Cashback

Cashback is a financial reward where a percentage of the money spent or deposited is returned to the customer. It is commonly offered by credit cards, banks, retailers and online platforms to incentivise spending, saving or specific financial behaviors. Cashback can reduce overall costs and increase savings, making it a popular benefit across various industries.

Cashback can take different forms depending on the context. Here are the main types:

• Credit card cashback: A percentage of the amount spent on purchases using a credit card is returned to the cardholder.
• Debit card cashback: Offered by banks on debit card transactions, incentivising cashless transactions without accruing debt.
• Interest cashback: A portion of the interest earned on funds in a bank or business account is returned to the account holder. The main advantages for businesses and individuals is that they earn interest on deposits while maintaining liquidity.
• Retail cashback: Retailers offer cashback during promotions or loyalty programs. A portion of the purchase amount is refunded after the transaction.
• Online cashback (Affiliate/Reward Programs): Online platforms provide cashback for purchases made through their links or portals. The cashback comes from affiliate commissions.
• Mobile wallet/App cashback: Mobile payment platforms offer cashback for purchases made through their services.
• Tax cashback/refunds: Governments offer cashback or rebates on specific purchases to encourage certain behaviors. For example, encouraging environmentally friendly spending by offering certain amount of cashback on solar panel installations.
• Cashback on loans/mortgages: A portion of the loan or mortgage amount is returned to the borrower after closing. This kind of cashback offer reduces upfront financial burdens.