How exactly do Credit Card rebates work?

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sc300jz
 
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How exactly do Credit Card rebates work?

Postby sc300jz » Fri Apr 09, 2010 2:33 am

Well i'm planning to get a credit card since my debit mastercard closed down..(lost card, called to cancel, found it, ask to reactivate, activated for a few days left).. I asked if i could get a mastercard they said no, since they have been bought out by visa..

I buy from a site that gives me 50% off items and i was wondering how it works if i buy it with a Credit Card since its not my money.

For example, If i buy something for $200.00 and i wait 4-5 days and i get rebated, do i only have to pay $100.00?

Or am i way off?

Thanks guys.


cpaynter
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Postby cpaynter » Mon Apr 12, 2010 9:22 am

I'm not sure I understand your question. In general with cash back cards, you get a percentage cash back (at some time in the future) based on the net amount charged to your card. How and when is highly dependent on the card. On some cards (e.g. Schwab Visa), you get your cashback deposited to a bank account the month after you earn it. On other cards (e.g. AmEx Blue Cash, CostCo/AmEx TrueEarnings card), you get a check once a year for the accumulated rewards. In probably the majority of cases, you continue to earn cash back until your balance reaches a redeemable level (say, $25 or $50), at which time you can request a check or statement credit for the redeemable amount. In some cases, you can get a better return by saving up to a larger cash back balance (e.g. $250 check for $200 of accumulated cash back balance).

Rebates can be a good way of increasing your return. In a typical rebate scenario, you pay $x, file your rebate forms, and get a check in the mail for a portion of the purchase price. If you put that $x on a cash back credit card, then you are earning cash back on $x, despite the fact that you'll be getting part of that back. If that's the way your rebate site works, and you have a cash back card that gives, say 2% cash back, then it would be something like this:

1) You place your order and charge $200 on your credit card.
2) You receive your product, fill out the rebate forms and send them in.
3) Your credit card statement is cut, showing $4 of additional earned cash back.
4) You receive a rebate check in the mail from the manufacturer or merchant for $100.
5) At some time in the future, you receive that $4 cash back as part of a larger check or statement credit.

Chris.

DoingHomework
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Postby DoingHomework » Wed Apr 14, 2010 12:07 pm

If the SITE is giving you a 50% rebate then you still have to pay the full bill to the credit card company and then wait for your rebate.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Wed Apr 21, 2010 4:29 pm

Unless the rebate is given before payment is made, you will have to pay the full amount. For the example you mentioned, that means your credit card would be charged $200.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

westonhaus
 
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Postby westonhaus » Wed Jun 16, 2010 2:54 pm

What about airline rebates. THey are confusing now and don't add up. I thought that 25000 miles always was enough for a roundtrip ticket domestic but now I have found that it takes almost 40000 to 60000 to get a basic ticket. Why can they advertise the 25000 miles for a ticket when there are so many exceptions?

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alsteig
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Read The Fine Print

Postby alsteig » Fri Jun 25, 2010 9:01 pm

The reason that some airlines IE: Southwest offer domestic fares for 25k pnts is that not ALL flights at all times are covered. Read the fine print. You are dealing with a for profit company. Their are teaser rates annual fees and restrictions. Obviously their is such thing as bait and switch which is a fraudulently marketing technique, but most of the time the consumer fails to read the fine print.

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alsteig
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Postby alsteig » Fri Jun 25, 2010 9:06 pm

sc300jz wrote:Well i'm planning to get a credit card since my debit mastercard closed down..(lost card, called to cancel, found it, ask to reactivate, activated for a few days left).. I asked if i could get a mastercard they said no, since they have been bought out by visa..

I buy from a site that gives me 50% off items and i was wondering how it works if i buy it with a Credit Card since its not my money.

For example, If i buy something for $200.00 and i wait 4-5 days and i get rebated, do i only have to pay $100.00?

Or am i way off?

Thanks guys.



Credit card company and retailer are separate companies. Your rebate is done with the retailer. same as cash. The card company is effectively dumb you say spend this amount and it charges. You deal with the rebate on your own.



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