I’m researching to open my first proper card and still confused about how cash back works.
Say you buy a burger and get 2% cash back. Does it apply a 2% discount to the burger? Or do I earn 2% of the burger’s price?
Where does the money for the cash back come from? Does the cash back affect credit score?
In: Economics
Check your credit card agreement, but on my card, when I make a qualifying purchase, a percentage of the amount charged goes into an account with the credit card company. I can then choose to use that to pay some of my balance or get other things through their program. I don’t have an option for them to just give me cash, but the statement credit is basically the same thing.
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