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earn points on your gift card purchases and avoid paying the fees associated with reloadable prepaid cards, this credit card may be worth considering. It offers 5% back on gift card purchases at merchants listed on the website.

However, the list of participating merchants can change without notice. And, shipping or purchase fees eat into the rewards you can earn.
Earn 5% Back on Every Purchase

As credit card issuers continue to fight for your business, cash back rates have risen above the 1% mark. In fact, you can now earn 5% back in rotating categories on a number of cards. While these rewards can add up, there are some important considerations to keep in mind before applying for a 5% cash-back credit card.

For example, some 5%-back credit cards require you to activate each quarter's bonus categories, while others only offer the top reward rate on specific purchases (e.g., groceries). In either case, you need to make sure the rewards you earn align with your spending habits. And you should also consider whether the card's other features — such as a sign-up bonus, APR and annual fee — outweigh the 5% rewards.

The Five Back Gift Card is a new Visa gift card that offers a 5% cash back at the retailers listed on its website. Unlike other gift cards, this card can be used anywhere Visa is accepted. Cardholders can register their card on the Five Back website for added security and to provide a more accurate record of their transactions. This can help in locating the card if it's lost or stolen. Additionally, registration makes it easier to replace the card if necessary.

Getting a 5% cash back on every purchase might sound preposterous and might prompt a healthy fit of chortles from credit card enthusiasts. However, it's a bit more feasible than you might think. As a result, these cards are becoming increasingly popular among savvy spenders looking to maximize their rewards.

A few of the cards that offer a 5% cash-back reward include the Citi Custom Cash, Chase Freedom Flex and Discover it Cash Back. These cards earn 5% back in quarterly bonus categories that you choose and then 1% on all other purchases. The categories typically repeat each year and include such items as drugstores, online shopping and home improvement stores – all places where you can buy gift cards.

The 5% cash-back credit card offered by the convenience store chain Enmarket also offers a similar benefit to those interested in earning 5% back on gas purchases, grocery store purchases and other select purchases. The Enjoy Rewards card allows customers to get a fuel discount of up to $2 per gallon on fuel purchases at participating Enmarket locations, as well as earn rewards in the coffee club, frozen beverage club and roller grill club. The card also offers a $200 sign-up bonus after spending $1,000 in qualifying purchases within the first 120 days of opening an account.
Earn 5% Back on Your Gas Purchases

For those who spend a lot of time behind the wheel (whether for long commutes, road trips or everyday life), a rewards credit card that earns 5% back on gas purchases can help make spending at the pump slightly more palatable. Here are a few of the top options.

Depending on your personal preferences, you may want to go with a card that offers a flat-rate cash back on all purchases, or one that has rotating categories with a quarterly cap. With the Bank of America Customized Cash Rewards Secured Card, for example, you can choose a specific category (gas, online shopping, travel, dining, drugstores or home improvement and furnishings) that you'll reap 3% cash back on each quarter (up to the first $1,500 spent in the 5% category). Then, the card will switch to 1% back on all remaining purchases each month.

The Citi Premier Card, on the other hand, gives you a much better return on all purchases, with no limit to how much you can earn. According to the Points Guy, you can redeem Citi ThankYou points at 1.7 cents apiece, which makes this card an excellent choice for frequent travelers who want to get the most out of their fuel spending.

Finally, if you prefer the flexibility of a flat-rate card, consider a credit card like the PenFed Platinum Rewards Visa Signature Card. It gives you 2% unlimited cash back on your choice of category, including gasoline, plus 1% on all other purchases. This card is a great option for people who regularly spend at a variety of stores, from new parents stocking up on baby necessities to remote-workers furnishing their home offices.

For more on the best cards for gas, check out our full list of top credit cards of 2023 and see how you can stack up against your peers. And if you're in the market for a new car, be sure to shop with our partner, U.S. Bank, to receive a special offer on select models. See how you can save up to $3,000 on a new U.S. Bank vehicle.
Earn 5% Back on Your Grocery Purchases

The grocery store is one of America's biggest spending categories, and credit card companies offer a wide range of rewards for Americans to use at the supermarket. Some cards let you earn 5% back on your purchases, saving you hundreds of dollars each year. However, a few key factors can make a big difference in the type of earning potential you get from a rewards card and how much money you save.

Each card issuer has its own rules about what qualifies for bonus earning and how those earnings are credited to your account. That's why it's important to check your specific cardholder agreement before making any purchases. Some cards, for example, exclude certain kinds of purchases such as gift card and convenience store purchases or don't offer a bonus rate on online shopping.

Another factor is whether or how you pay at the supermarket. Whether you use your card as a debit card, an electronic wallet or a mobile app, for instance, can impact the amount of rewards you get. And you should also know that some credit cards won't earn you bonus rewards on purchases made with cash or a paper check.

Lastly, you should know that your credit card's terms can change at any time and could limit or eliminate your earned rewards. Check out the latest terms for your credit card, and if you're not happy with them, consider switching to a new card.

In addition to the 5% back you can get on grocery store purchases with Five Back, you can also earn rewards for gas and dining out with this card. You'll earn 2% back on these purchases each quarter when you choose them as your 2% category, and 1% on all other purchases.

Many cards offer a 5% rate on groceries as part of their rotating 5% cash-back categories, including the Chase Freedom Flex and the Blue Cash Preferred Card from American Express. The former offers the 5% bonus on groceries for the first 12 months, while the latter gives it to you 365 days a year. Keep in mind, though, that those cards also have annual fees.
Earn 5% Back on Your Entertainment Purchases

If you spend money at restaurants, movie theaters, amusement parks and other entertainment venues, consider getting a Visa gift card with 5% back on your purchases. The Five Back card is available in stores and online from a growing list of merchants, including CVS, Costco, Target and more. The card is issued by Blackhawk Network and is usable anywhere Visa debit cards are accepted. The initial purchase of the card costs $6.95 and you get 5% of the transaction amount loaded back to your card when you make a purchase at a participating merchant.

Another card worth considering is the Bank of America Customized Cash Rewards credit card, which earns 3% back in categories you choose each quarter up to $2,000 spent (then 1%). These include drugstores, online shopping and home improvement stores, many of which sell gift cards. It also offers 2% back at grocery stores, wholesale clubs and gas stations, and 1% at all other locations. You can redeem your cash back for a statement credit, deposit it in a U.S. Bank account or transfer it to a prepaid card.

Other rewards cards that are good for gift card purchases are the Chase Ink Business Cash credit card and the American Express Platinum Credit Card. The Ink Business Cash earns 5% back at office supply stores, which carry a wide selection of gift cards for retailers that don't fall into common bonus categories on other cards. You can also use the Ink Business Cash to buy gift cards at retailers like Nordstroms, Bass Pro Shop and Nordy Club to earn a higher rewards rate.

The Platinum card has a similar bonus category for gas station and convenience store spending, as well as a 5% bonus on dining at restaurants in the Marriott Rewards program. You can earn the 5% bonus on up to $1,500 in purchases each calendar quarter, which is a significant boost if you're a frequent diner.

When comparing the cost of gift cards, be sure to factor in the purchase and shipping fees. The purchase fee varies based on the size of the card you choose, and many options come with a customization charge for adding a picture or personal message to the card.