And what is the difference between cashback for credit vs debit cards?
Edit: I believe I mean cashback rewards
In: 0
When you swipe your credit card at a store, the merchant (business, shop) has to pay a transaction fee to the credit card company. The fees are so high that the credit card company can offer you a portion of that as an incentive for you to use their card more often.
That incentive or reward can be in the form of points you can redeem for travel, gift cards, items, etc. Or you can apply it as “cashback”, which usually means it goes towards paying off your balance. If you have no balance it can be applied as a credit on your account for future use, or sometimes cashed out to your bank account.
Debit cards typically don’t offer this since it’s tied directly to your bank account and often not processed as a credit card… and even when it is processed as a credit card you’re not getting anything back, just because that’s how the system is.
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