Cash back on a credit card is a reward given to cardholders as a percentage of their purchases. For instance, a card offering 2% cash back would give you $2 for every $100 spent.
This incentive has become increasingly popular due to its simplicity and value. It allows consumers to earn money back on everyday purchases, helping them offset the cost of credit card use. A pivotal development was the introduction of cards offering cash back on specific categories, such as groceries or gas, enhancing its appeal.