Can You Get Cash Back with Apple Pay? How it Works: A Quick Explanation in 2023

As a small business owner, maximizing rewards and cash back on your purchases can be a great way to boost your bottom line. With Apple Pay‘s growing acceptance, using it to earn cash back is an increasingly appealing option. But how exactly does getting cash back with Apple Pay work?

In this article, we‘ll answer the question "can you get cash back with Apple Pay?" and break down the mechanics behind it, so you can take full advantage as a business.

Overview of Cash Back with Apple Pay

At a high level, the process of getting cash back rewards with Apple Pay mirrors that of physical credit and debit cards. The key steps are:

  • The merchant must accept Apple Pay as a form of payment.
  • The debit or credit card linked to your Apple Pay account must offer cash back rewards.
  • When you use that card via Apple Pay, you earn the standard cash back percentages and benefits.

For example, if you have a Capital One SavorOne card in your Apple Pay wallet that gives 3% cash back on dining, you‘ll still get the 3% dining rewards when using that card with Apple Pay.

A Closer Look at Apple Pay Acceptance

As of 2022, Apple Pay is accepted at over 90% of retailers in the U.S. This gives you ample opportunities to use it and earn rewards.

Top merchants accepting Apple Pay include:

  • McDonald‘s
  • Walgreens
  • CVS
  • Target
  • Best Buy

Many small businesses also accept Apple Pay using basic NFC credit card readers or POS systems like Square. Always look for the Apple Pay logo or contactless payment symbol to confirm.

Best Cash Back Credit Cards for Apple Pay

To maximize your rewards, partner the right cash back credit card with Apple Pay. Here are some top options for small businesses:

  • Ink Business Unlimited® Credit Card – Earn 1.5% cash back on every purchase with no annual fee. Great for flexible rewards.
  • Capital One Spark Cash Plus – Up to 2% cash back on all purchases. $150 annual fee.
  • American Express Blue Business CashTM Card – 2% cash back with no annual fee. Up to $50,000 in annual rewards.

Compare cards to find one matching your business spending categories and cash flow needs.

How Daily Cash Works with the Apple Card

The Apple Card takes Apple Pay cash back to the next level with Daily Cash rewards. Here‘s a breakdown:

  • 3% Daily Cash – At Apple, for Apple services, and at select merchants
  • 2% Daily Cash – Anywhere that accepts Apple Pay
  • 1% Daily Cash – With the physical titanium Apple Card

Daily Cash is deposited each day into your Apple Cash card balance, which you can spend directly via Apple Pay. This provides immediate access to your rewards.

My small business earns approximately $100 in Daily Cash each month, which I use to reinvest in marketing and other expenses.

Tips to Maximize Cash Back with Apple Pay

Follow these tips to optimize your Apple Pay cash back earnings:

  • Track rewards – Monitor cash back earned in the Wallet app and through your credit card portal.
  • Know bonus categories – Many cards offer higher rates for certain purchases. Maximize these.
  • Use Apple Card – Consider getting the Apple Card solely for its excellent Daily Cash rewards.
  • Pay with phone – Always choose contactless Apple Pay instead of chip/swipe when possible.
  • Buy Apple products – You get 3% back when purchasing Apple products and services with their card.
  • Leverage promotions – Card issuers and merchants often run special Apple Pay cash back promotions.

Limitations to Keep in Mind

While Apple Pay facilitates earning cash back, a few limitations remain:

  • Merchant acceptance – Approximately 90% of U.S. merchants accept Apple Pay, but it‘s not universal yet.
  • Card benefits – You must still adhere to your card‘s specific cash back rules, categories, and caps.
  • Returns – Cash back may be reversed if you return an Apple Pay purchase. Monitor your rewards balance.
  • Fraud – As with any credit or debit card, fraudulent transactions could impact earned rewards.

Final Takeaways on Apple Pay Cash Back

For small business owners, Apple Pay cash back provides an easy way to earn extra rewards on your daily expenses. To recap:

  • Cash back works similarly to physical cards when using Apple Pay. Look for contactless acceptance.
  • Choose cards like the Ink Business Unlimited for the best rewards. Monitor bonus categories.
  • Apple Card‘s Daily Cash is hard to beat. The 3% at Apple is especially beneficial.
  • Track rewards closely and watch for promotions and special offers.

So with the right setup, Apple Pay can become a rewarding way to complete business purchases while supporting your bottom line. Take advantage of this cash back opportunity as Apple Pay rises in popularity.