Credit Karma Money Spend Adds Cashback Offers for Cardholders

Those looking to add some extra cash back into their pocket will soon have a new option. This week, the popular credit monitoring site Credit Karma announced a new feature for its Credit Karma Money customers. Now, debit cardholders will be able to earn cashback when making purchases from select retailers. According to the site, the list of eligible retailers includes national chains, such as Adidas and Shake Shack, as well as local small businesses. This new platform will be powered by Cardlytics, which already partners with a number of banks and FinTechs.

When the cashback feature officially launches, Credit Karma Money Spend members will automatically be enrolled in the program. Then, when customers make eligible purchases from partner brands, they’ll receive cashback directly into their Spend account. Notably, there are no payout minimums and cashback funds can be used as soon as they’re available. Additionally, Credit Karma says that these offers will apply to online and in-store purchases “in most cases.”

This cashback benefit comes on top of what Credit Karma Money already has to offer. That includes the company’s “Instant Karma” program where debit card users have a chance at being reimbursed for a purchase they just made. Instant Karma is capped at $5,000 per win and is also not available to residents of Florida or New York.

Speaking to why the platform decided to launch a cashback offering, Credit Karma SVP and GM of Credit Karma Money Poulomi Damany said, “Cashback benefits and other such rewards have historically been reserved for credit cards. Specifically, those that are most often only obtained by consumers with prime credit. That didn’t seem fair to us. That’s why we sought to deliver cash back rewards to our members for spending with retailers they already know and love.” Damany added, “The best part? They’re able to earn cash back for spending money they already have, resulting in more money in Americans’ pockets.”

Additionally, Credit Karma Money Product Manager Satyen Motiani stated, “We’ve built Credit Karma Money to do more for our members and that starts with helping them develop better financial habits and giving them ways to make their money go further. Cash back rewards from Credit Karma Money is the latest example of that.”

Credit Karma isn’t alone in adding retailer-specific cashback deals for its cardholders as the feature has become a bit of a trend as of late. For example, Upgrade rolled out a cashback shopping portal for its customers in February followed by Varo Bank introducing its Perks cashback marketplace in March.

With inflation still soaring, any money that consumers can save is definitely welcome. That’s likely why more and more services are adding cashback marketplaces to their offerings. Plus, these portals can be a win-win-win for consumers, brands, and intermediaries as it saves shoppers money while increasing sales for retailers and growing engagement (not to mention interchange fees) for debit card issuers. Thus, while Credit Karma is the latest company to roll out such a feature, you can bet that it won’t be the last.

Leave a Reply

Your email address will not be published.


Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Marqeta Expands Credit Program with New APIs and More

A FinTech that specializes in creating credit card experiences is rolling out some new features. This week, Marqeta announced what it calls a "significant expansion" of its credit platform. This includes more than 40 new credit APIs that will further help clients craft and launch their own credit card products. Additionally, the company notes an updated intuitive dashboard. Using this platform, businesses can create unique card options that can not...

PayPal Launches Small Business Credit Card with Flat 2% Cashback

The popular platform PayPal is rolling out a new product built specifically for small businesses. Today, the FinTech announced the launch of The PayPal Business Cashback Mastercard. The new card will be issued by WebBank and marks the first time PayPal has offered a business credit card. With the PayPal Business Cashback card, business owners will be able to earn 2% cashback on all purchases. This earning rate is not...

Wells Fargo Unveils New Autograph Rewards Visa Card

A new rewards credit card is on the way from Wells Fargo. Today, the bank introduced its Autograph card, which expands the company's refreshed card portfolio. In terms of rewards, the Wells Fargo Autograph Card will earn 3 points per dollar spent in a number of categories. These include restaurants, travel and transit, gas stations, select streaming services, and phone plans. All other purchases will earn 1x points. Beyond the...