According to the World Bank, more than 96% of Canadians over 15 have a debit card. Debit cards allow owners to withdraw cash or make purchases using their own funds. In comparison, credit cards may be used to finance purchases or take out cash using borrowed money.
It’s tempting to think using your own funds is always better than using borrowed funds—but this isn’t always the case. In this article, we explore how cash back credit cards are better than prepaid cards (a type of debit card with a fixed amount of money loaded onto it).
Cash Back Credit Cards Offer Discounts in the Form of Rebates
Why pay full prices when you can get a percentage discount? That’s the basic premise behind cash back credit cards! Unlike prepaid cards, cash back cards give you a rebate on certain purchases covered by the bank’s cash back policy.
For instance, if you own an AMEX SimplyCash card, you’re eligible for 4% rebates on groceries and gas plus an additional 2% on all other purchases. This might not seem like much on its own, but the savings will pile up before you know it—and it’s a much better deal than getting zero rebates using prepaid cards!
Unlike Prepaid Cards, Cash Back Credit Cards Don’t Require Constant Management
Anotherkey benefit of cash back credit cards pertains to managing the account. In simple words, cash back credit cards only require you to log into your account once a month and settle the outstanding amount before the due date. In contrast, prepaid cards require owners to undergo the hassle of constantly topping them up when the limit’s reached.
Learn About the Best Cash Back Credit Cards for Online Shopping Through Great Canadian Rebates
If you’re keen to switch from prepaid cards to cash back credit cards but are unsure which one to take out, it’s time to head to Great Canadian Rebates!
We offer a fantastic comparison page that lets you check various features and benefits of Canada’s best credit cards.
Visit the website today to learn what makes us one of the best Canadian cash back sites around.