Cash back is the retail facility whereby a customer may withdraw an amount of cash when making a purchase with a credit card or debit card, the amount being added to the bill.The term cash back is used in several contexts to refer to schemes in which customers receive money, in the form of cash or otherwise, during transactions in which the main movement of money is in the other direction.
For example:
Cash back websites:
These allow customers to earn a cash rebate on online purchases that they make. The cash back website will receive a commission payment from the retailer and once the purchase is confirmed will then share this payment with the customer who made the purchase. This means that the cash back site makes a profit on the sale and the consumer gets to recoup some of the initial outlay back.
Debit card cash back
This allows shoppers to receive cash along with their goods when paying by debit card. This is a service offered to retail customer whereby an extra amount of money is added to the total purchase price of a transaction (paid by debit card) and the customer receives the extra amount in cash along with their goods.
Credit card cash back.
This is in which the card company pays the customer a small amount for each use of the card. When accepting payment by credit card, the merchants typically pay a percentage of the transaction amount in commission to their bank or merchant services provider.
