How to Make the Most of Rebate and Cash Back Cards

Guest Contributor
July 7, 2022

2 min read

Rebate and cash back cards offer gig workers a financial boost for expenses that they’re already paying. While the amount back for a single transaction might seem moot, the cumulative amount of multiple transactions’ rebates can add up to a substantial amount if these cards are used well. Here’s how to make the most of rebate and cash back cards if you’re a gig worker.

Step 1: Look for a Debit Card

Both credit cards and debit cards can offer rebates or cash back bonuses, but the latter is preferable if you’re a gig worker.

A debit card only allows you to access funds that are already in your bank account, so you can’t get into troublesome credit card debt with these cards. The interest on even a little credit card debt can quickly add up if you have a lull in available work.

Running expenses through a single bank account and debit card also simplifies bookkeeping. You can easily track all expenses by checking the account statement, and presumably you can track income as long as you run payments through the account.

Simplified tracking not only helps manage weekly and monthly budgets — it also helps ensure you have accurate reporting when tax filing time comes. You’ll be able to see all business expenses that can be deducted, and everything will be demonstrable if you’re ever audited.

Step 2: Avoid Any Banking Fees

Before looking at the reward or cash back that a debit card offers, first make sure no fees are associated with the card. Any monthly maintenance, low balance fee or other assessed charges will erode the rebates you receive, and they could even cancel out your rewards if the fees are too high. No-fee bank accounts and debit cards are also readily available.

Step 3: Use a Card With Category Bonuses

Consider where you spend most often, and look for a debit card that offers bonus cash back for the categories you spend in. Cards offer cash back on a wide array of categories, including dining, travel, fuel, office supplies, specific retailers and more.

For example, the Mastercard Easy Savings® Program offers cash back bonuses on hotels (4%), restaurants (4%) and car rentals (5%). It also offers 1% back on fuel.

Such a rewards program makes sense if you ever travel out of state to different locations for work. You’ll receive a bonus on most travel expenses, which are likely also tax deductions. Even the gas and restaurant bonuses are helpful if you drive around town to meet with clients.

Alternatively, you might consider a cash back card that focuses on office supplies if you rarely travel or meet with clients. A card that has cash back at retailers could work well if you flip consumer goods. The possibilities are virtually endless.