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
They give you the money periodically. (In practice, it’s usually not automatic. You can spend it at some stores through their website, have it applied to your balance, or have them send you a cheque.) It comes from transaction fees. It doesn’t affect your credit score.
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