Cashback shopping in simple words you get a percentage of the amount spent is paid back by the company.
What is cashback?
You can withdraw cash after making a purchase.
A facility offered by some retailers, customers may withdraw cash when making a debit card purchase. Cashback applicable on credit as well as debit cards, more popular on credit cards. Depends on issuing bank.
Cashback and Discount is not same
Discount is given instantaneously before the bill or invoice is generated. Cashback gets reflected in the monthly statement of a card to the card holder as credit.
When cashback credited to buyers
Usually at the end of each billing cycle.
Suppose you have to buy a phone that is $500. If there is 15% of discount on the phone. You would pay 85% of its price, which is $425 and the discount would be $75.
In a case of cashback, you pay the full amount when you buy the phone. The bank will credit $75 for this purchase to your credit card’s statement, which is due after the purchase.
A cashback website runs to buy a team that works as a middleman. A type of reward website that pays its members percentage of earning.
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