Apple Pay has revolutionized the way we make payments, offering a secure and convenient digital wallet for our transactions. Beyond its ease of use and security features, Apple Pay offers a valuable benefit that can put money back in your pocket: cash back. In this article, we’ll explore what Apple Pay cash back is, how it works, and how you can make the most of this rewarding feature.
What is Apple Pay Cash Back?
Apple Pay Cash Back is a rewards program that allows you to earn a percentage of your purchase amount back as cash or rewards when you use Apple Pay for eligible transactions. It’s a way for Apple Pay users to enjoy additional benefits beyond the convenience and security of digital payments.
here are two ways to earn Apple Pay Cash Back:
- Use your Apple Card: When you use your Apple Card to pay with Apple Pay, you will earn 2% Daily Cash back on all purchases.
- Use the Apple Pay Cash card: When you use the Apple Pay Cash card to pay with Apple Pay, you will earn 1% Daily Cash back on all purchases.
Daily Cash is automatically added to your Apple Cash balance, which you can use to make purchases, send money to friends and family, or withdraw to your bank account.
How Does Apple Pay Cash Back Work
The process of earning cash back with Apple Pay is straightforward:
- Link a Card: To get started, you need to link a credit or debit card to your Apple Pay account. This card will be used for your Apple Pay transactions.
- Shop at Participating Merchants: Look for stores, apps, or websites that accept Apple Pay. Many retailers and online platforms offer cash back incentives for using Apple Pay.
- Make a Purchase: When you’re ready to make a purchase, simply use Apple Pay as your payment method. Follow the usual steps to authorize the transaction using Face ID, Touch ID, or your passcode.
- Earn Cash Back: After the transaction is complete, you’ll earn cash back or rewards based on the terms of the promotion. The cash back amount is usually a percentage of your purchase, and it varies by retailer and offer.
- Redeem Rewards: Depending on the specific program, you can redeem your earned cash back as a statement credit on your linked card, receive it as a direct deposit, or use it for future purchases.
Making the Most of Apple Pay Cash Back:
Here are some tips for maximizing your cash back rewards with Apple Pay:
- Check for Offers: Regularly check the Apple Pay app or your card issuer’s app for cash back offers at participating merchants.
- Stack Rewards: Combine cash back offers with existing rewards programs from your credit card or the retailer to maximize your savings.
- Use It Wisely: Use Apple Pay for your everyday purchases to accumulate cash back over time.
- Stay Informed: Be aware of any terms and conditions associated with cash back offers, such as minimum purchase requirements or expiration dates.
- Security First: Always prioritize the security of your transactions and personal information when using Apple Pay.
How to use Apple Pay Cash Back
To use Apple Pay Cash Back, you must first enable the program. To do this, follow these steps:
- Open the Wallet app on your iPhone or iPad.
- Tap the Apple Pay Cash card.
- Tap the More button (three dots in the top-right corner).
- Tap Apple Pay Cash Back.
- Tap the Enable button.
Once you have enabled Apple Pay Cash Back, you will automatically start earning rewards when you pay with Apple Pay.
Benefits of using Apple Pay Cash Back
Apple Pay Cash Back is a convenient and rewarding way to earn rewards for using Apple Pay. The program is easy to use and offers a variety of benefits, including:
- No fees: There are no fees associated with using Apple Pay Cash Back.
- No limits: You can earn unlimited Daily Cash back on all purchases with Apple Pay.
- Flexible rewards: You can use your Daily Cash balance to make purchases, send money to friends and family, or withdraw to your bank account.
Apple Pay Cash Back FAQs
While the information above covers the basics, here are answers to some other common questions regarding Apple Pay and earning cash back.
Is the Apple Card worth it to maximize cash back?
The Apple Card comes with no annual fee and offers 3% cash back on Apple Pay purchases from select merchants, 2% cash back on all other Apple Pay purchases, and 1% cash back when you use the physical card.
That 3% earning rate is above-average for a no-annual-fee card. Unfortunately, it’s limited to the following merchants:
– Ace Hardware
– Apple
– Duane Reade
– Exxon
– Mobile
– Nike
– Panera
– T-Mobile
– Uber
– UberEats
– Walgreens
Outside of those merchants, the 2% cash back you’ll earn using Apple Pay is another plus feature.
The question then comes down to how much of your typical spending you can earn either 2% or 3% cash back on.
If the vast majority of your spending will fall within one of the 3% back merchants or stores that use Apple Pay, the Apple Card is a solid choice. It’s likely not the highest and most optimized strategy for maximizing your cash back (see below), but it may very well be the easiest — especially if you’re not someone who wants to spend time hunting for the absolute perfect rewards credit card.
Are there credit cards that pay higher rewards for using Apple Pay?
The U.S. Bank Altitude Reserve Visa Infinite Card offers 3x points per dollar on Apple Pay and mobile wallet spending. You can redeem your points for travel through the U.S. Bank booking portal at a rate of 1.5 cents per point.
In other words, you’re getting 4.5 cents in value for each point you earn.
The annual fee on this card is steep at $400, but that fee is offset with $325 in annual statement credits when paying for dining or travel with the card.
If you’re a high-spender on digital wallets, this is certainly a card to look into.
Can you get cash back on debit card purchases through Apple Pay?
As a general rule, debit card purchases are not eligible for cash back. However, if you have one of the very few debit cards that is an exception to this rule, you’ll earn your normal cash back rate when using that card through Apple Pay.
Can you get cash back when using Apple Pay on your Apple Watch?
Yes, Apple Pay purchases made through your Apple Watch earn the cash back rate of the underlying payment card the same as when using Apple Pay on your iPhone.