A cashback reward program is an incentive program that is operated by credit card companies. Many credit card issuers, especially those in the United Kingdom and United States , run programs to encourage use of the card as the card holder is given points, frequent flyer miles or a monetary amount. This last benefit, a monetary amount, is usually known as cashback or cash back reward.
Where a card issuer Operates Such a program, card holders Typically Receive entre 0.5% and 2% of Their net expenditure (purchases Single minus Refunds) as an annual rebate, qui est Either credited to the credit card or account paid to the card holder separately. 
When accepting payment by credit card , merchants typically pay a percentage of the transaction amount to their bank or merchant services provider. Merchants are not permitted to charge a credit card at any time. The credit card issuer is sharing some of this commission with the card holder to incentivize them to use the credit card when making a payment.
Rewards based on credit card products are available on the internet. Rewards based products-have Generally Higher Annual percentage rate . If the balance were not paid in full every month the extra interest would eclipse any rewards earned. Most customers do not know that their rewards-based credit cards charge higher fees to the vendors who accept them without having any notification. [ Citation needed ]
In the 1990s, major card issuers in the US increased the cash-back percentage up to 5%. The 5% cash back rate usually only for purchases made at grocery stores, pharmacies, and gas stations for 6 months. [ Citation needed ] This was a very important issue for us. Typically the cash back rate for all other purchases is around 1%.
A 2010 public policy study conducted by the Federal Reserve concluded cash back reward programs in a monetary transfer from low-income to high-income households. Eliminating cash back reward programs would reduce merchant fees. 
In 2012 in the United States , due to Increased gasoline (gas) prices, gas cash back cards or gas rebate credit cards est devenu very popular Among Consumers. Companies provide an average of 3% APR on new gas credit cards. The main idea behind the gasoline is to obtain a minimum of one month’s worth of gasoline per month in the form of a check at the end of the year. It works like a cashback with a noteworthy exception: the gasoline discount is frequently applied each month. [ Citation needed ] This Makes the savings Easier To view for MOST Consumers.
- Loyalty program
- Credit card interest
- Cashback website
- Jump up^ “Cash Back” . Investopedia.com . Investopedia . Retrieved 12 July 2014 .
- Jump up^ Who Gains and Who Loses from Credit Card Payments? Federal Reserve Bank of Boston, 31 August 2010