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
Nobodys quite answered your first question yet, so here ya go.
The cash back is given back to you separately instead of immediately applied to your purchase. In your account, it should have your cash back balance listed somewhere with the amount available to use.
So if you spend $100, it’ll say $2 available cash back. It will then either let you apply that $2 as a statement credit, taking your balance down to $98, or let you redeem it directly with any of their partner sites, or add it to a gift card you can then go spend. The specifics here will vary by card.
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