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 $50 worth of stuff at the store, the credit card company only pays the store something like $47 to $49 dollars (depending on their agreement with the merchant, sales volume, chargebacks, and other factors). From that $1-$3 the card pays you something like $0.50 to incentivize you to use the card more.