Cash Back Credit Card

Business, Legal & Accounting Glossary

Definition: Cash Back Credit Card

Cash Back Credit Card

Full Definition of Cash Back Credit Card

Cashback credit cards offer a straightforward cash reward for using them. These loyalty schemes return a percentage of your spending to you in the form of a cash rebate. The exact percentage on offer varies and most cash back credit cards tempt potential users with an introductory period offering a higher percentage return.

Introductory cashback deals may offer you as much as 3% while ongoing spending will attract returns between 0.5% and 1.5% depending on the credit card and on the actual level of spending.

A cashback credit card is worth considering if and only if you pay off your outstanding credit card bill in full each month. If you don’t clear your credit card debt then any cash back you earn will be more than outweighed by the interest charges you incur.

If you are going to carry a balance forward on your credit card you would be better off looking for a long term low-interest rate credit card. If you have no credit card debt and you don’t intend to have any then a cashback credit card could make sense.

If you can be disciplined enough to use your credit card for your day-to-day purchases, while keeping the money aside to repay your statement at the end of each month, then it can be a win-win situation. A savvy consumer can earn interest on savings for the month while receiving cashback or incentives ‘free of charge’ from their credit card.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Cash Back Credit Card. Payroll & Accounting Heaven Ltd.
January 27, 2022
Chicago Manual of Style (CMS):
Cash Back Credit Card. Payroll & Accounting Heaven Ltd. (accessed: January 27, 2022).
American Psychological Association (APA):
Cash Back Credit Card. Retrieved January 27, 2022
, from website:

Definition Sources

Definitions for Cash Back Credit Card are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 15th February, 2020 | 2 Views.