How Does Cashback Work On Credit Cards?

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Cashback credit cards offer a percentage of cash back on every qualifying purchase. Some credit cards offer a flat percentage back on all purchases, while others offer higher cashback percentages on popular spending categories like gas or groceries.

Unlike travel credit cards, which often reward cardholders with points or miles that have different values depending on how they are redeemed, cashback rewards have a fixed cash value. Cardholders can redeem that cash back in the form of statement credits, online purchases, and more.

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