A type of credit card reward in which a small percentage of the amount spent is credited back to the cardholder.
Cashback credit cards are usually designed to give cashback or cash rebates on specific categories of transactions, such as travel, dining, entertainment or groceries. There are also some credit cards that give cashback across all categories of spending.
Notwithstanding the above, there are certain transactions that do not earn rebates, such as recurring bills, insurance premiums or fines. Interest payments, instalment plans and fees are also usually not eligible for cashback.
The amount of cashback you can earn within a statement month is usually capped at a predetermined amount. However, there are some cashback cards that give unlimited cashback.