Cash back refers to a rewards program where you receive a percentage of the amount spent on purchases as a return. Typically, you earn these when you make purchases using cash back credit cards. You can redeem them multiple ways, but the most common ways to redeem them are as cash or as a statement credit. This differs from points-based rewards programs where you earn points instead of actual cash; you get points you can later redeem for various items such as merchandise, travel, gift cards or experiences.
Cash back is ideal for regular shoppers looking to get more value from their spending habits. If you use your credit card frequently, understanding cash back could help you save money on your everyday expenses.