Overview of Cashback
Cashback is a way of earning money back when you make a purchase using your credit card. It offers benefits for both consumers and retailers. You receive a portion of the purchase price back after making a purchase.
Understanding Cash-back Credit Cards
Cash-back credit cards can be rewarding. Every time you use one to make a purchase, it earns a percentage of the amount paid. Cash back is issued at the end of the billing cycle and you can redeem it as a deposit, statement credit, check, gift card, depending on the card.
Earning and Redeeming Cashback
If you shop online frequently, you could earn thousands in a year by using a cashback site. For instance, 6% cashback on a $500 device means you should get $30 back.
The typical cashback card works like this: You use it to make purchases or pay bills. The lender rewards you by giving back a percentage of your purchase total as cashback.
On the downside, cash-back cards may have fees or cap rewards. You do have to spend to earn. If your card closes, you can lose rewards.