They give you back a percentage of what you spend on the card. This amount is usually deducted from your bill once a year.

For example, if your card gave you 3% cashback, you would get back £90 if you spent £3,000 on the card.

Some cards let you convert your cashback into vouchers instead, and some will boost their value if you do this.

How to choose a cashback card

The best way to choose a cashback card is to find the one that will pay you the most money back on what you will spend on it.

Our comparison table above shows every credit card that pays cashback.

You can select how much you are likely to spend on the card each month or on a one off purchase. We will then show you how much cashback you could earn on each card.

Look for bonus cashback

Some cards offer a higher cashback rate for the first few months, which could boost the amount you earn if you plan to make a large purchase soon after you get the card.

Is there an annual fee?

Some cards come with an annual fee but many do not charge one. However, some of the cards with the highest cashback rates charge an annual fee.

Our table shows the annual fee charged by each card. Deduct the fee amount from the amount of cashback a card would give you. Never choose a card with a fee that is higher than the cashback you would earn.

Should you get Visa, MasterCard or American Express?

It is best to choose the card that will pay you the most cashback rather than only looking for Visa, MasterCard or Amex.

All three process the transactions when you use your credit card, but they do not usually provide the cards (however American Express do offer their own cards too).

Are they right for you?

If you pay off your full statement balance every month and spend enough, cashback cards can give you a free cash reward that you can spend on whatever you like.

However, if you are unable to pay off what you spend every month you will be charged interest, which is likely to come to much more than the cashback you have earned.

If you want to use the card to spread the cost of a large purchase over several months or pay off an existing credit card balance, you could get: