Points, miles, and cash back can all be confusing to people new to the game. While I am not going to try and explain everything here, I will give a quick breakdown of the three generic types of rewards cards.
1. Cash back cards: These are simple and easy to use. You spend X dollars and get 1-5% of X back usually. The cash back usually has low thresholds and you don't need to spend thousands of dollars to see a benefit.
2. Fixed Value Points/Miles Cards: These are basically lesser versions of cash back cards. They give you 1-2 points per dollar spent but each point has fixed value, which is often 1 cent. The Southwest fixed value cards are one of the few exceptions. With the Arrival and Venture series, for example, 1 point is 1 dollar making them 1-2% cards (depending on the card/AF...though Arrival Plus is a bit over 2%) with more limited redemption options than cash back cards. These cards rarely make sense other than for a sign-up bonus or the like because 2% cash back cards have no AF fees and more flexible redemption options.
3. Flexible Value Points/Miles Cards (Amex MR/Chase UR/SPG/etc): These points sometimes also have a base fixed value, but they often give best rates when transferred to airline partners. For domestic economy travel they rarely make sense (BA points are one of the only exceptions due to distance based costs). They get prime value for international first class or business class travel. Your redemption value on economy is usually in the 1-1.5 cents per point range, but for first class international, you can often get 3-5+ cents per point in value. These can make a lot of sense if you travel. The downside is the number of points you need for good valuations. I rarely spend these points when I have less than 50-80k points PER traveler. Earning the points can take a while even when you spend 60k+ a year on cards like I do unless you hit a lot of sign-up bonuses. These cards can be great, but they all have AFs and for most normal spenders it will take years to earn any free trips.
I use cashback cards for 5% category spending and put most of the rest of my spend on my CSP. If you have high spend and like to travel, flexible value points/miles are probably best. If you have low spend or don't like to travel, cash back is best. If you don't have the time to find good value from your points or have very fixed travel plans, cash back cards are best. Fixed value point cards can sometimes be useful (e.g. SW cards), but I tend to avoid them. The Arrival Plus can beat out the Double Cash or Fidelity Amex due to its >2% yield rate, but it has an AF and unless you put high spend on it, you won't see a benefit.
