Capital One credit card offers straightforward cash back program

By Jeremy M. Simon

As credit card issuers battle for a prime spot in consumers' wallets, Capital One has chosen to make the experience of earning cash back more straightforward.

With its Capital One No Hassle Cash Rewards credit card, Capital One has made it easier for consumers to translate their purchases into cash rewards.  Under its clear-cut terms and conditions, the Capital One No Hassle Cash Rewards card offers a flat 1 percent cash refund on credit card spending, as well as an additional 0.25 percent annual bonus each November.

What makes Capital One's program stand out is the fact that although other cash back credit cards may provide more generous terms, they frequently have restrictions or additional requirements. 

For example, two Fidelity Investment-branded credit cards offer a flat 1.5 percent cash back, while Emigrant Savings Bank offers cards yielding 1.4 percent.  However, both issuers require consumers to have accounts with their institutions.

Meanwhile, credit cards from American Express and Discover provide greater refunds when used at certain merchants, allowing a consumer to earn 1.25 percent with those credit cards when they are used in the most favorable combination.  Still, AmEx and Discover often require cardholders to reach preset spending tiers before the best deals take effect.

The Capital One No Hassle Cash Rewards credit card has no annual fee for consumers with credit that is above average or better.  Also, the card sets no limits on annual cash back earnings and has no other common restrictions.

Just as any with any cash back credit card, Capital One is able to earn money on its No Hassle Cash Rewards product if enough cardholders only pay part of their monthly bills.  Issuers are able to fund such credit cards through a combination of annual interest charges and the fees collected from merchant transactions.

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Published: March 2, 2007

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