Credit card companies charge stores a percentage when they use the network.
So If you spend $10 at target for an item target will only get like $8 for that item.
The credit card company keeps the $2.
So what do they do to make you want to use your credit card instead of cash? They give you $1 and keep the other $1.
This scenario is 1% Cashback. Some cards do more or less. Some have bonuses on different stores for different times. But it’s literally how it works
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