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What is Cash Back and How Does Cash Back Work?

12 min read
Last Updated: June 5, 2025

Key Takeaways

  1. With a cash back rewards credit card, you earn cash back from the credit card company for any eligible purchase.
  2. Cash back rewards typically give cash back for a certain percent of the purchase amount, based on the spending category.
  3. You can redeem your credit card cash back in different ways, such as a statement credit.

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