Cash back for the Bank cards means the return of the funds which were spent on the purchase or service.
In other words, the cash-back is a variation of a discount for purchases. This discount is provided by the Bank, if payment is made via credit card. The amount of returned money is measured in percent, and the percentage of cashback may differ significantly; the discount you may get can also greatly vary, from 1% to 25%.
It’s really difficult to choose the suitable cash-back card because it must correspond to all your needs. To save your time and efforts, you can just go to website, which can help you select a card.
Where can it be used?
When you pay in shops, cashback can amount to 5%, for petrol stations, the average discount is 3%; when paying in cafes and restaurants, a discount is 1-5%.
There are also lists of the Bank’s partners: shops with branded goods, expensive restaurants, tour companies, hotel chains, airlines. Discounts for the services of these companies can reach 25-50%.
Tariffs for servicing credit cards with cashback are higher than the products of the same class without this option, but the opportunity to get discounts can provide more tangible benefits than paying the increased rate. A higher percentage of customer’s cash back reward generally exists in those outlets where the prices themselves are quite high.
Gold or Platinum cards often assume the availability of this feature, and premium products (Infinite or World Elite) include this option by default. By the way, the return percentage may vary depending on the status of ‘’plastic’’.
In case of premium cards, a list of service providers and retail outlets that have discounts, is much higher and covers a larger network around the world. So, for those who travel a lot, the reward credit card money back feature can help to save a considerable sum of your money.
Benefits for banks
With each outlet, the Bank receives a commission. For retailers and service providers, in turn, it is beneficial to offer discounts, because most of the payments made by bank card are refunded back to the client, thus prompting the customer to make more purchases. Additionally, the bank gets profit in the form of various fines for the late debt payments as well as the percent for using the borrowed funds.
Now you know all the details about cashback.
