card customers. Credit card issuers offer 5% cash back up to a certain spend limit on selected spend categories and merchants. This means that for every eligible purchase made in those categories, the cardholder receives 5% of the purchase amount back as a cash reward. Chase and Discover credit cards customers are required to activate these offers by accessing online account or through mobile app. There is a start date and end date to activate these offers.  Citi Custom Cash customers automatically earn 5% cash back on the highest spending category every month on up to $500 of purchases.


Purchase Limit

(for 5% cashback)

Jan-Mar 2023Apr-Jun 2023Jul-Sep 2023Oct-Nov 2023


Upto $1,500Grocery stores (excludes Walmart), Target and fitness clubs and gym membershipsAmazon.com and Lowe’s

Gas Stations, EV Charging and Select Live Entertainment

Coming September 15

(2022: PayPal; Walmart)

DiscoverUpto $1,500Grocery Stores, Drug Stores and select streaming servicesRestaurants and Wholesale ClubsGas Stations and Digital Wallets

Coming September 1

(2022: Amazon.com and Digital wallets)

CitiUpto $500 monthly

5% cash back eligible categories: Restaurants, gas stations, grocery stores, select travel, select transit, select streaming services, drugstores, home improvement stores, fitness clubs, live entertainment.

No activation required. Customers automatically earn 5x points or 5% cash back on the highest spending category

Here are some key features and considerations of a 5% cash back credit card:
Earning Cash Back: With a 5% cash back credit card, you typically earn 5% cash back on eligible purchases in specific spending categories and merchants. These categories can vary among different credit cards but commonly include areas like gas stations, grocery stores, restaurants, or rotating quarterly categories.
Spending Caps and Limits: Some 5% cash back credit cards may have limits on the amount of cash back you can earn in a certain category or within a specific time frame. For example, you may only earn 5% cash back on up to a certain amount of purchases per quarter or per year.
Rotating Categories: Certain 5% cash back credit cards have rotating quarterly categories, meaning the 5% cash back offer changes every few months. Cardholders need to activate these categories each quarter to be eligible for the increased cash back rate.
Other Spending Categories: Besides the 5% cash back category, these cards may also offer a lower cash back rate, typically 1% or 2%, on all other purchases outside the designated categories.
Redemption Options: Cash back rewards can usually be redeemed as statement credits, deposited into a bank account, or sometimes used for other redemption options like gift cards or merchandise. The redemption methods and minimum thresholds may vary by credit card issuer.
When considering a 5% cash back credit card, it’s important to evaluate your spending habits and determine if the designated categories align with your regular expenses. Additionally, take note of any spending caps, activation requirements, or limitations associated with the card’s cash back program. Comparing multiple credit card options and their specific terms and conditions can help you choose the best 5% cash back credit card that suits your needs and maximizes your cash back rewards.
Popular 5% Cash Back Credit Cards:
Check other popular Cash Back credit cards