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Cashback Optimization: Categories vs Flat-Rate

Category cards (5% groceries, 3% gas) average 2.8% overall vs flat 2% cards—on $20K/year spending: category = $560 vs flat = $400 = $160/year difference. Match card to spending: 60% groceries? Cate...

Editorial Team February 25, 2026

Sources: Official issuer websites, Federal databases, Community reports

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Cashback Optimization: Categories vs Flat-Rate

Category cards (5% groceries, 3% gas) average 2.8% overall vs flat 2% cards—on $20K/year spending: category = $560 vs flat = $400 = $160/year difference. Match card to spending: 60% groceries? Category card (5% × $12K = $600). Otherwise 2.5% flat card

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*Key Metrics: Cashback Optimization | Timeline: 20-25 mins | Effort: Minimal | ROI: $0-480*

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