Which term best fits the description of benefits earned through card use such as miles or cashback?

• A. Fraud protection
• B. Annual fee
• C. Credit card rewards
• D. Cash advance fee

Answer: (C)

Benefits earned through card use such as miles or cashback are called credit card rewards. These are incentives the issuer offers to encourage you to use the card, typically accumulating as points, miles, or cash back with each purchase and redeemable for travel, statement credits, or merchandise. This concept is different from other card features or costs: fraud protection is a security feature that helps shield you from unauthorized charges, an annual fee is the recurring charge for access to certain card perks, and a cash advance fee applies when you withdraw cash using the card. Rewards programs are the main idea that ties everyday spending to tangible benefits, especially for those who plan their purchases to maximize redemption value.