personal-finance

Cashback Rewards

Percentage of purchases returned as cash or credit

Also known as: cash back rewards, cashback program, cash rewards

What You Need to Know

Cashback rewards are incentives offered by credit cards where a percentage of purchase amounts is returned to the cardholder as cash, statement credit, or points. Typical cashback rates range from 1-5%, with higher rates often applying to specific categories like groceries, gas, or dining.

Sources & References

This information is sourced from authoritative government and academic institutions:

  • consumerfinance.gov

    https://www.consumerfinance.gov/ask-cfpb/what-is-a-cash-back-credit-card-en-1997/