What are the benefits of cash back?

Cashback, effectively a reward or incentive, is primarily used by credit card companies to encourage consumers to make purchases on credit more often. A cashback feature on a credit card allows the cardholder to earn a percentage (ranging typically from 0.25%-5%) of eligible spend.

What is cash back?

Cash back refers to a credit card benefit that refunds the cardholder’s account a small percentage of the sum spent on purchases. Cash back rewards are actual cash that can be applied to a credit card bill or received as a check or bank account deposit. Cash back apps and websites can offer consumers a way to earn money back on purchases.

How much cash back can you earn?

The amount of a cash-back reward can range from 1% to 5% of a transaction. 2 Some transactions also offer extra rewards through merchant partnerships: Purchases at that merchant earn you more than purchases elsewhere. 3 Credit cards often offer varying cash-back levels, depending on the type of purchase or transaction level.