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
A credit card company makes money by charging stores to take credit cards, and by charging people to use credit cards.
If you’re a good customer, the credit card company might give you back a bit of of the money that they’ve collected. The amount, depends on how much you bought. Buy more, and they give you more. That rewards you for using your credit card (which is how they make money), possibly getting you to use it more often.
You’ll never get as much back as they made off you, but the little amount you get is better than nothing.
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