With Crypto Rewards Looming, Should You Choose Cashback or Points Programs?

By Cillian Wilson
Published November 21, 2018 Updated July 24, 2020
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With Crypto Rewards Looming, Should You Choose Cashback or Points Programs?

By Cillian Wilson
Published November 21, 2018 Updated July 24, 2020

Earlier this year, a young entrepreneur shared an interesting concept: Plans for a new credit card that offered cryptocurrency instead of cashback or travel rewards. The card, known as Blockrize, attracted a waiting list of 2,000 people, despite not even having a banking partner to issue it.

The phenomenal early popularity of the idea provokes some interesting possibilities, not least that others are likely to emulate it soon enough. This could arguably facilitate a scenario in which cashback and rewards points eventually translate into cryptocurrency.

Assuming that such a likelihood looms, we, therefore, felt this article would be prescient: Is it better to choose the former or the latter? Let’s take a look at which of the two would benefit you most.

Cashback versus points: what’s the difference?

Source: Pixabay

When it comes to credit cards, there is a multitude of ways in which providers try to entice consumers in: Credit cards with cash bonus are one common incarnation; credit cards with points, miles, or cashback a few others. The aim is always the same – to draw people in by making it worth their while to sign up.

Two of the most popular formats are two we mentioned above – points and cashback. So what’s the difference between them, and which offers greater advantages to you?

The main variance is the flexibility they offer. Though both function in a similar manner, in that you purchase something using your credit card and receive a “thank you” reward in return, the ways you can use these incentives are a little different.


Reward points can be “claimed” at a designated location in exchange for certain products or services. The exact value of the points differs between programs.


Compared to reward points, cashback offers a greater degree of flexibility. Essentially, these cards work by returning a percentage of your spending on them. This number may vary depending upon the purchase location or type, and is typically paid as either store vouchers or statement credits.

Which one should you pick?

Source: Pixabay

Now, let’s assume that cryptocurrency credit cards are soon to become a thing, and you’re about to be faced with a choice between either a cashback credit card or a points program – which of the two should you choose?

The answer varies between individuals, but these are the prescient factors you ought to take into account when making your decision.

Firstly, points are often worth more than cash back. That said, it can necessitate some rather savvy management in order to extract their full value. In addition, some programs will require you to use all of the points you earn within a certain period or forfeit them entirely. With this to consider, we’d suggest they’re most suitable for those who don’t mind taking the time to study their exact mechanisms and how to maximize their value.

Cashback, on the other hand, will likely offer a lower rewards rate but, that said, is typically much simpler to redeem and easier to understand and take advantage of.

Tell us, which of the two would be more beneficial to you?


The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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