Like when a card says it offers a percentage of cash back
Wth does that even mean? If I borrow 200$, then I pay back 200$ or more, so what is cash back?
In: 5
Let’s say you get 2% cash back.
You buy something for $100 in a store.
You don’t use the card again.
The bill comes in the mail for $100.
You pay the $100.
You then get $2 in rewards that usually can be used for paying your bill off but some places can accept it (example Amazon) directly.
The credit card literally gives you money back because they make money when you use the card. Credit card companies charge stores and businesses to accept credit cards.
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