How Does Cash Back Work On Credit Cards?

Question

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

Answer 1

Hmmm my bank does about 50 back for every 1000 spent but it’s accumulated in points traded for moneys