When credit card customers make purchases via their cards, cash-back credit cards reward them with bonuses in dollars or points. Cashback rewards function on a percentage basis. For instance, if the client purchases $100, he will have $1,5 cash back if he owns a card with a purchase reward of 1,5%.
Cash backs can differ according to the type of purchase; furthermore, some credit cards may limit the number of cash backs during a specific period of time.
Cash Backs Can Come in Different Ways
Fixed-category cash backs are provided when spending on pre-defined categories like groceries, entertainment, traveling, etc.