Cash Back

Cash back refers to two prevalent practices in consumer transactions, both involving the return of money to the cardholder. The first involves a specific type of debit card transaction at retail locations. When making a purchase with a debit card, customers can request to receive a certain amount of cash along with their purchase. This amount is added to the total purchase price, and the customer receives the requested cash from the cashier at the point of sale. This service is particularly convenient for customers who wish to withdraw cash while shopping without making a separate trip to an ATM.

The second form of cash back is associated with credit cards and certain debit card loyalty and rewards programs. In this context, cash back refers to a percentage of the amount spent on purchases that is returned to the cardholder. This return can occur monthly, annually, or according to the specific terms set by the card issuer. Such programs are designed to incentivize and reward card usage by essentially offering a discount on all purchases made with the card.