Rewards programs are one of the most attractive features of credit cards today, and they have a surprisingly interesting backstory. The very first rewards programs were simple: companies gave back a small percentage of purchases as loyalty bonuses, sometimes in the form of “green stamps” that customers could collect and trade in for merchandise. Over time, this evolved into the cashback model, where cardholders earned a percentage of their spending as a statement credit. Later, travel rewards became the hot trend, with airlines and hotels partnering with banks to create co-branded cards that offered miles and points. Today, the variety of rewards programs is staggering. Some cards offer flat-rate cashback on all purchases, others provide higher rates for specific categories like groceries or gas, and premium cards offer transferable points for travel enthusiasts. However, rewards are only valuable if balances are paid in full each month — otherwise, the interest can outweigh the perks. Let’s see how much you know about rewards basics.