What is cashback and how does it work?

Question

And what is the difference between cashback for credit vs debit cards?

Edit: I believe I mean cashback rewards

In: 0

Answer 1

When you buy $100 worth of groceries with a $100 bill, the store gets $100.

When you buy $100 worth of groceries with a credit card, you pay the credit card company $100, and the credit card company sends the store $97 and keeps $3.

If your credit card offers “rewards” / “cash back”, the credit card company gives you $1 and keeps $2 instead.