Eli5: How does credi cards cashback work?

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How can we get money back from what we buy ? (1-10%) can’t we abuse it if someone we know has a shop ?

In: Economics

5 Answers

Anonymous 0 Comments

Cashback rewards are pretty simple:

You’re getting paid out of the interest fees that other people are paying when they’re not paying their balances on time, which happens a lot more than the reverse.

Could you abuse it the way you describe? Sure, maybe, but then the shop owner might start losing money.

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