Why is the cash back higher from grocery and gas than from other purchases?

Answer

The credit card companu sets the policy on cashback, or "rewards" as some companies call them. For example, in Jan - Feb '05, Discover was giving 5% back for books and education related purchases among other things. Some cards issued under the auspices of auto manufacturers will give as high as 5% rebates for use of the card at their dealerships (vehicle purchase, servicing, etc.) With Discover, I go online at least once a month to see what specials they are running on rebates, and sign up. I've done pretty well doing this.

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