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
It means you spend $200 and then you get a “cash back” reward that’s typically 1-2% of purchase amount, so a reward of like $2-4. Basically, credit card companies charge retailers about 3% to process transactions, then give a portion of that back to customers as a loyalty program.
Some people make a big deal of it, but the reality is would you be super excited if you walked into a store that was offering a 1% off sale? I mean it’s better than nothing, but it’s still not a lot of money.
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