what is cash back on a credit card

Cash back on a credit card is a type of reward that credit card companies offer to their customers when they use their cards to make purchases. Cash back rewards can take the form of dollars or points, with points typically redeemable on an issuer's website or through a rewards program. Cash back rewards operate on a percentage basis, with a purchase rewards rate of 1.5% being a common example. If you make $100 in purchases, you would earn $1.50 in cash back. Cash back credit cards accrue rewards when you make purchases within specific categories, and the rewards can be redeemed through your card issuer in various ways, such as statement credit, check, gift card, or merchandise.