Sears was the first company to start the idea of cash back credit cards.
They basically offered these cards to make people to buy their products and put on the credit with a lender.
They called those cards as Discover Cards.
Soon the idea was picked up by several other companies and now you see many companies offering similar cards with different names.
You are offered cash back every time you use these cards.
Irrespective of what type of card you are using, you may be using prepaid card or secured card you still receive cash every time you use it.
People generally get carried away with marketing tactics.
But they need to realize is they are being charged an interest on these cards.
You can actually asses the cost of such cards by carefully watching the APR%.
If you notice you will realize that the APR% is 3 times higher than the cash back that is being offered to you.
The customers need to make sure that this is not the case irrespective of what type of card you are using.
You are never going to make more cash than what you are going to pay as APR% these are all just marketing gimmicks to lure you for taking their cards because they are basically in business to make money.
They charge huge interest rates along with annual fees and late fees.
If you calculate the end of year you will notice that you actually paid lot more than what you gained.
So it very important that you watch out carefully before applying for any such card.