Recently released data shows how Americans racked up and redeemed billions in credit card rewards.
About the Credit Card Rewards Data:
The Electronic Payments Coalition has just revealed data… from 2024. In total, cardholders in the United States redeemed $60.9 billion worth of rewards — which amounts to an average of $558 per credit card-owning household. Of that, $27.8 billion was turned into cashback. Notbaly, $7.2 billion in rewards were redeemed by those with household incomes below $65,100.
This data is being highlighted as back-to-school season is in full swing. In fact, as the data shows, cashback rewards redemptions increase in July and August (and, of course, rise again in November and December). With the National Retail Federation expecting the average family to spend $146 on school supplies this year (up nearly 10% from 2025), the Electronic Payments Coalition notes that the $294 that families with household incomes between $34,510 and $65,100 redeemed in credit card rewards is double that amount. The organization also estimates that $294 is enough to cover 2.5 weeks of groceries.
What They’re Saying:
Regarding the latest rewards data, Electronic Payments Coalition Executive Chairman Richard Hunt stated, “Cashback rewards matter to working families and help offset the high financial costs of sending kids to school, helping pay for clothes, backpacks and computers. Unfortunately, there are politicians in Washington who want to change the way credit cards work and eliminate this important financial tool.”
My Thoughts:
If it wasn’t clear from Hunt’s statement, the Electronic Payments Coalition represents financial institutions and payment networks that have a vested, monetary interest in getting more consumers to pay via card. As for that swipe (no pun intended) at Washington, lawmakers have long considered caps on transaction fees, which would limit how much payment networks could charge. In turn, it seems very likely that such legislation would lead banks to pull back on credit card rewards — which is how organizations such as the EPC are rallying consumers to their side.
Despite all of that, I do think it’s interesting to get a picture of how much cardholders redeem in credit card rewards each year. I also appreciate that the data is at least partially broken down by household income, proving that it’s not just the ultra-wealthy cashing in. Of course, those who are unable to get approved for rewards credit cards for one reason or another may be missing out… which brings us back to why lawmakers may be looking to make changes.
Ultimately, if you are someone looking to offset back-to-school purchases with credit card rewards, I recommend a flat-rate 2% back card such as the Citi Double Cash or Wells Fargo Active Cash cards. Alternatively, if you spend a lot on groceries as well as dining and entertainment, then the Capital One Savor card remains one of my favorites. Each also offers cashback options, so you can aid your budget with rewards — just as the Electronic Payments Coalition suggests.
