In short, you cannot swipe the credit card at any merchandise of your choice and expect to get cash-back as a reward. The concept of cash-back sounds simple. Let us assume a bank offers 5% cash back on purchase at a particular apparel store. If you swipe the credit card for a bill amount of 100, the bank will give you back 5 as part of the offer. But, the offers come with riders. Here are some of them:

Minimum amount spent: You do not get cash back on any amount swiped on your credit card. There cash-back offers are valid only if you spend a minimum amount, which varies from bank to bank. But the broad range is anywhere between 1,000 and 3,000. So if you spend anything less than 1,000, you may not be eligible for a cash back offers.

Caps on cash-back offer: Many banks also have a cap on such cash-back offers. For instance, a bank may offer 10% cash back on all purchases, but may cap the maximum amount at 1,000. So, even if you spend 30,000 on your purchase, you will only get a cash-back of 1,000 and not 3,000 (10% of 30,000).

The POS factor: Some banks give cash back only if the card is swiped on its own point of sales (POS) terminal. Usually, if banks have tie-ups with a merchandise, they ensure that they put their own POS terminal for cost advantage. However, a cash-back offer should not lure you to spend more.

If you stretch your spend beyond the budget anticipating some cash back, you may be caught on the wrong foot. Hence, read the terms and conditions of your cash-back offer before you plan to shop this festive season.