Just discovered my credit card's "Cash Back" program. Is it really just free money? I find it too good to be true.

[u/cop-disliker69]

I was paying my credit card bill online and I found a link on the Bank of America website said I had unredeemed cash rewards, several hundred dollars. I had never noticed this before. It gave me a few options for how to redeem it, it said they could send me a personal check in the mail or I could deposit this money directly into my savings account with the bank. It says I get 1% cash back for every purchase I make, and 2-3% for certain purchases.

Is this really how it works? I get paid a small bonus every time I spend money using my credit card? And it's just free money no strings attached?

I was always taught if it sounds too good to be true, it is too good to be true. I suppose it's not that much money, because I think these hundreds of dollars were earned over like five years since I first got this credit card. Still, what's the angle here?

EDIT: Disclaimer. This is not native advertising. Bank of America is a racist, redlining, predatory-lending, family-evicting pack of jackals. This was a genuine question I asked in good faith and did not expect to get huge like this.

[u/ConnorCG]

Worth noting that it does not check Amazon. If you find a cheaper price on Amazon you need to submit it manually, and Amazon is where most of the lower prices are.

[u/aerogrower → u/ConnorCG]

How does it check that you bought what you said you bought?

Normally it just shows $60 at whatever store. What if I tell them I bought something that they will be able to find at a cheaper price, even though I bought something else?

[u/ConnorCG → u/aerogrower]

You have to manually enter your purchase details and upload a receipt on the website to start tracking.